150K in sales after a 20 minute conversation

[Greg B]

It was suggested in the thread by Vigilante (Because I can) that I start another thread highlighting the action I took today. I became aware of a need of a local supplier in my town and I had the name of a decision maker at that supplier. I stopped in today and expressed an interest in filling that need and basically within about 20 minutes had a verbal yes to supply 50,000 units which would turn into about 150K in sales. My contact said this could have potential to turn into 100,00 units.

Obviously I have much to do like turning the verbal into a signed PO. A couple of other small details like getting the needed equipment, finding and setting up raw material vendors, actually forming a business. You know, small stuff.

The product is very simple to make but does take some expensive material handling equipment to process. I am working on ways to bootstrap the equipment by building as much myself vs. buying new to start with. The good news is, additional products can be produced and sold with the same equipment. This is a very repeatable process and product.

After reading Vigilantes thread, I realized I was the girl he was speaking to. Just looking for answers or for someone to help. In the past I would have spent weeks over thinking everything and finding reasons not to move forward. It's hard not to move forward with a possible 150K sitting in front me like a carrot dangling. I'll will update progress as I move forward. I'm sure I will have roadblocks in front of me that may require someone being "rude" to me to push me past.:coolgleamA:

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[The-J]

I wish there was a double speed function, because I usually give speed for action.

You not only took action but you did it right. You sealed the deal, analyzed the risk, and now are about to move forward with putting your time and money into making the deal work.

Make it work. Speed+++

 

[Mike39]

Speed++++++x3 Awesome stuff man, hope everything holds up transferring the agreement to paper

 

[Greg B]

First off, thanks for all the positive replys. It's reinforcing to see like minded people agree you are taking the right steps.

I am listing my short term plans below. I am giving myself to next Wednesday to complete.

1. Obtain pricing on my raw materials. I know who and where the vendors are so this should not be to difficult. My vendors will mostly be located in my region. I will need to establish freight cost as well. This is number 1 for me as I need to nail down my pricing and confirm my margins.

2. Packaging - I need to find a vendor, get pricing, determine leadtimes, etc. This will also be needed to establish my cost.

3. I want to confirm the need for this product by establishing additional potential distrubution channels. I plan to approach 5 additional end users to discuss my product and receive feedback.

4. Lastly and maybe most important. I need to stay visible and in contact with my first lead as I work toward a signed PO. I believe he will want his first delivery sometime in March. This gives me time to prepare but I also know how much can change in that amount of time. If I can get a signed PO even for a partial order, I would get the confidence to start getting equipment, etc.

Feedback and ideas welcome!!

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Vigilante]

On one of the first license deals I ever did, we were sitting in a dimly lit, smoke filled conference room in Asia at what would have been 4AM in the United States. Dead tired, running on fumes, but focused. We had scheduled production without having the license deal in place, and now were racing a clock to get the license brand. Televisions were scheduled to be rolling of the production line in days (unknown by the brand holder) and we had to get a deal done.

The result of that deal was one of the most successful ventures I have ever been affiliated with.

This is how many people become great. You stick your balls out there on the line. Backing into a deal like this is fine. You will make it happen now, because you HAVE to make it happen.

Micro manage every detail of this plan until it falls into place at the work of your hands. You can do this. Make shit happen.

 

[TheTruth]

Good for you Greg!

This thread alone inspired my day already.

On one of the first license deals I ever did, we were sitting in a dimly lit, smoke filled conference room in Asia at what would have been 4AM in the United States. Dead tired, running on fumes, but focused. We had scheduled production without having the license deal in place, and now were racing a clock to get the license brand. Televisions were scheduled to be rolling of the production line in days (unknown by the brand holder) and we had to get a deal done.

The result of that deal was one of the most successful ventures I have ever been affiliated with.

This is how many people become great. You stick your balls out there on the line. Backing into a deal like this is fine. You will make it happen now, because you HAVE to make it happen.

Micro manage every detail of this plan until it falls into place at the work of your hands. You can do this. Make shit happen.

No wiser words could have been spoken

 

[Vigilante]

Side note to lurkers. He has 28 posts on this forum, and a speed #of 90kph. That's because he's an action taker. He's leaving footprints of his action that other people can get motivated by.

Will he succeed? Yep. Is this the one that he will succeed with? Too soon to tell... but hopefully. If not, he will do it again until he wins.

Are you sitting at 0 speed (meaning, you haven't contributed value to this forum)? Let this thread be your wake-up call to get up off of your a$$ and try. Try and see what happens. Dare to fail. Take risks.

Watch his story unfold and create parallel action in the universe YOU live in.

