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Interesting post which comes up from time to time…

With a lil experience in this area each and every comment above this post from Shark Tank through to Johny saying you need a stand alone successful product in its own right to be wanted by the chains is just about right :( unfortunately.

Without sounding negative, as not my intention, anyone wanting to pitch to these guys/gals/outlets truly need a solid foundation before even considering it. Reason for this are extensive, although most comes down to the power of these chains and the demands that they expect.

Drilling down on this, would be things like:
– buying price is expected to be better than anyone
– rebates and facing purchases
– expected advertising contributions
– paying for intended/expected theft of your items (you cover with a % contribution)
– adhoc ‘additonal’ contributions $$$$ if the chains are lacking or have a shortfall, although you can say no your orders will reduce as you have not ‘supported’ the chain
– fast turnaround times to ‘help out’
– stock shorts to a minimum

Although not all get hit on you all the time, they will occur from time to time depending on your size and product and market share (outside of the chains).

Its such a difficult field to tackle with, unfortunately, many unrealistic demands placed on suppliers by these groups that makes if very very difficult to deal with. Also, adding on to someone else comment in a different manner, is that these chains stock the top brands and play hard ball on pricing with suppliers to be competitive.

Also, i here they run there own ‘advertising company’ which is separate to the chains themselves as there is so much profit in the catalogues they produce with the ‘rebates’ and supplier contributions to these catalogues.

Again, nothing is intended as negative, just to make you aware… Your best approach will be to speak to a ‘middle man’ or someone that is already sitting in one of the chains selling a different product (just to pick their brains and to understand the costs).

All the best

Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888