Pitch to Walmart; Learn How to Pitch to Retailers

Stephen-Woessner
Marketing Your Product, Invention; Stephen Woessner Talks Podcasting
November 6, 2017
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Idea Creation and Testing; Eric Huber Gives us the Steps to Get Your Product Licensed
November 10, 2017

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If you invent products or have a start-up that's ready for retail, the Get Retail Ready podcast is THE place to hear stories and gain knowledge with the Get Retail Ready guy Jim DeBetta! Jim is a renowned retail selling expert having sold over 100 million dollars worth of products to the world's leading retailers! Knowing the ins and outs of preparing to and selling to major retailers takes knowledge, experience, and enthusiasm. Join us each week to get the inside scoop on how to make YOUR invention a success! www.weknowbusiness.info The Inventors Launchpad – Roadmap to Success Series is presented by Inventors Launchpad in beautiful Tampa Bay, FL and hosted by Carmine Denisco. Carmine is an accomplished Author, Entrepreneur, Inventor and Co-founder/Managing Partner of Inventors Launchpad. Along with his business partner Rick Valderrama has changed the face of the invention industry and look forward to helping inventors from all over the world move their ideas forward. For more information please visit www.inventorslaunchpad.com

Podcast Notes

1YouTube generated podcast notes, please excuse any typos.
you'll get it hi everyone and welcome to
0:04
the inventors Launchpad Network
0:06
I am carmine danesco your co-host for
0:09
today's show of getting retail ready
0:12
with the stupendous the retail a maniac
0:16
the guy with the answers mr. Jim the
0:20
betta how's it go my friend
0:22
there we gots a little better than last
0:24
time better build up on that oh I was
0:29
tired yeah I know it's good it's busy
0:32
it's good though you know yeah yeah I
0:34
know man I know I've been seeing some of
0:36
some of the stuff you got going on on
0:38
Kickstarter and things I saw that one
0:40
what's it like a vacuum that picks up
0:42
the kids toys what's a deal yeah it's
0:44
it's called title tykes it's it is it's
0:46
a vacuum attachment so we you know you
0:48
have your vacuum with a hose and you
0:50
attach this and it looks like a shock
0:52
and it's freaking long and it's got like
0:55
this huge mouth and you you hook one
0:57
side to your vacuum hose and the other
0:59
side you use like now this is like the
1:01
vacuum hose the other side and you can
1:04
suck up Legos and marbles and whatever
1:07
else you know kids in theory should
1:10
enjoy cleaning up so the parents
1:12
cleaning up you know so yeah I mean it's
1:15
a great product we've shopped it around
1:16
to some retailers they love it
1:18
but yeah we got a Kickstarter campaign
1:21
going but you know you know it is it's
1:24
it's tough you know trying to raise
1:26
significant dollars from lots of people
1:29
is not always easy or it's easier said
1:31
than done so we're pushing it and we'll
1:34
see how it goes yeah yeah so it's on
1:36
it's on Kickstarter now it's called
1:37
tidal Pike's right yeah TI d al TI k eso
1:42
you know it's kind of a play on the
1:44
letters but yeah so yeah if people can
1:45
check it out and go help for no fund it
1:48
share it whatever you got to do
1:50
yeah it's a great help to the people
1:51
that created it's a great product it
1:53
really is yeah I thought it was cool I
1:54
thought it looked cool but the main
1:55
thing is is you get the kids interested
1:57
in cleaning up which I thought it was
1:58
pretty wild yeah I mean you know I
2:00
seriously how many times if you had like
2:01
you know your kids and they dumped all
2:03
the stuff on the floor and then they
2:04
walk away I mean you're left cleaning it
2:07
all right no that's not right so you now
2:11
and you know I've had my two
2:14
my little ones use it and they're like
2:17
they love it they're like oh then
2:18
they're dumping stuff out on purpose I'm
2:21
okay that's not what was supposed to be
2:22
doing that's for they're dumping stuff
2:25
so yeah so it's good you know we'll see
2:29
what happens
2:30
no no I know you got some some cool
2:32
process going on how did the the the
2:35
former civil to pill device Oh memo box
2:37
yeah that's still don't we got you know
2:39
we're working talking to Costco right
2:42
now and we've got hats on Hammacher
2:45
Schlemmer you know we're just waiting
2:46
anxiously for those orders to come in
2:49
you know we've got it around a lot of
2:51
places but you know as people know from
2:54
listening to us every week you know the
2:55
process is not quick it's it's often
2:57
painfully slow but once it starts to go
3:00
it usually goes well so you know for
3:04
something like this I mean is it natural
3:05
I mean most people especially and they
3:07
get to like their fifties sixties
3:08
seventies are taking a pill of some sort
3:10
it doesn't have to be like medical stuff
3:12
it you know people take supplements
3:13
right when they they go to the gym so
3:16
you know if they go to like Gold's Gym
3:19
for example right and they you know
3:21
they're working out and you know they
3:22
taking supplements you know before after
3:24
you know it reminds people to take them
3:27
you know so it's cool no it's cool
3:30
because and I think anything that helps
3:31
I mean we got so many distractions now
3:34
and medications and pilling and pills
3:36
and things are are so you know important
3:39
that take it but also you don't wanna
3:41
take it the wrong time it won't so
3:43
having something like that I think it's
3:44
pretty cool man
3:45
yeah and you know it's like a lot of
3:48
these products you know the it's a slow
3:50
burn right so I think of like building a
3:53