Or, sit here and wish upon a star that some day you get lucky.

Guys like Greg make their own luck. He didn't wait for tomorrow. He might succeed on this one. He might fail. But he left himself zero room to turn back.

If I could give his post 100 speed clicks myself, I would.

And we're waiting to see what YOU do.

He posted this thread not for himself. He's already up off the figurative couch. He posted this thread for YOU.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Greg B]

Side note to lurkers. He has 28 posts on this forum, and a speed #of 90kph. That's because he's an action taker. He's leaving footprints of his action that other people can get motivated by.

Will he succeed? Yep. Is this the one that he will succeed with? Too soon to tell... but hopefully. If not, he will do it again until he wins.

Are you sitting at 0 speed (meaning, you haven't contributed value to this forum)? Let this thread be your wake-up call to get up off of your a$$ and try. Try and see what happens. Dare to fail. Take risks.

Watch his story unfold and create parallel action in the universe YOU live in.

Or, sit here and wish upon a star that some day you get lucky.

Guys like Greg make their own luck. He didn't wait for tomorrow. He might succeed on this one. He might fail. But he left himself zero room to turn back.

If I could give his post 100 speed clicks myself, I would.

And we're waiting to see what YOU do.

He posted this thread not for himself. He's already up off the figurative couch. He posted this thread for YOU.

I got goosebumps reading that, thank you!

 

[andviv]

First, congratulations on this huge accomplishment.

You also validated the need.

I am sure at some point you discussed a price (even a ball-park figure).

to supply 50,000 units which would turn into about 150K in sales. My contact said this could have potential to turn into 100,00 units.

This tells me you are looking at a sales price of $3 per unit. Probably will retail for $5.50 to $6.00. Correct?

What is your guesstimate for production cost?

With those numbers, you probably will be looking at less that $1 per unit.

Just to get an idea, how much would the equipment cost you?

Is there a company around you that produces the same thing, or has the same machines, but does not run 24/7? Maybe they are amicable to you subleasing their production for, say, 4 hours each night, saving you the original investment for the machines.

Are these machines things that can be bought out of craiglists, used, where companies may sell them as they don't need them anymore? Or they are really that specialized?

 

[Greg B]

This tells me you are looking at a sales price of $3 per unit. Probably will retail for $5.50 to $6.00. Correct?

What is your guesstimate for production cost?

With those numbers, you probably will be looking at less that $1 per unit.

Just to get an idea, how much would the equipment cost you?

Is there a company around you that produces the same thing, or has the same machines, but does not run 24/7? Maybe they are amicable to you subleasing their production for, say, 4 hours each night, saving you the original investment for the machines.

Are these machines things that can be bought out of craiglists, used, where companies may sell them as they don't need them anymore? Or they are really that specialized?

I believe my pricing will be between $2.90 - $3.25/ per unit. Retail would most likely be a little lower than your number. This is a product that is sold on volume with a continued need. Probably $4.50 - $5.50 retail.

I can say with confidence that my production cost would be under $1.00 per unit. Based on process layout and continuous improvent I feel like $0.85 - $0.90/ per unit is obtainable.

Equipment could get priciy. Just to get started if I bought new, I would be looking at 15-20K for processing equipment. I would also need a forklift. At this point, I'm working on getting enough business lined up that equipment and indirect cost would become a minor decision. Also, I do have the skills to make some of the processing equipment myself. It would not be cutting edge by any means but it could get me by long enough to fullfill orders and generate income to purchase better equipment.

I believe a company with the machinery I need would see me as competition. My product is not a new concept by any means. I am simply changing it in order to fill a need.

Not much oportunity to find anything like this on craigslist. Forklift and basic equipment yes, but not my actual processing equipment.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[andviv]

Great info.

How common is this product? [[meaning: can you approach each 7-Eleven and grocery store to offer the same product?]]

Any big names as your competition?

Internet sales and distribution, does it make sense for this product?

I understand your product is seasonable thus the request for March delivery. Is this correct?

How much space will you need for production and stocking your inventory?

 

[Greg B]

Great info.

How common is this product? [[meaning: can you approach each 7-Eleven and grocery store to offer the same product?]]

Any big names as your competition?

Internet sales and distribution, does it make sense for this product?

I understand your product is seasonable thus the request for March delivery. Is this correct?

How much space will you need for production and stocking your inventory?

Yes, I can approach many stores for distrubution.

There is some big competion. My angle is to change the packaging to fill the need. I also believe I can establish some delivery options that the big players do not and probably will not be willing to do. This would allow me to go after market share that currently does not have the opportunity to sell my type of product. Kind off hard to explain without giving to away to much, sorry. More research is needed on this.

