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NOTABLE! You’re not selling wholesale?

Discussion in 'Business Models, Niches, Industries' started by Scot, Jun 6, 2018.

  1. LynetteP
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    LynetteP This will be car photo when I get a rocket again Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Can you give any more details on how she got 200K in orders at AmericasMart? I really need a shot in the arm like that!
     
  2. CareCPA
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    CareCPA Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Depending on how aggressive you want to be, and how badly they need your product, you can also implement a penalty if payment isn't in hand in 30 days.
    Actually collecting the penalty could be just as difficult, unless you report to D&B or similar.
     
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  3. MidwestLandlord
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    MidwestLandlord Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    C-stores typically want 40% at minimum, unless it is a name brand item that does tremendous volume (think Coke, Pepsi...and those usually have kickbacks where the initial invoice has a lower margin, but after kickback monies and shelving rentals it is much higher)

    Of course that doesn't include vice products like alcohol, tobacco, and vape.

    40% will be a hard sell though. Like I said, that's minimum. 50% is more realistic.

    Safeway pays me in 45 days as well, even though I am 2% 10 Net 30 with them. 45 days seems to be typical for the larger chains. They've NEVER paid me in time to get the discount, and seemingly don't care either.

    ALL of my independents are on NET 10, and not a single one has complained about it. All pay within 15 days, so it's a little sloppy. After 15 days I charge 2% monthly, I void all referral monies (I give $25 invoice credits for referrals), and suspend all deliveries until paid.

    I have waved late fees for a chain with multiple locations though, where they paid on time for all but one location because that store manager kept losing the invoices/delivery tickets and the corporate office didn't know they owed me money. I solved that by sending a duplicate invoice for that location directly to the office for all of that location's deliveries.
     
  4. Scot
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    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Getting new customers through email lists

    I'm going to lay out my current strategy to build up my customers through an email campaign. This current strategy is untested, as I am starting it in 2 days. Here's what I have done and will be doing with it.

    The goal:
    To get a larger footprint into independent stores, i.e. "mom and pop" type stores.

    The method:
    Build list by using a google maps scraper, targeting keyword business types. Build automated email campaign to create leads.

    The hypothesis:
    I'm going after low hanging fruit. I am taking a regional approach, targeting my own state and the two closes states. If I can build an automated funnel, I can hopefully get a 5-10 new customers out of this with relatively little work.

    The follow through:
    Add customers into a CRM, probably Hubspot. This will allow me to follow up on orders, set reminders for reorders and new stock.

    About 70% of my list that I've built does not have email addresses attached to the business listings. I will sort these out and target the most likely business types to stock my product and start a phone call campaign. Buying customers will be added to the CRM flow. If I can get a contact email, they will be added to a separate automated funnel which will try to convert warm leads.


    To build the email list I used BotSol from botsol.com However, I imagine most google maps scrapers will do the trick. The main goal for mine is to obtain email addresses, so you'll want a scraper that specifically targets emails addresses. This is important, because google maps does not list this. Your scraper needs to actually go to the website to pull the email.

    A trick I do is to search key term, in my case "natural food stores" and do it by area. I googled "list of cities in Florida by population" and just went down the list. "Natural food stores near Jacksonville, natural food stores near Miami, natural food stores near Tampa, etc etc" Combine the whole list into one master one.

    Now its time to clean up your list. First, add filters to your headers. The first tab I went to was business category. You'll find a lot of random store categories that don't match yours at all. For example, google pulled a lot of pet food stores, beauty salons, pharmacies, gyms. I delete all those entries. Next, for the sake of this campaign, targeting big box stores was not the goal. So, I sorted out store names. Delete all the big stores, Walmart, CVS, Kroger, Riteaid, Wholefoods, etc etc.

    After that, do conditional formatting. You'll want to highlight duplicate entries in the store names tab. This way, if say "Tom's Natural Foods" has 5 locations in 3 different cities, it will highlight all 5. You can sort out by cell highlighted color. Remove duplicates. For the purposes of this list, you are emailing the stores, so unless each store has an individual email address, delete duplicates.

    Next, sort A-Z by email address. This will bring all the listings with an email address to the top of the list. I went through and found listings with multiple emails. I would create a duplicate listing for each individual email. The thinking behind this is, if it lists bob@bobsfoodmart.com, susie@bobsfootmart.com, tim@bobsfoodmart.com I don't know who the best contact is, so why not email all three? Sorting them into individual listings will make it easier to add to your email platform later.

    After this, I sift through the listings with emails to make sure everything looks kosher. I found about 10-15 listings I'd missed that just didn't fit my target, i.e. delis, restaurant, juice bars.


    I'm using MailChimp for my emails. Its free and simple. My campaign flow looks like this.

