Why are so many new products failing? Usually for different reasons. Businesses are often so attracted to their ideas for new products that they do not research or know how to interpret research. Sometimes prices or distribution channels are wrong. Sometimes advertising does not communicate. Successful product launches result from an integrated process that is highly dependent on initial problem solving and research. Surprisingly, the best price and best value is at the bottom of the retailer priority list.
Have a reputable track record
- “One thing entrepreneurs should bring to the table when trying to get a new product in a department store is solid evidence of a serious roadmap. If you are a startup company, a great retailer will not give you a second look. The entrepreneur must also be prepared to adapt to any request from the supplier, such as product improvement or price adjustment.” Andrew Schrage, Money Crashers Personal Finance
Offer a shipping contract
- If the business is owned or held by one or two people, you have a good chance of getting your product on the shelves by offering a supply contract, which means the seller will not have to take any initial financial risks. Storing your goods, but still making money, is a great way to test and prove what your customers will buy and everyone can make money at the same time.
Build brands, not products
- Many business owners have developed great products, but often forget that consumers do not connect to products, they emotionally connect with brands. Build a brand around their product in order to compete (or have credibility) in a department store. See that you’re building more than just a functional product – you’re committed to building a brand.
- Ideally, you should have revenue or pre-orders and if your product sells well, you stand a good chance of getting into a retailer. It’s also important for entrepreneurs to bring high-quality prototypes and packaging. Crowdfunding is a great way to get money from customers to help them achieve these goals.
Have a turnkey wholesale offering
- Department stores carry thousands of products, and if you sell your product, you must certainly demonstrate it has good credibility. Entrepreneurs cannot forget that department stores have very specific rules to cooperate with suppliers, make your product easily adaptable to different needs.
Make sure you can deliver
- Big Box Stores are looking for a partner who can handle and deliver their orders. You must have the finances and ability to complete orders completely and in a timely manner. All you have to do is make sure that the processes are designed so that you can call your manufacturers and dump them as fast as necessary.
Create a network before you need it
- Like everything else, you know who counts. If you already have connections in a department store, it will be much easier for you to organize a meeting. This will not be enough to seal the deal, but having the right connections will certainly ease the process.
Focus on customer service
- Look at the competing products that are sold in the distribution channel of your product, then read the reviews, and it’s amazing how much positive feedback you receive from users when you listen to their complaints and make a gesture to change your product. If you are trying to compete with the price, customer service is important to establish your product as a value purchase and not as a cheaper option.