fire in a fire pit right you go out
3:55
there you take some sticks some leaves
3:59
you light it up it starts to burn but it
4:02
takes a while right and sometimes you
4:04
can't get that fire going it's a little
4:05
frustrating so you start trying to keep
4:08
more crap on top to get it burned
4:10
cardboard what have you got to do
4:12
gasoline if you want I mean that makes
4:14
it go quicker right but you know you try
4:17
to you try to make it go but once that
4:19
fire starts to burn and once you get
4:21
that base and once it's red-hot that's
4:24
when things start to happen until then
4:27
though people don't
4:28
it's it's you know it just takes it
4:29
takes time and you have to know what
4:31
you're doing right I mean people learn
4:33
this about like say building fires right
4:36
if you take wet wood and wet twigs and
4:39
stuff and you try to light fire it's not
4:41
gonna light just gonna sit there and
4:42
smolder and you can't you can't get
4:45
anywhere doing that right you'll just be
4:46
sitting there you know forever and you
4:49
know with products it's the same way if
4:50
you prepare and you have all the stuff
4:52
you need to do it right it goes easier
4:54
then you you go ahead and you have what
4:57
you what you want and it's great and
4:59
that's how products work too well that's
5:02
why I look at it's a great way that you
5:05
explain that because I look at you as
5:07
being the gasoline yeah you know and I
5:11
know that you know you have a lot of
5:13
people that come to you that have been
5:15
and again it not anything good or bad
5:17
they just don't know what to do and
5:19
they've been trying which is great and
5:22
then you just take that thing and you
5:24
throw it over the fence with your
5:25
contacts and and your organization and
5:28
the right way of doing it and it is it's
5:30
it's the gasoline you know you want to
5:32
get a fire burn and man you've got to
5:33
bring to somebody that knows what
5:34
they're doing and you know I know we
5:37
were talking a little bit earlier about
5:38
one of our clients that you know again
5:40
wanted to experience for themselves they
5:43
want you know they wanted our help but
5:46
they also wanted to talk to the buyers
5:47
they wanted to do things and go out and
5:48
visit and you know the inventor came
5:51
back to me and said hey I had a had a
5:53
meeting with a buyer and he just blew it
5:55
and you know I I was telling you a
5:59
little bit about it and and that happens
6:01
huh you know I mean these inventors they
6:03
just you got to know what to say yeah we
6:05
know you don't you don't get a second
6:07
chance especially when you have a live
6:09
meeting which is what we're gonna chat
6:11
about today you know the last couple
6:14
weeks we talked about preparing for this
6:16
moment right getting you know getting
6:18
the product in front of the buyer with
6:20
cell sheets and presentation decks and
6:22
getting samples out and even though it's
6:26
not as prevalent today you know you get
6:27
people even these bars will say hey you
6:29
know what yeah once you come out and sit
6:31
down with us and go over everything and
6:32
then you're like holy crap you know it's
6:35
even worse now because you can't hide
6:36
behind an email all right you got to go
6:39
out and you got to sit down so
6:42
here's what happens right you know you
6:44
get that invite you know of course it's
6:47
this this time and money you got it you
6:48
got to go right so that's like a day or
6:51
even two days if it's if it's far away
6:53
right you got a hotel you got maybe if
6:56
you're staying overnight you got a
6:57
rental car you've got your flight you
7:00
got food you know and you know it's
7:04
funny I had few years back I I took
7:08
somebody with me like an inventor and
7:09
they they stopped off there you know if
7:12
we were eating first like before like
7:14
say the appointment was at 1:00 and it
7:15
was like 11:00 and like I Alice gets on
7:17
eat and he's like dude do I bring lunch
7:20
like do we bring like I'm like dude this
7:22
isn't a lunch and learn you know you
7:23
know you know the bar Billy it on their
7:26
own they're good right so you know look
7:30
it's you don't bring a chicken salad
7:32
sandwich into the meeting right with
7:35
drinks you you go and you just show up
7:38
and you know what you need to talk about
7:40
when it comes to your product
7:42
so when you get there and you're in that
7:44
meeting I mean look I mean you know this
7:47
the buyers don't have time to listen to
7:50
your story and it you know they just
7:54
want to get right to it you know what do
7:56
you got yeah I saw it and you when you
7:58
get in there you assume that the buyer
8:00
like read all your stuff and and went
8:03
through this I've gone to so many
8:04
meetings with the buyer hasn't it said
8:06
they like they looked at a sample but
8:07
then the samples like sitting there in a
8:09
box a day even taking a razor blades of
8:11
the thing that's open right all right
8:14
yeah and so you get there and then the
8:16
but for the first time the bar is
8:18
actually seeing it yeah but you know the
8:20
the inventor tends to start going well
8:22
you know I did this for this and this is
8:23
why I did it but and it's like less is
8:25
more here like just stop talking you
8:28
know and let the buyer ask questions
8:30
yeah I agree
8:31
yeah and again it's it's it's so hard I
8:35
want all inventors to experience it you
8:37
know and you know Jim you're walking
8:39
into Walmart's you know office in you
8:42
know in Arkansas or you know or going to
8:45
target's headquarters where the buyers
8:47
are it's it's a great experience it
8:50
really is but it's so hard to take the
8:52
emotion out of it when you're sitting
8:54
down with this
8:56