    First email:
    Basic email, 3 lines, plain text. "Hey, is this the correct cantact for the person who makes buying decisions for your store? I'm Scot, owner of BLAH BLAH Co. If not, can you please forward me to that person"

    Second email condition : If contact did not open email 1

    Follow up, plain text, a little longer. Ask similar question, change up the subject, add a little more info about your business/product. Keep is less than 2 paragraphs.

    Third email condition : Follow up 3 days

    Start marketing, add product info. Add graphics. Make this a sales piece, get creative.

    Fourth email condition : Send 2 days later

    Get crazy. Lost of images, marketing, sell sheet. If they're not going to respond to you, last ditch effort to wow them.


    That's it for now. I've got 200 emails between Florida and Georgia I'm going to plug into this system on Monday. We'll see how it goes.
     
  5. MidwestLandlord
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    MidwestLandlord Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    Surely you don't mean 5-10 new locations after all that?

    I'm running about an 80% success rate on new retailers, in the same general category. I get 8 of 10 I approach. I'm selective on who I approach though.

    So...in an area your size, you should gain much more than 5-10 locations (assuming you approach retailers that are a likely candidate, which may be hard to know without physically visiting the location first)

    3 states, approaching mom & pop grocery, I would think more like 50+ locations gained. (let's say 10% of 500 total approaches to account for the type of marketing you are doing...i.e, not in person)

    Also, your closing rate should increase as you adjust who you approach AND adjust your marketing to include the success your brand is having. The more locations you have, the easier it is to gain even more. (it's far easier to get your 20th location than it is your 2nd)
     
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  6. Scot
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    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    I only expect that from a lazy automated email campaign.

    Once I start sitting through the list and building a targeted calling campaign, I definitely expect the close rate to go significantly higher.
     
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  7. MidwestLandlord
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    MidwestLandlord Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    Just wanted to make sure you're thinking big!

    I'm gaining about 2 retailers a week on that one brand in the same (ish) category, and your town has 40% of the population of my entire state...
     
  8. Xolorr
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    Xolorr Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    Crazy useful thread!

    Applying all of this to my online store now
    I'm going to follow the same process as you with the automated emails, except I'll send them out manually, purely because of the Mailchimp footer, as well as I have very few stores to reach out to (+-15).

    I'd like to know your opinion on the footer? It seems against mail chimp TOS to scrape emails, as well as it being VERY obvious to the person you're sending it to that it is an automated email. Going to investigate other options for this.

    (I've deleted out all sensitive information, but it lists your email address and your address in the footer aswell)

    IMG_6285.PNG

    My flow will probably follow this:
    - Manually send out a templated email to stores.
    - Schedule follow-ups (following your mailchimp flow) using a CRM
    - Stores which show interest / buy wholesale will be added to a mailchimp list for promotion, education, media etc.
    - Call all stores at the end of the flow, whether they show interest or not.
     
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  9. Scot
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    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    As far as Mailchimp’s TOS.. what mama don’t know, won’t hurt her. Since you’re sending to 15 ish emails, the odds of one or more reporting you for improper emailing are super rare.

    If you dumped 1,000 emails, yes.

    However, plain text emails may not be a bad idea either. An app like boomerang for gmail sets auto reminders to follow up. It all depends what you want to send via email.

    If your end goal is a phone call, using emails to make this a warm contact, then I’d just plain text via regular email.
     
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  10. Scot
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    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    As a follow up to that, I only expect this email campaign to have a 1-5% conversion rate. This was simply a “do a few hours of work for low hanging fruit.”

    If you only have 15 targets you’re going after, you should be picking up the phone or going in person if you really want to convert these
     
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  11. Xolorr
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    Xolorr Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    Did the 15 plain-texts after I replied to this.
    I then went to gym for an hour, and I've had 3 responses of people interested already.

    I know its small fish compared to what you guys are doing, but baby steps!

    Thank you Scot!
    Rep+

    Now it's time to seal the deal :)

    Btw, I'm using Zoho Mail (Because its free for a custom domain email), and it has some great features built in. I use the templates and the reminders, yet to explore the rest.
     
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  12. amp0193
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    amp0193 Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    quickmail.io is an automated email system that sends out plain text emails with follow up sequences from your gmail.
     
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  13. Xolorr
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    Xolorr Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    Update:
    Just closed my first wholesale deal, T- 4 hours after reading this thread.
    Great one @Scot ⚡️
     
  14. Scot
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    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    BOOM. Good job taking action!

    Rep+++
     
  15. MoreVolume
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    MoreVolume Bronze Contributor Read Millionaire Fastlane Speedway Pass

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    Im creating a new wholesale information sheet, and confused as to what terms to use.

