Eskil
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1) What tips do you have for people who have a product and are approaching retailers?
2) What questions can they possibly make me, so I can prepare for them?
3) Which objections might I face?
3a) Any tips on how to go through them?
4) Tips on how to set a partnership?
I can't speak for the wine business, but some general answers would be;
1) Try to put yourself in their frame of mind. If you were the one reaching out, they will always think "what is in it for me?" so you should make a good pitch and have your numbers and facts straight for why this would be good for them.
2) Obviously they will want to know your wholesale pricing, and in many cases whether or not you offer any sorts of discounts for larger volume purchases. For instance, if the regular wholesale price is $20 at 1,000 units - if they order 5,000 what discount can you give them? (Volume discount tiers are often used for this). They will also want to know freight costs and who will pay for what. For example, you might agree that you as the product owner can pay for the freight from your distillery to a warehouse or point of transfer, but they will cover the cost from that point to their distribution center or store.
Other important things they will bring up will be:
- What will be the return policy, if any?
- What warranties are offered?
- Will they have exclusive rights to their region, or will you also be taking on other resellers in the same area (who might compete with them). If exclusive, you could negotiate better terms in your favor.
- Where can they resell the product? Not relevant to wine maybe but for physical goods, should they be allowed to resell the goods in online marketplaces such as Amazon or eBay?
- What will your shipping and lead times be like? They will want to know what to expect for the sake of planning their purchasing and inventory
- What payment terms will you offer them? Net 30? More, less? A percentage upfront?
3) Objections could come from one or more of the above, if you are unwilling to budge on some terms or if the deal seems too unbalanced in your favor. Again, try to think what they are after but also look after yourself so you don't get screwed. In many cases it might be good to start out a 'trial' relationship where you both agree to do one or two test orders. They will try out some sales in a few of their stores, and you can then together review how things went before you start scaling up things.
4) Draft out a good wholesale agreement that fits your needs. You can find some decent templates online to use as a starting point. Make sure it is dated and signed by both parties, and defines how long your trial period will be, and whether there will be a time or money commitment involved.