it's really very much disciplined you
8:59
gonna get one shot you know when that
9:01
buyer asks you those questions it's a
9:04
it's it's it's a unnerving experience
9:06
you know the first time I went to
9:08
Walmart the one thing you noticed about
9:10
there you go in these rooms they look
9:12
like these um you know on TV when
9:14
somebody goes to visit somebody in
9:15
prison and then there's like that wall
9:18
of glass and it's like a phone on both
9:20
side I mean it almost felt they feel
9:21
like I'm really Cantera Gatien rooms I
9:24
mean there's nothing in them right
9:26
there's like a phone there then there's
9:28
a guest you turn on there's this huge
9:29
sign in the wall that says like it's
9:31
like this Proclamation by the buys it
9:33
you know Walmart buyers are not allowed
9:35
to accept gifts and allowed to do this
9:37
and allowed to do that you know go to
9:39
lunch go to dinner you know I mean ate
9:41
and you're turning around and you're
9:42
ready to sit down that's and that things
9:44
like the size of the wall that sign it's
9:46
like calling out it's like so you can't
9:49
say to the buyer hey you know let's do
9:51
any impropriety any inkling of that
9:54
right they it's like you're buying them
9:57
off like you can't go to lunch and do
9:59
shots of fireball you know with with the
10:03
buyers right or you know vodka iced teas
10:07
and yeah you know and and stuff like
10:10
that Arnie Palmer is right
10:11
you can't do that they won't let you you
10:13
can't I mean they make it's very very
10:15
very clear you get in there it's here's
10:19
what I got here's the cost they'll ask
10:20
questions a lot of buyers will come
10:23
right off the bat and just want to even
10:25
make sure that you're capable of
10:26
fulfilling they'll say how many pieces
10:28
you have an inventory you know how many
10:29
pieces can the factory make things like
10:31
that you have to know it's you know when
10:32
people go on Shark Tank right yeah you
10:35
know what is Robert always said what
10:36
does Barbara always say you know they
10:37
you know know your numbers know your
10:39
stuff yeah and people don't know it hey
10:42
you know they they kind of like bub I
10:45
mean you only have one thing how hard is
10:47
it to know what the cost is how hard is
10:49
it you know what's the retail you know
10:51
how many pieces
10:52
can you factory make but you know we
10:54
take it for granted we know this stuff
10:56
but a lot of people don't think that
10:58
that's going to be asked yeah no I agree
11:01
and and and all you inventors out there
11:03
they're listening we're not saying not
11:05
to be emotionally we're not saying have
11:06
not to have fun with your invention
11:08
but as Jim said you have to know your
11:11
numbers like you know if you spend all
11:13
of your time telling people the story of
11:15
how you came up with your invention
11:17
that's okay when you're not but when you
11:19
walk into this particular setting you
11:22
need to really know the story is
11:25
secondary they may you spend that later
11:26
after your buyer signs a contract or
11:29
once if the buyer asks you this question
11:33
maybe you answer it but keep it short
11:35
but otherwise do not bring up the story
11:38
how you created for your Aunt Mabel to
11:40
help her hip or whatever the product is
11:43
unless they ask give me the case of the
11:45
buyer will ask right but again it's
11:47
worth that's your elevator pitch that's
11:49
your opportunity to tell them and him or
11:50
her in a few sentences it's not come on
11:53
and on and on and on it no no no you
11:54
know back when you know when I was three
11:56
I mean they don't care they just go on
11:59
say they don't care they don't have the
12:00
time right and I some don't care and
12:03
some get there and right and don't have
12:05
the time it's a common case you gotta
12:07
believe me I think by bet buyers say
12:08
yeah whatever okay
12:09
great I mean look I mean if they're
12:14
meeting you they're probably meeting
12:15
four six eight other people that day it
12:18
gets wearing I mean you know so when
12:21
somebody like you ride goes into
12:22
immediately they know that we know how
12:25
to get to the point and give them the
12:26
information they need so they can go
12:27
back to their desk and say alright this
12:29
looks good or you know this product
12:31
doesn't look good you know they all the
12:33
other stuff doesn't help them to make a
12:34
decision a business decision right so
12:37
you know they go in and they'll ask
12:39
things they'll say we know what's our
12:40
cost you know what's the suggested
12:42
retail price um do you know who our
12:44
competitors are I mean you'll that's
12:47
another thing you think that's a natural
12:48
thing for people to do but a lot of
12:50
inventors don't really know it out what
12:53
is in the store that they're pitching to
12:56
so like if you go going to Walmart you
12:58
better know what Walmart is carrying in
13:00
your category and there's always
13:01
something that's like what you have
13:03
people say well no my things so unique
13:05
it's the only thing of its kind is
13:07
always something that sort of like it
13:10
all the time so you have to think like
13:12
that if you don't know that then you
13:15
look like you don't know what you're
13:16
talking about to the buyer yeah you know
13:18
then they they expect you to know those
13:19
things it's very very important so
13:22
these are the things that you can expect
13:23
and just again if you don't know you're
13:26
better off saying you don't know I've
13:27
had people try to make stuff up you know
13:30
the best answer is just say listen let
13:31
me get back to you on that you know
13:32
whether it's a cost thing or it's a how
13:35
many pieces can the factory make or
