# Clear \$250,000 on One Sale

I've been trying to get a conversation started on selling to large retailers. Maybe an example of the potential profit will persuade you to join in.

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.

Thanks,
Steve R.
R.A.M. Video
• Retailers would normally test launch a new product in just a few stores to see how it sells before rolling out across the full 1,000 stores.

Retailers generally would want the product supplied atleast 50% of retail price so if you are looking at a retail price of \$9.99, they would want it for \$4 or \$5

Also, retailers prefer to deal with suppliers who have more than one product so if you only have the one product, it will be a little harder to get it on their shelves (but it can be done)

To start, I would advise simply phoning a few retail chains, ask to speak to their buyers and simply discuss whether they would be interested in the type of product you are looking to supply.
• Selling to retailers is iffy at best. If you've got a great product
consider taking it directly to the consumer via HSN, QVC or any
of the other TV shopping outlets.
• Just given me an idea for a product which I can't produce but may be of interest to others who could produce them.

How about short DVDs which have titles such as '10 easy vegetarian meals' 'Cooking rice dishes' etc and these DVDs could be located near the main ingredients used in the recipes. Rather than big cookbooks, this would be something people could cook while watching the chef on the DVD showing you how.
•  Originally Posted by julesbrad Just given me an idea for a product which I can't produce but may be of interest to others who could produce them. How about short DVDs which have titles such as '10 easy vegetarian meals' 'Cooking rice dishes' etc and these DVDs could be located near the main ingredients used in the recipes. Rather than big cookbooks, this would be something people could cook while watching the chef on the DVD showing you how.
Exactly!

You have hit on the exact type of product I'm working with. In fact, another Warrior sent me the same suggestion for a cooking DVD in a PM a few days ago.

My current client is creating DVDs with Arts & Crafts projects. With a little thought, you can come up with many more situations where you can use a "how to" DVD to promote the sale of other merchandise in the retailer's stock.

There are many more details to consider when you decide to produce a "how to" DVD. As I said in the first message, just send me a PM and I'll fill you in on what we've learned so far.

Steve R.
• When I first read the OP, I thought, "Good luck with that."

But the I stepped away and thought about it.

While trying to get in the big boy stores would be damn near impossible, you could get in the smaller chain - niche - stores. Even mom and pop stores.

A few examples:

1. Computer stores: Working w/ Windows, anti-virus/spyware utility cds w/ videos explaing the software, installing and proper usage
2. Camera shops: How to edit photos, taking pictures, lighting, etc
3. Sowing shops: How to do certain stiches (I dont know other examples, I dont sow)

Lots of possibilities IF you can create something professional looking.

Garrie
•  Originally Posted by GarrieWilson While trying to get in the big boy stores would be damn near impossible, you could get in the smaller chain - niche - stores. Even mom and pop stores.
Hi Garrie,

I think you're being a little pessimistic :rolleyes:

But you have a good point. Producing a "how to" DVD can be done with a relatively small investment. While you are trying to make the big sale, you can also sell that DVD through Amazon, eBay, your own website or by personally making the rounds of small retailers. You could easily recover your investment before you land the first big sale.

And a sales history from these alternate distribution paths might help you make that first big sale.

Steve R.
• One big issue now is that banks are real tight with money.

THEY are even scrambling for cash.
• Jimmy Krug used to talk about this kind of thing... Creating little how-to guides and personally branding them for each business, then selling them in bulk was his racket though.

i.e. 101 things to look for in a used car, branded with a credit unions name and logo so they could hand them out for marketing. bla bla bla. Then he'd sell them 50K copies or something.
•  Originally Posted by mr2monster Jimmy Krug used to talk about this kind of thing... Creating little how-to guides and personally branding them for each business, then selling them in bulk was his racket though.
What goes around comes around! This is basically the same idea updated for the digital age. I can even see situations where a retailer or a service business might want to give away a "how to" DVD as a branding tool.

Steve R.
•  Originally Posted by submit2.0 Really interesting Topic, wow the idea is not bad, but it's up to luck
I guess there is a bit of luck involved. The retail buyer could find some excuse for not buying even if you have the greatest product since sliced bread.

But this technique is just like any other business. If you do your research, you can be sure you are creating a product the retailer SHOULD buy. And if you do your research on the process of selling to large retailers, you can be pretty sure you'll get your shot at the big order.

Steve R.
• Offer to place in a few stores where you get paid for what is sold. Agree that if it meets expectations they will buy for all stores ??

This way you won't need such a massive outlay of cash to produce the limited amount (enough for one or two stores) and when the buyer places the big check in your hand, you won't need the bank.
• Gail,

It's not unusual for the store (chain) to set you up on a 30, 60, or 90 day payout after recieving the merchandise.

If stores paid you up front the new business model would be to declare bankruptcy as soon as the check cleared. It's been done.

Additionally, a legitimate purchase order from an established company can be used as collateral for a bank loan.

KJ
•  Originally Posted by Gail Sober Offer to place in a few stores where you get paid for what is sold. Agree that if it meets expectations they will buy for all stores ?? This way you won't need such a massive outlay of cash to produce the limited amount (enough for one or two stores) and when the buyer places the big check in your hand, you won't need the bank.
Hi Gail,

This brings up an important point about DVDs. Most internet marketers who use DVDs use services such as Kunaki to duplicate their DVDs in fairly small quantities. Those services use DVD burners to do their duplication.

If you are planning to sell DVDs to retailers, it would be a good idea to use a DVD duplicator that uses "glass masters" to manufacture your DVD copies. That probably means a minimum order of 1,000 copies. But you get many more options in your packaging.

Steve R.
• Steve,

You're looking for something that is already right in front of you. Bring this idea online. I can't really go into that much details as I'm about to do the same thing. But this idea will work much better online. I'm sure of it.

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