February 8, 2013
Before you are ready to pitch to a buyer, there are “must-haves” you should first have in place. These “must-haves” are all components of a larger business case you are building to convince buyers they need your product in their assortment. And these components take time to build, which is why it is important to address them now!
Add this “Must Have” to your business case:
Mitigate risk. Buyers are risk averse, especially anything that may erode sales or damage their stores’ reputation. In addition to mitigating sales risk through consignment deals, consumer testing, having a proven sales record, it is also important to make sure your product meets product safety and quality testing criteria. I have seen many vendors lose shelf space and business because they could not meet the stringent testing criteria many major retailers require. If you manufacture a children’s product, make sure it meets CPSIA standards, but also the retailers’ criteria for drop testing, transportation testing, and the list goes on. Sales reps, other product entrepreneurs and retail consultants can help you figure out what these requirements are. A simple slide that shows the testing and safety standards you meet will quickly wipe away any concerns a buyer might have.