You’re not selling wholesale?

[Paul David]

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.

 

[njord]

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.

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

 

[jcvlds]

At the moment i have 6000 from last 4 weeks which has cost me around £800.00 in facebook ads.
I'm running a free competition to win a 4 night holiday using tool called Upviral which encourages customers to share the competition on their social media pages in order to be given extra entrees into the competition therefore more chances of winning. Holiday is going to cost me around £800.00 on top.

Therefore it's going to cost £3000-4000 for 20,000 leads but long term it will be worth it.

If you have anymore questions please feel free to PM me. I don't want to take @Scot thread in a different direction!

How do you ensure that most people on that list are actually interested in your product and will be likely to buy later on, rather than just giving up their email because they are more interested in winning a free vacation?

I would give up my email for a free chance to win a 4 day holiday without caring at all about whatever your product is.


Sent from my iPhone using Tapatalk

 

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[Wolfman]

I only have 1 launched right now. However, I’m waiting for the rest of my line to launch next month before I push for more stores.

Hi Scot, I'm not sure about what your product is but let's say hypothetically I'm selling a unique woman's shoe. I want to wholesale to B/M and LLBean and London Fog and Macys and also get on board w/ Amazon. Do I need to strategize about not trying to sell to competing outfits? Second, since I've never done this, is there an ideal ratio? (I've heard it's best not to put all of your eggs in the Amazon basket.) Thanks for doing this thread man, Greg

 

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[Wolfman]

I LOVE this photo. I remember you smiling when you showed it to me on your phone, and I remember your wife's sparkle in her eye during the discussion. You knew you were on the edge of this finally happening. There's so much I could unpack just within the frame of this photo itself, but people would be so wise to understand the whole story behind the journey that made this photo possible that I am taking this thread now to (at least) notable so that people have the opportunity to discover your story through looking deeper at that photo and discovering the path that lead you here.

I will read through the thread later today and post some comments.

 

[Wolfman]

Hi Vig, That must be a mystical photo with lots of hidden meaning. (On its surface it's also a nice pic.) Us newbies can always use a bit of inspiration so please share.

 

[Wolfman]

I am so excited about this thread! I have a book (think more "airport gift shop book" than "barnes & noble book") that I am hoping to approach Urban Outfitters, Anthropologie, and some smaller gift shops with. I hadn't thought to pay a VA for this stuff.

Apparently Anthropologie does all their non-clothing buying per store so I'm trying to go local first to build credibility. Any thoughts on that?

Hi Cat, So I looked at Anthropologie's online catalogue. Hypothetically let's say I have a better/cooler umbrella than their $32. Could I go in and pitch the owner on selling my umbrella in his store as opposed to the one in their own catalogue? (Good product for Portland. hehehe) Greg

 

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[Wolfman]

I mention very often in this thread what my product is and what market its in.. grocery.



If you go back and read the thread, you'll see the picture he's referencing in the thread...

Go back and read the whole thread, because I feel like you're missing a lot of the points here.

Why would you try pitching to LL Bean or London Fog? They're brands, not stores. They don't wholesale other company's products. Unless you're referring to a private label deal, which this thread is not about, and I cannot provide any guidance on.

You don't wholesale to Amazon, so no need to pitch them.

Your ratio will be completely unique to your business. I prefer to have a higher ratio of brick and mortar vs ecommerce because of the logistical costs for shipping direct to consumer for my products. That's a decision you'll have to make yourself but can maybe base it on what other comparable companies are doing.

Hi Scot, Thanks a lot for clearing up some stuff that I should have learned the first time through. Sorry for missing your product and other stuff.
When I go to LLBean online catologue, outdoor accessories (possible fit for my product) more than half the items are not branded by LLBean. So those are private label deals?
I'm probably missing something again. What is the difference if I went to a brick and mortar LLBean, walked into the outdoor accessories dept. and bumped into their purchaser?
For example, almost all of the knives they sell are outside brands. What's the channel for the manufacturers to get their product/brand into LLBean's store/catalogue?
This is important for me because I will want to build my own brand for an exit down the road. Thanks again (and sorry again), Greg

 

[yungmillionaire]

Hi everyone,

I am a bit confused. Do you guys brand your own products and wholesale it to stores? Or are you wholesaling existing brands to stores?

 

[Wolfman]

Hey guys, I got my first large order but I'm worried that it's a scam @Valor @amp0193 @Scot

The buyer wants to buy 200 units, pick up and ship it to Argentina. He provided an address which does not lead to an address but a house. His name is very generic - Paul Smith. What type of payments should I take to ensure that I do not get scammed? He said he can pay by credit card. Can this be a stolen credit card and later, charges be reversed?

Hi,
Old school...call the guy or have him call you and follow your instincts after asking a couple of questions.
Greg

 

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[Wolfman]

Certified funds only. Copy of valid ID card. Signature receipt, and only HE can sign for it.

How about both? Get all that good stuff and still talk to him. I told you I'm old school. There are guys a lot smarter than me and you that can probably figure out how to forge a "valid ID card." I believe, yes, you're instincts are correct and you'll get paid. By the way, congratulations on the big step in the right direction.

 

[Mark_Entr]

Here’s an example of Distributor margins.

Widget A has an MSRP of $14.99

Store wants a 35% margin - $9.74

Distributor wants 30% - $6.81

Thanks a lot for sharing the info, but I believe the math has a common mistake of calculating the percentage off the end price instead of the base price:

Item final price = $14.99
sold it to retailers at $9.74 so they make a 35% margin.

but:
if the store wants a 35% margin, and we sell to him at $9.74
then his profit is: 0.35 *$9.74 = $3.4
meaning he must sell at $9.74 + $3.4 = $13.14
which does not match the $14.99 we wanted as final retail price

 

[Matte]

I just got in contact with a wholesale company in my country, they asked me for a 50% +50% discount on the retail price minimum.

So that means if the price is 20, I would need to sell to them at 5?
Is that normal or are they asking too much?

 

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[Temerity]

Very useful thread. I know it's a few years old, but wondered if anyone could be more specific about a couple of things:

1. Who makes the terms in a wholesaler arrangment? Who provides the contract? I think bigger retailers may do that, but in the case of smaller ones, who should submit agreements and expectations? Something legally binding is important here, just not sure how to approach that. Are there lawyers who can help, or is that even necessary in your experience?
2. What should be considered in an agreement? I know margin will be huge, but what other important points should be pondered?
3. Since I am only marketing to local businesses, I will act as my own distributor. Will advertise it as free shipping. Any other considerations I should be aware of in that regard?

Thank you!