13:37
where does the product ship from or you
13:39
know is your product safety tested or
13:41
whatever I mean you should know those
13:42
things if you don't say listen you know
13:44
let me get back to my team and get you
13:45
an intelligent answer I mean there's
13:47
ways to you know to go to combat that
13:49
you gotta you got to do that you got to
13:51
make sure real question I mean I know
13:54
you're covering is kind of and we're
13:56
jumping back and forth but what do you
13:58
are some of the major items or major
14:00
numbers that I should know or an
14:03
inventor should know if they are able to
14:06
sit in front of a buyer yeah you got it
14:09
obviously I know you cost so the cost
14:11
that the bot that you're gonna sell the
14:14
product to we're using Walmart here
14:16
right so if you're gonna sell the
14:18
product to Walmart for five bucks that's
14:20
that's the cost you can offer that's
14:21
what you should tell the buyer and then
14:23
the other one is the suggested retail
14:25
price or MSRP as you can say well you
14:28
know what do you suggest we sell it for
14:29
in our stores well if it's ten dollars
14:31
then it's ten dollars right those things
14:34
you have to know I think you definitely
14:35
have to know your factoring information
14:37
you have to know where the factory is
14:40
you have to know how many pieces can the
14:41
factory make your per month I think you
14:45
know if they can make a thousand or a
14:47
hundred thousand what's the lead time
14:49
that's another big question how long
14:51
will it take your factory to make X
14:53
amount of pieces how long can will it
14:55
take for the product to get here that's
14:58
a big thing product liability insurance
15:00
they may not necessarily ask that
15:02
specific question but you shouldn't you
15:04
should know what your limits are so you
15:07
have your per occurrence and your your
15:10
aggregate amounts right so usually like
15:13
a couple million is the hold a
15:16
Grigoryants is anywhere from you know a
15:18
million to you know ten million or
15:20
whatever it spends on on the product
15:21
they'll ask those things there's a lot
15:23
yeah that's right and when you when you
15:28
talk about the factory
15:29
it's a you know we were talking we were
15:31
talking about the buying buyer side but
15:33
the factory side is so important
15:37
when I would speak the last time I went
15:39
to the to Walmart meeting and it's weird
15:40
each buyer that I've dealt with that
15:41
Walmart and gone to the meetings they've
15:43
all been super nice
15:44
you could tell they're busy but they
15:46
have been nice and it was it's funny you
15:48
say that not being able to give him
15:50
anything I once left my pen in the room
15:53
and you know the the gentleman came all
15:57
the way out to the parking lot to give
15:58
it back to me I mean he said he listen
16:01
you're not allowed to leave anything say
16:03
that's it and right that goes back to
16:05
the sign on the wall maybe he thought
16:06
you know something being on even though
16:09
he probably knew that you weren't that
16:11
was a little over like a cheap pen no
16:15
you learn this about doing this for as
16:17
long as I've done it you learned one
16:18
thing about relationships okay so
16:21
sometimes you meet a buyer often w-2
16:24
buyer and you you don't hit it off I
16:26
mean you know this but some buyers are
16:27
just they're very tight they're rough
16:30
around the edges there worked out
16:32
they're tired they're just robotic about
16:35
it very occasionally if you're lucky you
16:39
know you'll need a buyer who fits you
16:42
who gets you who you get them you get
16:45
along and and it works and when you get
16:49
that you you know hold on it's what you
16:52
take advantage of it's very very
16:53
important people don't realize that they
16:55
you take a lot of those things for
16:57
granted they don't appreciate what's
16:59
right there in front of them you gotta
17:01
you gotta take that and run with it
17:04
because that could wind up being you
17:06
know the biggest thing that you wind up
17:07
doing yeah and as you said Jim in the
17:10
past these buyers do move around a lot
17:13
so you you want to keep that bridge open
17:16
you want to keep that friendship if
17:18
possible at least through email and keep
17:20
it business like because if that buyer
17:21
goes to another store or goes to a
17:25
different category you know he might say
17:29
he might remember you and all the time
17:31
happens i I can't even remember how many
17:34
times I have worked with somebody and
17:37
they either moved up from a buyer to
17:41
like a divisional merchandise manager
17:42
general merchandise manager vice
17:44
president of merchants Walmart they've
17:47
went to another retailer it happens
17:49
right now I mean I'd say that happens
17:51
half dozen plus times a year the buyer
17:54
from Walmart goes to Target or Target
17:57
goes to Bed Bath & Beyond and right
17:59
instantly you've got an inn you know and
18:02
usually when they go they tend to go at
18:04
a higher level they're not an associate
18:06
buy or an assistant they're going
18:08
because the other retailers
18:09
you know covet with what their skill set
18:12
is so they they pick them up so yeah
18:15
it's um you know I've seen it you know
18:19
you know that yeah so just moving on so
18:22
that so you go and you do this and just
18:25
let's say that we answer all the right
18:28
questions the buyer says listen I buy a
18:31
says to you do they ever say right in
18:33
that meeting and I know the answer you
18:35
that we're doing this for the viewers do
18:37
they that they want the product or is it
18:38
something that they get back to you on
18:42
if you if you mean it well we know via
18:45
