Retail Question?

[Pachone]

Hey guys,

 

this post is NOT spam... I simply have a question in regards to getting a product distributed across canada.

 

A friend and I have stumbled across a very interesting idea/product, that could be sold in the Home Depots, Lowes, Home hardwares and Canadian tires across our nation. Its an Item used for Housing, from cottages to residential all the way to condos...

 

Our advantage is the price point as the product already exists, but we can sell it, and still make a very good $, for a FRACTION of the retail cost.

 

I was just wondering if anyone has ever distributed a product in the retail market before? Or HOW I would go abouts maybe contacting the right department at one of the large retail stores to get it distributed???

Any experiences?

 

I appreciate any advice that can be given!

 

OH, and I would mention the product... but that wouldnt be fun would it?

 

THANKS!

Pachone

[bigbuck]

Contact the purchasing department of one of the big box stores, say RONA (trying to keep it Canadian) and ask for an appointment with one of their category managers. One thing though, you need to be able to have a great deal of supply and will need financing for that, I'd speak to my bank manager if I were you to start arrangements for a business loan or line of credit. The big box stores want all your ducks in line before they will even think about doing business with you.

There is a lot involved, including the possibility of listing fees (you have to sometimes pay for the privelege of selling your product at stores).

You may need the services of a broker.

I know a lot of this because I spent my youth in the grocery business and understand it quite well.

[markiemark70]

Whatever you do make sure you talk to a lawyer first. If as you say there are already people making this product, rest assured they have people whose job it is to look out for competition on the horizon, and when they see you (as they surely will once you contact a big box) they will do everything in their power to crush you.

[Fang]

If it's a cheap version of the Flo n Go gas tank system, they've got one for $5 at No Frills now

[DRIFTER_016]

Whatever you do make sure you talk to a lawyer first. If as you say there are already people making this product, rest assured they have people whose job it is to look out for competition on the horizon, and when they see you (as they surely will once you contact a big box) they will do everything in their power to crush you.

 

 

It sounds to me like the manufacturing of the product is in place and on the market (probably south of the border).

He is looking to become the Canadian distributer of said product and not compete in already established markets.

 

That's my take on it anyway, I could be completely wrong.

It happened once before, in the spring of 1974 if I remember correctly.

[Pachone]

Thanks for the feedback!

 

we have already established the rights to canada for the products, and already have 2 types ready to sell, and more on the way.. straight from the manufacturer overseas.

 

I probably not sure if i would give the product on consignment, and allow to store to sell to me... but to maybe even sell them to the stores, and they can sell it for there own use. it all depends. but it raises a good question. thanx

 

so contact the purchasing dept eh? thats what i thought. Would anyone know how to find that contact? the websites arent the easiest to navigate. I was hoping someone knew someone or a friend that does this for a living, or has done it before.

 

Thanks for the feedback guys!

[bigugli]

Dealing with HD, Walmart, Lowes, etc.., requires deep pockets. Margin purchasing, consignment sale, guaranteed sale ventures, long payment schedules, all require a big credit line on your part.

 

Your computer system must be compatable to, and work with, their purchasing systems. With Lowes and Walmart you must be able to distribute chain wide within 7 days of go date (especially for an ad).

 

HD has their system broken into purchasing districts. You must introduce yourself, and befriend, each district purchaser for the relevant dept you want to sell to. Once you have enough of them on your side, you can then seek head office approval to carry your product as an approved vendor.

Edited July 10, 2009 by bigugli