I believe a company website will be needed but currently, internet sales and internet distribution is not common in this industry. Could be another option for me to offer though.

Again, hard to explain. The product is seasonable and it's not at the same time. Think of it this way, I would be producing different (related) product families that would be seasonable yet keep me producing year around. Hope that helps.

I think production could be done in 20,000 sqft. I would prefer to keep my inventory at my customers.

 

[andviv]

I believe a company website will be needed but currently, internet sales and internet distribution is not common in this industry. Could be another option for me to offer though.

Yeah, may be a huge differentiator, especially if it allows you to somehow offer a discount for online orders with longer delivery time, that may help you to level production (i.e. having all weeks the same or very similar volume of orders) instead of having too many ups and downs in production time.

Also, if you own the online market for this product, and also own the eBay distribution channel, you will cover more geographical territory. May be a great advantage, but without knowing more details we can't tell. I just want to provide you ideas.

Again, hard to explain. The product is seasonable and it's not at the same time. Think of it this way, I would be producing different (related) product families that would be seasonable yet keep me producing year around. Hope that helps.

Great, and that is why I asked. Leveling production makes your life way better. Being able to produce and sell all year long is a great plus.

Thanks again for sharing this info. I hope we here can help you with ideas that better your process and product.

I wish you the best of luck!

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Greg B]

I put some product sample kits together this morning. I'm very happy with how they turned out. I bought a few plastic containers and used a lable maker I had. Total spent $12.50.

I will be going out to potential customers over the next few days to generate interest and feedback. I will be looking to gain the following information from each stop:

1. Are you interested in my product.

2. If yes, what kind of volume

3. If yes or no, I want to get contact information. Name, number, who is the final decision maker, etc. Even if they are not interested now, they may have a need later.

4. If they have a similar product, without offering a lower price, how can I get them to use my product instead.

5. If they have a need for something that is close to what I offer but not exact, what can I change in my product to fill their need.

I have never been in sales before so if anyone has any suggestions, I would love to hear them. Thanks!!

 

[Money mania]

Hey Greg,

In regards to the sale side, here are a couple suggestions. One find out what the potential customer is finding as a issue with their current supplier of the competitor product (shipping delay,cost,customer service issues, min. order amount, etc) If for instance your competitor has min order 25k units and they feel better buying 10k units, can that work for you in order to get the business.

Understand the customers business clearly prior to meeting with them, if you can create a solution without them thinking about it ahead of time, they will be amazed you are thinking of them vs just making a buck, create that long term relationship.

One more thing I have found HUGE, get that customer to become your company cheerleader to all their fellow business associates once you are doing business with them, a warm referral/lead is HUGE.

Just my 2 cents.
MM

 

[andviv]

I have never been in sales before so if anyone has any suggestions, I would love to hear them. Thanks!!

Passion sells.

You sound like somebody that believes in the product and its benefits. After that, simply have a conversation. Do not overwhelm them with features, let them do the talking and listen, liste, listen. Ask questions. Have them do most of the talking.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Redwolfe]

Thanks for posting this, Greg. It isn't easy to stick your neck out there, and to do so publicly, but it is a big inspiration. Good luck!

 

[100k]

Wait, Greg B is the "girl" vigilante was talking to ??? Erhmmm....

Any ways, well done for taking action! Go get them girl!

 

[Greg B]

I created the below form to take with me on customer visits. This will be used mainly to keep me on track during the visit and a way for me to take some notes to be used for later. I want to make sure between getting excited and/or nervious, I don't completely forget everything that was talked about during the visit. Might not look so professional to call someone up and say hey, I enjoyed our visit but I totally forgot everything you said.:smash:


I have my first 5 stores picked out. Due to work, I will not be able to get out until Monday. I may try a couple tomorrow but my gut says the people I need to be speaking to will not be there on Saturday. Even if they are not there, it will be a good experience and confidence builder for me.



Customer (store) Name_______________________ Visit Date____________


Decision makers Name________________________ Phone_______________


Of our products, what ones is this customer interested in? _____________________


What type of volume would you project? ___________________


Is there competitive products in house (Y/N) ___________


If yes, what is it? ________________________________________________________


What can I do differently that your current supplier is not or will not do? ___________


_______________________________________________________________________


Are you able to give me one contact of someone you know that may be interested in my

products? _______________________________________________________________

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[andviv]

Is there competitive products in house (Y/N) ___________


If yes, what is it? __________________________________________________ ______

If not, why not? [[too expensive? no market? clients never asked for it? too ugly? not my niche? etc etc etc]]

I may try a couple tomorrow but my gut says the people I need to be speaking to will not be there on Saturday. Even if they are not there, it will be a good experience and confidence builder for me.

