Last week we talked about some considerations you need to make when you’re choosing a vendor.
This week, we’re gonna find one.
Let’s get down to some research!
Our goal here is to identify a company that manufacturers or distributes a product that we want to sell. Once we’ve spotted a couple, we’re then going to contact them and ask how we can sell that product in a retail environment.
First, let’s use the Thomas Register to find a company.
--- Head over to www.thomasregister.com You can access the site for
free, but go ahead and register anyway. There’s no charge associated
with Registering, and you can sign up to get email updates and
alerts when new companies become part of the register.
--- On the home page of the TR, there is a search box along the left
hand site of the site. It says “I am searching for a:” and below
that are 3 choices;
1 – Product or Service
2 – Company Name
3 – Brand Name
Obviously, each one of search functions can be useful, depending at
where you are in your research. If you want to start broadly, just
so we can identify a company that’s selling a particular type of
product, use the first option “Product or Service”
--- After you submit your search, you’ll be taken to a results page.
This page will contain a list of companies that the TR has
identified as candidates for your product search. The companies in
the search results are usually sorted by information – meaning, the
companies that have submitted the most information are put at the
top of the list.
Okay – let’s step back for a minute. There are going to be some
companies in the TR Search Results that give you everything you need
in order to visit their web site, send them an email, apply for
wholesale pricing and access to their wholesale catalog, etc.
However, the majority don’t have that information. Sometimes, all
you’ll have is a Company Name, Address, Phone Number and Fax Number.
Guess what? This is all of the information you’ll need to get in
touch with that company. In fact, if the company has a web site, you
can usually copy the company name from the TR Result and paste it
right into Google. If that company has a site, Google will find it.
--- But if they don’t, you’ll have to contact them the old fashioned
way.
I realize that some folks have issues with that kind of Cold Calling
or Initial Contact, so I’ll include a Fax and Email Template, and a
Phone Script so you can sound as polished as possible when you make
first contact. More on that in a minute…
--- Now, if you do happen to find the company's catalog, either
through your own Google Search or they list their web site in the TR
results, you may find something that can make your contact a snap…
On that company's web page, look for a link or page with the title
“Resellers”, or “Become a VAR (Value Added Reseller), or “Dealers”
or “Retailers”.
You see, some very astute manufacturers know that making contact
easy their customers can help expand their reach into the market
place. So, in some instances, you’ll find your first contact to be a
breeze.
--- Now, let’s talk about the purpose of that initial contact;
What you want to achieve is this circumstance is a total
understanding of how you can use this company’s product to sell in
your store. Here’s what you’ll eventually want to know:
1) What do they sell? Obviously, they were listed for a particular
product in the TR, but their listing may be old, or it may not be
complete. You might find that they have a wide range of related
products that could be useful for your store inventory.
2) Can you order directly from them or do you need to talk to a
distributor?
3) How can you buy their products to resell? Do you need to talk to
a sales rep? Can you order on-line? Do you need to fax orders in?
4) How do they fulfill your orders? Do they send them to you? Do
they drop ship them to your customer?
5) What are their service charges and minimum orders? If they drop
ship, how much do they charge as a fee? If they sell wholesale, what
is their minimum order quantity or amount of sale?
6) If you decide to move forward, what do you do next?
Now, this information may take place over several conversations, and
in fact, it’s absolutely fine if it does. The first thing we want to
do is get that company on our hot lead list and find out if we can
do business with them
--- So, let’s start making contact!
If email is your thing, then by all means, go ahead and send that
company an email asking for more information.
--- Here’s one that I use:
Dear (Contact Name),
I discovered your company in the Thomas Register.
I’d be very interested in selling your products in a Retail
environment. Can you tell me how I can find a local or regional
distributor? I’m located in Southern New Jersey.
When you have a free moment, I’d also like to take a look at a
catalog of your products. Do you have one online or may I request
one directly from you?
You can contact me at (XXX) 555-1212 or email me at xxx@xxxxxx.com
Thanks for your time!
Sincerely,
Andy Jenkins
Company Buyer
A Squared Artifacts
--- Short, sweet, and to the point. Keep it that way when you
contact someone via email. I can speak from very direct experience
that long, rambling emails have a tendency to get ignored. Not
because they don’t have meaningful content, but…
When a busy person gets a long email, they often set is aside for a
time later in their day when they can concentrate on its content.
The trouble is, a busy person usually doesn’t get much down time, so
the email ends up being neglected.
Respect their time, and they will usually get back to you.
We also loaded that email with a key sentence - “Can you tell me how
I can find a local or regional distributor?” You see, in some
instances, a product manufacturer will not actually sell their
product. Instead they may rely on a network of distributors to
service retailers.
The reason we asked that question? It’s a question that an
experienced Buyer would ask. It means you’re serious. And by
including your geographic location, if they do use a distributor,
they know which territory you’re in so they can send you the right
information.
In some cases, you might get a very interesting response from the
manufacturer, asking if you’d be interested in becoming a
distributor… We’ll talk about the ramifications of that later…
--- Now, if you can’t send them an email, and are still leery about
getting on the phone, you can send them a fax.