email it's always it's a long process
18:48
but if you are meeting with the buyer
18:50
it's just an initial meeting most of the
18:53
time they will not you know commit to
18:55
anything right then in there
18:57
occasionally they will if you've been
18:59
emailing or talking and there's a need
19:03
for you to show up and you show up yeah
19:05
it's it's possible it certainly has
19:07
happened and it does happen but I think
19:09
you shouldn't count and I think you
19:10
should count on going in there going you
19:13
know showing the product discussing it
19:14
answering the buyers questions giving
19:16
them information what happens often is
19:20
they will say yeah yeah well you know
19:22
Carmen I'll email you later I'm gonna
19:24
email you some vendor forms let's get
19:25
those filled out so we can you know get
19:27
more information about the product
19:28
that's a great sign because that's what
19:29
you want you want those vendor forms but
19:32
I you know in my experience doing this
19:34
live I you know I take vast majority of
19:37
the time that meeting is a meeting to
19:39
get together and discuss things and then
19:41
things happen whether it's a week later
19:44
or three months later but you have to be
19:46
prepared to that it could happen that's
19:48
why you have to have your information
19:49
prepared and if you don't have that
19:51
prepared you know the people there will
19:53
ask you things about your packaging tube
19:54
another thing people say well can I just
19:56
show up with a prototype to a meeting um
19:58
you I mean you could if that's all you
20:01
have
20:02
but if you can show up with what we call
20:05
a retail ready package right it's in its
20:07
box how it's going to look on the Shelf
20:09
the buyer can't buy something that's not
20:11
finished your wish I could tell you
20:13
views your show up with a rough
20:14
prototype they're not gonna commit to it
20:16
right there because they want to see
20:17
what it is that you got so that will put
20:21
you right out of it but if you can show
20:23
up with something that's finished you're
20:25
good and and then there's a better
20:27
chance that they'll act on that yeah
20:29
yeah you're a wonderful scent if you go
20:33
there thinking if I show this to them
20:35
they are gonna love it and if I can just
20:37
explain to them how it works they're
20:39
gonna love and they're gonna buy the
20:40
buyer cannot buy that product unless
20:43
it's as Jim said finished most likely in
20:45
some type of packaging and and a lot of
20:47
times a Jim I went up there with a
20:49
products last time I was there three or
20:53
four of them were just just pushed out
20:56
of the way right away yeah he did like
20:58
what he did like one product very that
21:00
we talked about mostly the other two you
21:03
know we went through email and end up
21:04
taking so three out of eight well it was
21:06
it was a home run
21:07
yes they were all finished packages and
21:10
I could tell you all three the packaging
21:12
got changed yeah they do that right just
21:15
say that the colors the color scheme the
21:18
size sometimes you think it's too big it
21:19
well you know that you know this limited
21:21
shelf space in the store sometimes
21:22
people come in they want a big package
21:24
because they think it takes up more
21:25
space and it it looks more alluring
21:28
because it's because it's bigger but
21:30
that's not that doesn't always fit you
21:32
know if they say we only have two linear
21:34
feet to work with here you have a
21:35
three-foot long package you're gonna
21:36
have to somehow hopefully find a way to
21:38
cut the package down you got add I mean
21:41
you have to do it and hopefully you
21:42
don't have 5,000 of those pieces sitting
21:43
in your basement that you now can't do
21:46
anything about
21:47
you know so you know woman I don't give
21:49
you enough time you're in that meeting
21:51
look there there are temporary things
21:54
that people can do right so you go in
21:57
there all right it's like decorating a
21:59
room right so you have a room or a
22:01
bedroom and there's nothing but blinds
22:03
on the wall but you want to you know so
22:05
you want to do something to make the
22:07
room more cozy so you stick some some
22:09
curtains up right little things you do
22:13
things that will allow you to just feel
22:15
a little bit
22:16
comfortable make them a little bit more
22:18
comfortable until you can do what it is
22:19
that you want to do but if you go in
22:21
there like this is like I either zero I
22:24
have something completely finished
22:26
there's a good chance the buyers gonna
22:27
say you know we need you to make this
22:30
change but this is this just won't work
22:31
for us and then so you know and they're
22:34
like they'll give you plenty of time and
22:35
if the buyer even committed right then
22:36
and there they're not gonna say ship
22:38
stuff next week no they've got to have a
22:40
space for you on the shelves and it's
22:41
usually gonna be months out so you'll
22:42
have time to go to the factory make a
22:44
new water you know which usually takes
22:46
3040 days or whatever maybe even if it's
22:49
longer and then 30 days to ship it over
22:51
here you'll have those to three months
22:52
to get the product in for sure mmm so
22:55
we'd yeah and in here exactly
22:57
nothing happens quickly as we've talked
22:59
about and as you said so a lot of times
23:01
people get so from P and an see that oh
23:04
my god how am I good delivered is
23:05
product but it they give a Walmart does
23:07
this for a living they know I mean they
23:10
know it takes time but question for you
23:12
so so aren't inventors there are people
23:16
with the buyer when they talk about
23:17
numbers are they able to negotiate it
