TL;DR: Started a manufacturing company. None of my competition has been able to service the largest retailer in the field. I know I can. I have a meeting with them on Wednesday to demo my products (they reached out to me, VP product management & commercial sales saw my Insta ad) and potentially roll me out to 100+ stores. Need advice on what to prepare for a meeting like this and how to handle negotiations.
A while back I made a post about a manufacturing company I started going after a specific niche. Two days ago I was contacted by the largest retailer in the market to meet on Wednesday to present my products and potentially rolling me out to all 100+ retail locations.
The market:
The opportunity:
What Happened Over the Phone
- When the VP called me, she told me that they've been wanting to get these products in their 100+ stores but have only been able to sell the Chinese products "which suck" because of the above reasons.
- She called knowing that I'd solved the logistics problem for the $17 and hopeful I knew how to solve the scalability issue of the $55.
- Conditional on a successful product demo on Wednesday, she very briefly mentioned they'd be willing to "help me scale" and not to talk to the other retailers b/c they want exclusivity.
My Situation (Need Advice Here!!!)
- The exclusivity condition is a poisoned apple in my opinion. I'm willing to settle on retail exclusivity as long as I maintain rights to selling through online channels (how I'm currently selling) because I know I can eventually grow online to keep me from relying on any one source of sales.
- Helping fund me to meet their demands is MAYBE a poisoned apple as well. This company has a history acquiring similar companies to me, gutting them, then outsourcing to China. I have no doubt if I let them even get a vague of how I've solved the manufacturing problems they'd find a Chinese manufacturer to replace me in a heartbeat. On the other hand, if they want to eventually buy me out once my products have proven themselves, then take it to China, then heck yeah!
- I DESPERATELY WANT but don't need this deal. Manufacturing has ridiculously high barriers to entry with a winner-take-all effect due to economies of scale, much less a small market with established players like this. The cash injection from a deal with them would solve 99% of my problems. I know I can still pull it off without them so I am prepared to walk away from a bad deal, but my health has taken a significant hit just getting the business to this point.
I'd appreciate any advice on how to prepare for the meeting on Wednesday and what to expect.
A while back I made a post about a manufacturing company I started going after a specific niche. Two days ago I was contacted by the largest retailer in the market to meet on Wednesday to present my products and potentially rolling me out to all 100+ retail locations.
The market:
- Chinese manufactures: Wholesales @ ~$2-3 and retail at $7. Quality is bad.
- US manufacturer: Retails at $55 and has had a monopoly for about 2 generations for the premium stuff. Has a cult following for his products.
- EU manufacturer that created a budget premium version at $17 retail about 8 years ago and has had an uncontested monopoly at that level since.
The opportunity:
- US ($55 product) manufacturing process is inherently not scalable after a certain point for that product. Only sold in limited quantities.
- The EU ($17 product) are not currently being sold retail because of logistical issues.
What Happened Over the Phone
- When the VP called me, she told me that they've been wanting to get these products in their 100+ stores but have only been able to sell the Chinese products "which suck" because of the above reasons.
- She called knowing that I'd solved the logistics problem for the $17 and hopeful I knew how to solve the scalability issue of the $55.
- Conditional on a successful product demo on Wednesday, she very briefly mentioned they'd be willing to "help me scale" and not to talk to the other retailers b/c they want exclusivity.
My Situation (Need Advice Here!!!)
- The exclusivity condition is a poisoned apple in my opinion. I'm willing to settle on retail exclusivity as long as I maintain rights to selling through online channels (how I'm currently selling) because I know I can eventually grow online to keep me from relying on any one source of sales.
- Helping fund me to meet their demands is MAYBE a poisoned apple as well. This company has a history acquiring similar companies to me, gutting them, then outsourcing to China. I have no doubt if I let them even get a vague of how I've solved the manufacturing problems they'd find a Chinese manufacturer to replace me in a heartbeat. On the other hand, if they want to eventually buy me out once my products have proven themselves, then take it to China, then heck yeah!
- I DESPERATELY WANT but don't need this deal. Manufacturing has ridiculously high barriers to entry with a winner-take-all effect due to economies of scale, much less a small market with established players like this. The cash injection from a deal with them would solve 99% of my problems. I know I can still pull it off without them so I am prepared to walk away from a bad deal, but my health has taken a significant hit just getting the business to this point.
I'd appreciate any advice on how to prepare for the meeting on Wednesday and what to expect.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