    Are there official terms for:
    - Wholesale Discounted Percentage (the % that the product is discounted by)
    - Markup Margin (% margin for the store)

    ?
     
  16. amp0193
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    amp0193 Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    I've got 5 columns: Wholesale, Retail (or MSRP), MAP, Profit, and Margin.

    Really all you need to get started is Wholesale Price and Retail Price.
     
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  17. MoreVolume
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    what is MAP?
     
  18. CareCPA
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    Usually it's minimum advertised price. Keeps your retailers from undercutting each other, and maintains your brand's image.
     
  19. Scot
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    As posted in my progress thread on the inside, I will repost this here as well.

    ---

    Here's @MidwestLandlord method for converting B&M. All credit goes to him.


    Step 1: Identify appropriate stores
    Pick a geographic region and google maps scrape businesses that fit your target customer. For me, natural food stores. Clean the list up, and focus in on a small radius area. For me, its the tri-county area. Go to each store's website and see what their product offerings, store, and clientele look like. You want to pick stores that will be a good match for you. For example, stores that are super hippie, sell essential oils, and have a strict non-GMO policy got cut from my list.

    Step 2: Build a sales packet
    Put together a nice folder to mail to these stores. I went to Vistaprint and made customer 9"x12" presentation folders with my logo on them. Include an order form, a cover letter telling your story, any sell sheets you have. Lots of color, lots of pictures.

    Mail these to each store. Important. These will get looked at and then thrown in the trash.

    Step 3: Call the stores
    Estimate 2-3 days after the envelope should have arrived and call each of the stores you sent a mailer to. Ask for the manager/owner/decision maker. Tell them you're from XYZ company. "Oh yeah, I've heard of you" This is now a warm contact, not a cold contact. Keep it short, simple. Your goal is to schedule an appointment to come into the store to present your products. Let them know their time is valuable.

    Step 4: Go to the store, close the sale
    Bring a copy of that same sales packet they probably threw away. Bring samples of your products. Sell your brand and ask for the business. This one I can't coach you threw, this is up to you. If your brand is something with high velocity, sell them an auto replenish order. i.e. We will deliver 2 cases the second Friday of every month. If your product is a little slower like mine, sell however many cases in the first sale, and keep in contact for reorders.

    I am sending out my first round today, I will update in a week or so to let y'all know the conversion rate.
     
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  20. Paul David
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    Excellent thread @Scot and thanks to @amp0193 for posting the link in another thread and also contributing.

    At what stage of the brand launch process would you target wholesale customers?
    I'm still at early stage (waiting for samples) but i'd expect to have stock in the next 2-3 months. During that time i've been running facebook ads to targeted customers in order to generate a mailing list i can use for product giveways for feedback, amazon sales velocity etc. I've also set up a shopify store although it's not live as i don't have any product images yet.

    Would you wait for some market validation before approaching wholesale stores to help close the deal? Ie amazon reviews, website reviews etc.
     
  21. Scot
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    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    I started the minute I had actual product in hand.

    For your situation, and most others, this question answers your first one.

    Always validate your market first. You may need to pivot or change things before you make it to mass market.

    In my instance, there just isn’t anyone making this product for a growing market. But, if you’re launching into a crowded or well established market, you need to make sure people are willing to vote with their wallets first.
     
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  22. njord
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    njord Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

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    Such a great topic!
    Iv learnt so much here and it has given me new ideas.
    Right now Iv just started with FBA and I am expecting my first shipment to arrive at amazon on november 30th.

    Im really exited to try out whole sales as soon as i have validated my market!

    I feel we are at a simar spot only I havent started FB adds yet, why start before your product launch? I was planning to do it as soon as my product is avalible so my customers dont have to wait.
     
    Last edited: Oct 10, 2018
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  23. Paul David
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    I have started building an email list via facebook ads so that as soon as the inventory hits Amazon i will already have a list of 20,000 targeted customers who i can offer my product to immediately at discount price. This will increase Amazon rank via sales and also reviews.

    Previously when i have launched products on Amazon i have waited to build a list until the product is in Amazon. One of the other reasons for launching this new brand is that my other products are in different niches which makes it harder to cross sell. I have to build new lists each time. This brand is going to be ultra niche targeted.

    As Amazon gets more saturated it becomes harder to launch products on Amazon. It's therefore very important to have a pre-sold list of potential customers.
     
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  24. Scot
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    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    And once you both validate your market, get good reviews, and show a documented sales trajectory, all of that can be put into a marketing effort for wholesale.
     
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  25. njord
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    20,000 ? that sounds like alot to me how much dit it cost you?
    Im new to the hole fb adds thing and need to look it up
     

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