23:19
all well look at the best negotiating
23:23
tool if you will is to have a higher
23:27
price than you intend on selling them it
23:29
this is what happens a lot of times all
23:31
right we'll use the five and 10 dollar
23:33
example ten dollar retail five dollar
23:35
cost we assume that most retailers are
23:37
gonna mark it up we call keystoning or
23:39
doubling your money right so that's a it
23:42
could vary give you less or more but
23:43
let's just use that if it costs you
23:46
let's say three dollars to make the
23:48
product by the time you you know pay
23:51
yourself your expenses you know blah
23:53
blah blah whatever and the buyer comes
23:56
back is when we need it for four dollars
23:58
you're paying three you might be writing
24:01:00
a check to Walmart instead of them
24:02:00
writing you a check and I've seen that
24:04:00
happen so you have to look at the retail
24:07:00
make sure you're not overpriced but if
24:09:00
that 10 dollar product really could be a
24:11:00
fifteen dollar product in the store and
24:13:00
that price could be 750 to Walmart and
24:16:00
the buyer comes back is gee I needed at
24:17:00
five or six bucks at least now you're
24:20:00
through I'll cost you're good so a lot
24:22:00
of people make the mistake of they hear
24:24:00
and people email me this they say no Jim
24:26:00
I don't I don't want to work with
24:27:00
Walmart because I hear they really kill
24:29:00
you on price I'm like what
24:30:00
and other retailers just pay whatever
24:32:00
they if you want them to pay no they're
24:34:00
all the same and Walmart can make you
24:37:00
rich I mean they I know people that sell
24:42:00
like one line of things to woman that's
24:44:00
all they do and they make millions but
24:47:00
they've got it down so if you go in and
24:50:00
and you're already tight on your price
24:53:00
and you're marred your profit margin for
24:54:00
yourself and and the buyers often will
24:57:00
negotiate you're screwed you can't do
25:00:00
you you'll have to walk away from that
25:02:00
and that's sad and plus they get um one
25:04:00
other concessions like you know they
25:06:00
want you to help advertise Walmart like
25:09:00
it's called co-op so when you fill out
25:12:00
those vendor forms is it a lot in there
25:14:00
saying will you contribute to co-op
25:15:00
actually they're not asking you they're
25:17:00
telling you yeah and now sometimes
25:19:00
they'll put a percentage choice it's
25:20:00
like it's like any when you see these
25:21:00
things you go to a restaurant there's a
25:22:00
tip thing it's like 15 20 or 25 percent
25:24:00
there's no zero or five percent there
25:27:00
the buyers are gonna come in and there's
25:29:00
an assumption that you're going to
25:31:00
participate and what co-op is is when
25:33:00
you know through them but then the
25:35:00
inventor will say well they're gonna put
25:36:00
my product on TV or they gonna put my
25:37:00
product on the front of website know as
25:39:00
a vendor and they've got like a
25:41:00
gazillion of them everybody basically
25:43:00
pulls their money to help Walmart
25:46:00
advertise Walmart because the more
25:47:00
people that see Walmart more people go
25:49:00
in that means more people can see your
25:50:00
product it's like this effect right so
25:53:00
and that could be anywhere from a
25:55:00
percent to three to five percent and
25:58:00
then they have what's called the defect
25:59:00
allowance so your product is going to
26:02:00
get returned by somebody for whatever
26:03:00
reason and then the kid that's working
26:05:00
on the account is gonna backhand it into
26:07:00
a bin whether it's broken or not and
26:09:00
it's gonna get returned to you as a
26:11:00
defect but because I got to pay somebody
26:13:00
to do that and there's a you know and
26:15:00
there's a process for it you got a
26:16:00
contributor a percent or two to that
26:19:00
fund
26:20:00
and these aren't checks you write their
26:22:00
money that comes off with Walmart owes
26:24:00
you so if warm if you do if you have a
26:25:00
hundred thousand dollar purchase order
26:26:00
from Walmart and they deduct you know
26:29:00
three percent for co-op and 2% for
26:33:00
defect allowance five percent you're
26:35:00
gonna get a check for $95,000 but that's
26:38:00
five thousand that comes off your bottom
26:41:00
line or your top line your profit side
26:43:00
right so
26:44:00
you've got it I also people load your
26:46:00
prices five to ten percent just for that
26:48:00
stuff right so that five dollars really
26:51:00
should probably be but you know six six
26:55:00
and a half bucks or something like that
26:57:00
and then at another buck for the
27:00:00
negotiation factor at ten percent 15
27:03:00
percent that they're gonna negotiate
27:04:00
probably or more hopefully you'll be
27:07:00
okay but that's the thing people go in
27:09:00
there with thinking that they can't sell
27:11:00
Walmart it's you just got it
27:12:00
prepared to sell Walmart but there's no
27:15:00
different in Target or Costco or Bed
27:17:00
Bath and Beyond or Walgreens they all do
27:19:00
that stuff they're there it's not just
27:21:00
warm people like now I've had people say
27:23:00
I will not sell warmongers I'm like what
27:24:00
even sane yeah don't say that the
27:27:00
biggest it's the biggest company in the
27:28:00
world nevermind reach I think woman is
27:30:00
the largest corporation in the world
27:33:00
remember they're like they're bigger
27:35:00
than like the biggest oil companies
27:36:00
there how do you not want to sell that
27:39:00
dude well you know it's it's it's kind
27:41:00
of crazy that people would put
27:42:00
roadblocks like that up because they
27:44:00
hear these things they've just never
27:45:00
really experienced it so they hear these
