Getting your products on retailers’ shelves is easier said than done. Retailers, especially the major brands, won’t accept just anything you offer them. Rather, each retailer operates according to a set of factors specific to them.
You’ll have to convince the retailer that your products are worth having on the shelves. To do this, you have two options available to you: do it yourself or hire a broker?
Keep in mind that the more retailers you have selling your side, the higher your profit opportunities.
Do it Yourself
The first option is always to consider pitching your products to retailers yourself. Doing it yourself offers various benefits, but the most essential is that you keep the money you’d have to pay the broker. This cost-effective way may be impactful to young startups.
Hire a Broker
As an alternative, you could engage a broker to handle pitching for your business. This method has various advantages, such as the expertise that a broker offers. Brokers have helped many young companies get their products on retailers’shelves.
Therefore, hiring a competent broker may be the faster way to kickstart an efficient product distribution network.
Considerations Before Making a Choice
Both options explained above are feasible means of convincing independent retailers. Selecting the appropriate method for your company depends on some crucial considerations.
The factors to consider when making your decision are:
Team size and Preferred Growth Speed
Two critical questions when deciding on the ideal brokerage option for you are:
- How fast does this company want to grow?
- How big is my team?
If your startup has a small team (as most new companies do), finding the human and time resources to deliver convincing pitches can be challenging. This difficulty is because good pitches require sufficient preparations. However, most startups still prefer to handle pitching themselves. The downside, however, is that growth is largely influenced by the success of your pitches. In essence, growth may be slow.
On the other hand, a broker may be the best option for a small firm that wants rapid growth. The broker handles the preparation and delivery of pitches, allowing your team to direct your efforts to other key operations. Brokers help to get your products on shelves while you focus on meeting the demands that will arise.
Cash Flow and Budget
Most people believe that self-pitching doesn’t affect finances, but it limits the potential to earn more. The few who recognize this concept tend to hire personal sales staff who stay for longer, but they cost more than brokers. It’s advisable to hire a broker for less money in the beginning and then hire sales staff as the products get more acceptance.
Ready to Handle The Responsibilities?
Getting the retailer to accept your product on their shelves is only the beginning of the sales cycle. You’ll have to manage the numerous complexities that follow. These are the paperwork, vendor systems, and properly using sales data.
If you won’t be chanced, a broker is in the best position to handle these responsibilities.
Whether you’re pitching your products yourself or hiring a broker to do so, you are taking active steps to win retailers’ trust. Both options are profitable if rightly used. The key is to find a balance that works for you while ensuring that your finances don’t suffer a damaging hit.