Still, the attendants and managers in charge can give you their opinion and feedback. Not a bad plan and, in fact, great to talk to them so next time you show up you can probably use their names and say to the decision maker "I talked to your manager, joe, and he thought it was not a bad idea, what do you think?"

 

[Red]

^^^^ This is why I love this forum. ^^^ Complete strangers, giving input, help, guidance & their valuable time to help others succeed. I love it. Keep up the incredible work.

 

[Greg B]

First off, thanks for all the positive replys. It's reinforcing to see like minded people agree you are taking the right steps.

I am listing my short term plans below. I am giving myself to next Wednesday to complete.

1. Obtain pricing on my raw materials. I know who and where the vendors are so this should not be to difficult. My vendors will mostly be located in my region. I will need to establish freight cost as well. This is number 1 for me as I need to nail down my pricing and confirm my margins.

2. Packaging - I need to find a vendor, get pricing, determine leadtimes, etc. This will also be needed to establish my cost.

3. I want to confirm the need for this product by establishing additional potential distrubution channels. I plan to approach 5 additional end users to discuss my product and receive feedback.

4. Lastly and maybe most important. I need to stay visible and in contact with my first lead as I work toward a signed PO. I believe he will want his first delivery sometime in March. This gives me time to prepare but I also know how much can change in that amount of time. If I can get a signed PO even for a partial order, I would get the confidence to start getting equipment, etc.

Update on my progress:

1. I have solid pricing on my raw materials. Freight of my raw materials is a little harder to determine because as of this point, I have no place to manufacture my product. I did use some assumptions on a general area that has allowed me to get a close freight cost.

2. I have found packaging vendors both in the US and china. I need to research what type of info I must provide on my packaging if any. Cost is very competitive across the board. Leadtimes are longer than I expected and minimum orders are bigger than I had hoped for. Not a deal breaker, I just need to make damn sure I can get this sold before making the decision.

3. I did approach 5 end users that would use my product. I was concerned about meeting with a potential customer and then blowing the opportunity by not being ready to deliver right away or for some other reason.. I conducted my meetings from a product potential standpoint just looking for feedback. Also, I made the decision to drive 2 hours away from my location to approach potential customers. I feel like I can get the same feedback from them without potentially damaging myself with a local. I had positive but mixed reviews. All five liked my product with no issues. Two did not offer anything like it and said they are interested. One offers a simular product but is unhappy with the supplier. (No reason given) The other two have a simular product that they are happy with but would talk with me on price which is not something I am willing to do.

4. I plan to meet with my first contact this week in order to stay in front of him and work towards a signed PO.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[andviv]

that they are happy with but would talk with me on price which is not something I am willing to do.

Great decision. You probably don't want to go for a price war.

 

[Tom.V]

I love it! Your tenacity and will to move forward by any means possible are both inspirational and motivating. It looks as if you have the ball rolling in the right direction and are not slowing down anytime soon. I wish you the best of luck in your venture and may it be both a successful and enriching experience!

 

[InMotion]

Any updates GregB? How did things go?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Toao]

First of all I like the concrete action that you took and give you speed for that. I really love reading that people on here are not only talking bla bla but get things on track and keep going forward. Sadly in personal I don't know people that act this way apart from myself (must be a rare species). Considering your last post:

3. I did approach 5 end users that would use my product. I was concerned about meeting with a potential customer and then blowing the opportunity by not being ready to deliver right away or for some other reason.. I conducted my meetings from a product potential standpoint just looking for feedback. Also, I made the decision to drive 2 hours away from my location to approach potential customers. I feel like I can get the same feedback from them without potentially damaging myself with a local. I had positive but mixed reviews. All five liked my product with no issues. Two did not offer anything like it and said they are interested. One offers a simular product but is unhappy with the supplier. (No reason given) The other two have a simular product that they are happy with but would talk with me on price which is not something I am willing to do.

Try to find out why he is unhappy with his supplier. If he is not willing to tell you ask something like: What should a supplier be like to perfectly assist you in your business ? Or: What can I do to support you selling the product ? He then definitely will tell you about his pain point with his supplier. When he says I need more reliable suppliers or I need delivery on time you know where the problem is and learn what your job is in the future business relationship.

Hopefully we get an update soon, I'd love to read about your successes

Greetings from Germany,

Toao

 

[andviv]

Hi Greg, I hope things are moving along with this. I know the holidays can easily screw up all schedules and progress. How is it going with your efforts?