27:48:00
things and it's just fear but the main
27:49:00
thing about it is is that as Jim said
27:51:00
earlier anyone that's listening out
27:53:00
there you have to know your numbers I
27:56:00
have had clients come to me after they
27:59:00
made a deal with a retailer saying I
28:01:00
need to get this price down or I can't
28:03:00
deliver the product yeah yeah and it's
28:08:00
not hard to do this is not something
28:11:00
that you and I know how to do that no
28:12:00
one else can figure out oh you know you
28:15:00
get the price from your factory right
28:17:00
three bucks and you say well what are my
28:20:00
extra cost on top of that $3.00 to sell
28:23:00
the product or to get it to somebody and
28:24:00
then make sure you make it a few bucks
28:27:00
but make sure that you're gonna get a
28:30:00
negotiated price and figure your worst
28:32:00
case scenario that and then if the buyer
28:34:00
actually wants it for four dollars and
28:35:00
you can do you just gotta say yeah I
28:37:00
can't do that they'll respect it you
28:39:00
won't get you won't get a purchase order
28:40:00
but they'll respect that and you walk
28:43:00
away and then you figure out what you're
28:44:00
gonna do next or are you gonna say
28:47:00
listen if you can get the price down
28:48:00
come back to me and if he says that
28:51:00
that's awesome because then you go to
28:52:00
somebody like Jim or you come to mind
28:53:00
somebody like myself and you say how can
28:55:00
we get this price down and we connect
28:57:00
one without one
28:58:00
our factories and we try to get the
28:59:00
price down and if a buyer gives you a
29:01:00
price and you can't go any lower you ask
29:03:00
them well what if I can get the price
29:05:00
down you never walk away without trying
29:07:00
to get that deal go all right and as
29:09:00
long as you know beforehand your numbers
29:11:00
and you know that what's your bottom you
29:13:00
have to know what's your bottom bottom
29:15:00
number for yourself like I can't go
29:17:00
below 450 you know that and you started
29:20:00
six and the bar go so I needed at five
29:22:00
you say listen we do 550 at least you
29:24:00
know you'll hit your bottom I mean look
29:26:00
karma and and the retail side is a big
29:28:00
part of it because it's what they
29:29:00
perceive you know if you have a coffee
29:31:00
mug and you're trying to sell it for 50
29:33:00
bucks and it's just a glass mug people
29:35:00
aren't gonna pay that right because
29:36:00
there's a ton of other mugs that you
29:37:00
could buy for $10 or $15 or even a nice
29:40:00
pretty one is maybe even 20 the retail
29:43:00
is important because the buyers gonna
29:44:00
look at how the product is perceived
29:47:00
then they're gonna work the price
29:48:00
backwards okay an example right so food
29:52:00
cheesecakes okay a cheesecake online for
29:57:00
20 bucks you could also buy a cheesecake
29:59:00
online for 80 bucks what's what's the
30:03:00
difference between one cheesecake in
30:04:00
another is it how it tastes how is it
30:07:00
decorated how is it packaged what's the
30:09:00
website looked like and those people
30:12:00
that make the very very best can get the
30:16:00
top dollars for it if you don't and you
30:19:00
can't you won't and and that's that
30:21:00
perception is everything I show people
30:24:00
you could put a piece of crap in a box
30:25:00
that the box looks awesome you're gonna
30:28:00
like I would say the Tiffany blue box
30:30:00
that's a great example right I mean they
30:33:00
make good stuff but I don't know if
30:36:00
their stuff is that much better than a
30:37:00
lot of other things but that that blue
30:39:00
box is iconic you see that you know
30:41:00
somebody you know I always say this
30:43:00
about wine you ever like buy somebody a
30:45:00
bottle of wine like a gift you for a
30:47:00
friend or family and you don't want them
30:49:00
to think you bought like a $5 bottle of
30:51:00
wine right but most people don't know
30:53:00
wine like they wouldn't know the
30:56:00
difference UniFi tall bottle wine and a
30:57:00
$500 bottle of wine right unless there's
31:01:00
a specific brand you know like like
31:04:00
shipping like Cristal you know people
31:05:00
know so if you get that from somebody
31:07:00
like wow they spent so money other thing
31:10:00
people don't know what it is but people
31:12:00
just have an idea what they are willing
31:14:00
to pay for things you know like could be
31:17:00
anything you like a pair of gloves it
31:18:00
could be a hat it could be you know know
31:23:00
anything it could be anything in the
31:25:00
world it's what people expect to pay and
31:28:00
the bar is gonna look at it through
31:30:00
those eyes and if they think your
31:32:00
product is too pricey they may exclude
31:35:00
it for that reason alone hey listen
31:37:00
comment you know $50 mug we don't do
31:40:00
that we can't do $50 mugs because then
31:42:00
you're gonna charge him $25 for the mug
31:43:00
and he's gonna think you're insane or
31:46:00
she's gonna think you're insane whatever
31:47:00
and and you're already done so how you
31:50:00
have to look at what's out there and say
31:51:00
does mine look better is it look more
31:53:00
expensive does it offer something the
31:56:00
others do not offer and if it does then
31:59:00
you might be able to pull it all right
32:01:00
yeah 100% as you said earlier you have
32:04:00
to know your product you have to know
32:05:00
your numbers you have to know your
32:06:00
categories I mean if you have time to
32:09:00
plan you it's it's like studying for an
32:13:00
exam I'm you gotta know your stuff
32:15:00
inside and out you do not want to be
32:16:00
lumped into a commodity category you
32:18:00
have to tell the buyer why you're gonna
