TL;DR version - Have the #2 CPG company in my market discussing my business in their national strat planning before I even officially launch. It's not a commitment yet but I think I'm on to something here. Swing for the fences at every bat; you never know when you'll be given a meatball.
Business Back Story
The Basics
I've been grinding away on a project for the past 2-3 weeks. It's made up of a baseline B2C subscription as the main front-end presence. On the back-end there are also 2 different B2B angles that are really the interesting part, and potential for a second B2C model.
The Angles
The Grind
Like many of you, I'm doing this solo in the evenings after my 9-5 and family obligations. It's been a lot of work and there's a lot more to go before I'm ready to launch. Thankfully it hasn't been capital intensive up until this point, only time intensive.
I need to have the first two angles at launch in order to differentiate myself in the space. I've been building the online and offline components in parallel: the ecommerce site, setting up all the necessary bits for online presence (social, analytics, ads, branding), designing packaging for the shipments, pricing strategy, marketing plans for both the B2B and B2C angles, etc. Why do I need all of this? Read on.
Business Relationships
The third angle would be awesome to have because of the direct manufacturer relationship; so that's where I started. By trying to establish relationships with the CPG manufacturers first rather than deal with their distributors I can launch with angle #3, attempt to sell them on angle #4 and also give me more margin for the products in my storefront. Yes, it's a slower road in terms of getting the store online but I'm convinced the model has merit. My business can survive without them, but might as well try to jump start the business, right?
The Now
Caveat - Dealing with big multinational corporations is hard. Pitching a new business relationship and model is even harder. I've worked at a CPG brand before. They don't like dealing with 'nobodies', and if you don't have your shit together, you're quickly escorted out. The #1 in the field directed me to distributors right away and won't entertain the idea of a direct relationship. The #3 has been slow to respond at this point. Smaller players are hit and miss.
But yesterday that #2 guy gave me hope!
When I first reached out to them I got bounced around from gatekeeper to gatekeeper (typical) until someone reached out internally to a Director of Marketing. They sent her my contact details and she returned my call the same day.
Same day? That's surprising...
We chatted for 45 mins about what I was trying to do and what my ask was of them. She wanted me to email her a description of the model so that she could mull it over and discuss it with her VP. Later that night I detailed all the angles and benefits and send off the email. The next morning I got a quick 'thank you, we'll think about it' message and then things went silent.
The deafening silence
At this point I figured the deal was dead. I had already been stonewalled by the #1 guys so it was logical that the same would happen here. I left her a voicemail at the end of the week and never heard back. It just validated my assumption that they weren't interested.
A few days passed and I decided to send her a follow-up email. I enthusiastically explained the progress that's been made with building the business and explained I had some urgency in getting agreements in place so that I could launch. I detailed some of the other brands I am selling (distributor) and that I wanted her brand to be a part of our launch but if necessary I'd do it without them.
The next day I received an email back explaining that she and her VP found the concept interesting and that they would be discussing my business at their national strategic planning sessions happening in a few weeks time.
Ah, sweet validation!
Sure, it's not a commitment yet. It's not anything but 'further consideration'. Maybe it won't align with their short-term or long-term plans, but that doesn't matter! I can and will build this without them. There are enough angles that this can work as a business. The fact that they're even considering it now, before I even launch, is just icing for this cake I'm baking. If I can get them on-board it will build up those barriers to entry should others try to follow my lead. With luck, they'll agree and then I'll have an opportunity with them for angle #4!
Bottom Line: Don't be afraid to go after the 'big prize' first. Nothing says that you have to start small, particularly when there's little risk involved. Just don't be deterred if it doesn't come through; keep diggin'!
This post is long enough. Time to get back to work and make some more progress.
*(drops the mic)*
Business Back Story
The Basics
I've been grinding away on a project for the past 2-3 weeks. It's made up of a baseline B2C subscription as the main front-end presence. On the back-end there are also 2 different B2B angles that are really the interesting part, and potential for a second B2C model.