My fax template is the same, but I include a Fax number as part of
my contact information. In some cases, the company will fax me back,
along with a reseller’s application, and sometimes they’ll stick a
catalog on the end of that fax.
--- If you’re okay with using the phone, you’ll get the fastest
response by calling the company directly.
Before you do, make sure you have your “Story” straight. Meaning,
have all of your contact information (I still don’t know what our
fax number is…) at the ready. You don’t want to stumble through the
conversation. Just relax, don’t anticipate what they are going to
say – listen to their questions, and try to engage them as a
professional buyer for your company.
--- Here’ a phone script that you can use…
Hi there, my name is Andy Jenkins. I’m the buyer for my company. Can
I talk to someone there about selling your products?
(I mean, how easy is that? But that’s just the part you say to the
receptionist…)
Here’s what I say once I’ve made it past the receptionist…
Hi there, my name is Andy Jenkins. I’m the buyer for my company. I’d
like talk about selling your products in retail.
And at that point, they usually start talking….
So, if you’re under the impression that these conversations need to
be complicated, let this be an example of how UNCOMPLICATED they
really can be.
You see, once you let them know that you are the “Buyer” and that
you want to sell in “Retail”, there’s really not much more
information they need in order to start the process. Sure, they’ll
ask you for some contact information, and maybe how you intend to
sell your products, but they won’t want your life story.
If they ask how you’re going to sell, let them know that you’ll be
selling via eCommerce and Mail Order. If they ask how much volume
you anticipate, tell them that you’ll know better once you do the
ROI (Return on Investment) analysis and try selling a few samples.
If you start telling them all about your store, and how you have
high hopes for it and that you’re hoping that their product makes
you a whole bunch of money, you’ll come across as an amateur. Don’t.
--- Sometimes, the manufacturer will ask if you’d like to become a
distributor…
This has all sorts of ramifications, but in the grand scheme of
things, may turn out to be a viable option for you. The bottom line
is, you’ll need to have a longer conversation with the company in
order to figure out if this scenario works for you, but I just
wanted you to know that having a distributorship can develop your
retail strategy.
You might be in a position to sell wholesale to other retailers, and
many distributors have the manufacturer drop ship directly to their
customers.
Find out exactly what they mean when they ask about having a
distributorship, and if the business model has merit, take a good
look at it.
--- Once you’ve made contact with a company, the next few
communications you’ll have will help you to define how they might
fit into your company’s needs.
Remember, you need to know about minimums, quotas, payment, etc.
before you can make a intelligent decision.
For instance, if the company will drop ship for you, having a
relationship with them is really a no-brainer. Having a relationship
with an honest drop shipper is the lowest risk relationship you can
have. Even if you find that the prices that the drops shipper is
offering are not terribly competitive, think about what having
additional choices means to your customers.
Let me ask you a question. Why do you put pictures on your walls at
home? For that matter, why do you have paint on your walls? Wall
coverings usually serve no purpose other than making your
environment more pleasant to be in.
Think about a customer that finds your store… With multiple products
from a related industry in your store, a customer will get a sense
of the scope of your company – and that’s a good thing. Even if a
sale from a particular drop shipper doesn’t net you a whole bunch of
money, that customer is now on your customer list, which means that
you can market to them again, and possibly sell something that has
greater profitability.
--- If you’re in a position where the distributor or manufacturer
won’t drop ship, and you’re not yet comfortable buying a quantity of
products, ask them if you can purchase some samples.
This way, you have a small quantity of products to offer in your
store for testing purposes. If they sell consistently, then I’d have
a better feeling about purchasing them in bulk. One of the ways I
test a new product before I buy a large quantity is to get some
samples from the manufacturer, and then run some Google Ad Words or
Overture Traffic to that product page. If I can sell those products
with the expense of Paid Traffic and still generate a profit, then I
know that as my site climbs through the search engines, the traffic
will cost less and my profit will go up…
--- Lastly, try to form a relationship with your vendor. Keep it
professional, because you never know when you might have to get
tough because of an error on their part – but keep it as friendly as
possible. The bottom line is, you customers will often have special
needs, and it’s awfully nice to be able to rely on a supplier to
help you service your customers.
Remember, finding a supplier can be a numbers game. You might have
to send several emails, faxes, or make several phone calls before
you find one that can work with the requirements of your company. Be
patient.
Think of it this way – everyone else has to do the same thing in
order to find a product to sell. So, don’t become discouraged if you
don’t strike oil with your first email…
Okay, that’s it for this week.
The next newsletter is gonna be fun – It’s called “Success through
Stupidity”. And yes, I am the test subject.
Have a Great Holiday Weekend!
Andy Jenkins
www.online-store-profits.com
www.instantseoexpert.com
P.S. Also, don't forget to visit Brad Fallon's blog and read what
people are saying about Stomping the Search Engines. It's at http://www.bradfallon.com/2004/07/discuss-321-launch.html
