Let's say you have developed a great product to sell to a particular type of retailer. You talk to a buyer for a retail chain with 1,000 stores. The buyer decides to order 50 copies of your product for each store. That's a total of 50,000 copies of your product in this order. Let's say you have priced your product so that you clear $5 on each copy sold at wholesale. Total profit from this sale - $250,000.
Now, you might be thinking "How do I manufacture 50,000 copies?"
For the type of product I have in mind, you can easily outsource the manufacturing. You could have 50,000 copies ready in ten days at a cost of about $37,500. If you have good credit, the bank will lend you the $37,500 on a short term loan.
Are my other numbers an exaggeration? One of my clients and I have developed a type of product that is well suited for selling to a large retail chain. My client is in negotiations with a retail chain that has 1,000 stores. If she makes a sale, she will clear around $5 per copy. The only variable in doubt is the total number of copies the retailer orders. And, of course, whether she lands the order at all.
I'm still looking for a few people who want to try this technique and help me collect some real world data on how well it works. If you're interested, just PM me with a short statement that you won't pass along the details to others.
Now, let's brainstorm this subject and come up with some good strategies for selling to retailers.