The Angles
- B2C is conceptually straight forward. There should be enough public interest there. I just need some marketing to start getting some sales. The local business can also help promote and sell this to their customers.
- B2B #1 helps local businesses expand, retain and reactivate customers. I've talked to several local businesses and they like the concept. Provided the price point works for them they'll be on board when we launch (I'm zeroing in on that price now).
- B2B #2 angle helps major CPG brands market their professional products to the local businesses.
- Possible B2C #2 - With CPG brands on board I can offer a 'branded' portal to my subscription service that only offers their products. It would appear to be a direct from manufacturer B2C experience (think Gillette Shave Club but run by a third party, ie me)
The Grind
Like many of you, I'm doing this solo in the evenings after my 9-5 and family obligations. It's been a lot of work and there's a lot more to go before I'm ready to launch. Thankfully it hasn't been capital intensive up until this point, only time intensive.
I need to have the first two angles at launch in order to differentiate myself in the space. I've been building the online and offline components in parallel: the ecommerce site, setting up all the necessary bits for online presence (social, analytics, ads, branding), designing packaging for the shipments, pricing strategy, marketing plans for both the B2B and B2C angles, etc. Why do I need all of this? Read on.
Business Relationships
The third angle would be awesome to have because of the direct manufacturer relationship; so that's where I started. By trying to establish relationships with the CPG manufacturers first rather than deal with their distributors I can launch with angle #3, attempt to sell them on angle #4 and also give me more margin for the products in my storefront. Yes, it's a slower road in terms of getting the store online but I'm convinced the model has merit. My business can survive without them, but might as well try to jump start the business, right?
The Now
Caveat - Dealing with big multinational corporations is hard. Pitching a new business relationship and model is even harder. I've worked at a CPG brand before. They don't like dealing with 'nobodies', and if you don't have your shit together, you're quickly escorted out. The #1 in the field directed me to distributors right away and won't entertain the idea of a direct relationship. The #3 has been slow to respond at this point. Smaller players are hit and miss.
But yesterday that #2 guy gave me hope!
When I first reached out to them I got bounced around from gatekeeper to gatekeeper (typical) until someone reached out internally to a Director of Marketing. They sent her my contact details and she returned my call the same day.
Same day? That's surprising...
We chatted for 45 mins about what I was trying to do and what my ask was of them. She wanted me to email her a description of the model so that she could mull it over and discuss it with her VP. Later that night I detailed all the angles and benefits and send off the email. The next morning I got a quick 'thank you, we'll think about it' message and then things went silent.
The deafening silence
At this point I figured the deal was dead. I had already been stonewalled by the #1 guys so it was logical that the same would happen here. I left her a voicemail at the end of the week and never heard back. It just validated my assumption that they weren't interested.
A few days passed and I decided to send her a follow-up email. I enthusiastically explained the progress that's been made with building the business and explained I had some urgency in getting agreements in place so that I could launch. I detailed some of the other brands I am selling (distributor) and that I wanted her brand to be a part of our launch but if necessary I'd do it without them.
The next day I received an email back explaining that she and her VP found the concept interesting and that they would be discussing my business at their national strategic planning sessions happening in a few weeks time.
Ah, sweet validation!
Sure, it's not a commitment yet. It's not anything but 'further consideration'. Maybe it won't align with their short-term or long-term plans, but that doesn't matter! I can and will build this without them. There are enough angles that this can work as a business. The fact that they're even considering it now, before I even launch, is just icing for this cake I'm baking. If I can get them on-board it will build up those barriers to entry should others try to follow my lead. With luck, they'll agree and then I'll have an opportunity with them for angle #4!
Bottom Line: Don't be afraid to go after the 'big prize' first. Nothing says that you have to start small, particularly when there's little risk involved. Just don't be deterred if it doesn't come through; keep diggin'!
This post is long enough. Time to get back to work and make some more progress.
*(drops the mic)*
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