32:20:00
stand out and you know if you're not
32:22:00
going to then he's gonna look at your
32:25:00
product as Jim said it's just a regular
32:27:00
product that's huge and it also depends
32:29:00
you know when in Rome right you know
32:31:00
Walmart there's a perception of what
32:32:00
products cost at Walmart there's also a
32:35:00
perception what product cost at Neiman
32:37:00
Marcus you ever go to look you've been
32:39:00
to an aquarium right sure you see fish
32:42:00
in there would you know that costs or
32:45:00
the difference in price of one fish over
32:47:00
another but if you see like cool colored
32:51:00
fish tropical fish in neon fish it
32:53:00
looked like they would be more money
32:54:00
right they look like it would cost more
32:56:00
versus just like a plain old you know
32:58:00
gray you know whatever that that means a
33:02:00
lot to consumers how they perceive
33:05:00
something how it looks how it captures
33:08:00
their attention that's everything it
33:10:00
really is I mean there are so many
33:11:00
products that just don't deserve to be
33:14:00
sold based on what they are but they do
33:18:00
it's like Snuggies right I mean come on
33:21:00
we both know that I mean you know I
33:23:00
remember when Kevin Harrington when I
33:24:00
was
33:24:00
we're gonna meet past on that damn thing
33:25:00
and then all-star picked it up yep and
33:28:00
you know where we go that thing is still
33:30:00
selling great like all over the place
33:32:00
all over the world half a billion units
33:35:00
the blanket but you know it was packaged
33:40:00
well you had a funny name you know
33:41:00
people kind of I think people buy him
33:44:00
more to give him as gifts for people
33:46:00
they don't like no you know they do they
33:48:00
make fun of people or it's like a gag
33:49:00
gift or something it is further than
33:51:00
anything else it's like yeah but let's
33:53:00
face it you know I mean it works yeah
33:56:00
yeah I agree and they did a great like
33:57:00
you said also I did a great job with
33:59:00
that product there's no doubt about it
34:00:00
and they took themselves out of the
34:02:00
commodities that made themselves stand
34:04:00
out from blankets yep that's what then
34:07:00
this light wasn't it it's like it right
34:09:00
that came after right wasn't it
34:11:00
slant-eyed only different is a woman
34:14:00
that I can't remember who I remember
34:16:00
talking to her yeah yeah she came up
34:21:00
with that and sometimes the second
34:22:00
coming of something actually does better
34:24:00
than the first this time but I think
34:26:00
that did pretty well too you know for
34:28:00
what it was you know no there's a lot
34:32:00
there's a lot that goes on you know we
34:34:00
could talk about this forever those are
34:35:00
the main things though that you just
34:37:00
have to be aware of you just got it you
34:38:00
got to know your costs you got to know
34:40:00
your factory information you got to know
34:42:00
what else is out there that's competing
34:44:00
with your product potentially just lots
34:46:00
of lots of stuff yeah all those areas
34:49:00
there's so much and again we're gonna
34:51:00
kind of wrap up the show for today but I
34:53:00
want any of the listeners that are out
34:55:00
there to know if you have a specific
34:57:00
question after you listen to this or
34:59:00
you're going to a meeting or a buyer or
35:01:00
you need to want to communicate I get
35:03:00
people and I know you Jim - that a buyer
35:05:00
has approached them or has and then they
35:08:00
ask us how should I answer this you know
35:11:00
if you get lucky enough to have a buyer
35:13:00
that's interested in your product you're
35:14:00
not sure what to say reach out to Jim
35:16:00
reach out to myself let us know if we
35:19:00
can help it would be great we love
35:20:00
seeing inventors succeed and sometimes
35:23:00
you got to share this there's these
35:25:00
podcasts I I think on my right we're
35:28:00
still like right up there in terms of
35:29:00
most listen to podcast and our area of
35:32:00
expertise and you know I mean hard to
35:36:00
hard to verify that varies
35:38:00
specifically but look I mean you know
35:40:00
people are tuning in and that's good you
35:42:00
know people are sharing this information
35:43:00
it's important it doesn't cost you
35:45:00
anything to listen right I mean you're
35:47:00
just hanging out during the day and you
35:49:00
here we have to say and hopefully it
35:51:00
helps a few people make you know the
35:53:00
right decision or helps them get a deal
35:54:00
done that they otherwise would have made
35:57:00
a mistake on one hundred-percent
35:59:00
thousand percent at at this particular
36:02:00
time and jump sir in your idea your
36:04:00
product you definitely want to talk to
36:07:00
people that have done it that do it that
36:08:00
no it's really super important whether
36:11:00
it's us or someone else but please talk
36:14:00
to somebody
36:15:00
sometimes one single word could mean the
36:18:00
difference so we are going to wrap up
36:20:00
this is a another edition of getting
36:24:00
retail ready with my friend and retail a
36:28:00
maniac mr. Jim thebetta if you can
36:30:00
please share the podcast that Jim had
36:33:00
just mentioned go on
36:35:00
we are on Facebook we're on LinkedIn
36:38:00
everybody knows everyone see there's
36:42:00
anybody in the adventure industry knows
36:43:00
Jim they see you stuff online so please
36:45:00
you know reach out share his stuff go on
36:47:00
to iTunes Google Play leave us a review
36:51:00
leave us a great ranking or whatever you
36:54:00
can just to share it so again this
36:57:00
comedy disco saying goodbye until next
37:00:00
time thanks everyone

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