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How to market a product to distributors
Innovator7
subscriber Posts: 9
While being pretty good at developing new products, I`m not familiar with selling to distributors. Recently I invented by necessity the ultimate solution to my need for easy storage and access to surface-mount devices (SMD), I haven`t made headway in contacting buyers of major electronic component distributors such as Mouser, MCM, Digikey of whom I`m a customer. I have quickly set up a web site to sell to end customers but the success of my new business depends on selling thru those distributors, who currently carry inferior products of similar type that I wouldn`t buy due to poor human factors.So my question is: how can I make contact with the distributors` buyer? I have sample kits ready to send to them for their scrutiny but I don`t have names to send to.
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I`m brand new to this forum and website but I`m looking for similar answers to the question you posted. My small startup company invented, manufactures and markets a motorcycle related product called the the Easy Wheeler. www.easywheeler.com</A> Like you, we have a web site and have sold some units to individuals since officially introducing the product in January of this year. We have received a number of great reviews from national motorcycle magazines, internet sites, etc. and we are getting great exposure that way. Like you, I can see that partnerships with dealerships/distributors are going to play an integral part in our marketing strategy. Our problem is this: since my brother and I invested our own money to start the business, we cannot afford to purchase large quantities of the product components from our suppliers (yet). As a result, our final cost per unit to produce the product is very high, leaving little margin to share with distributors. The key here is to slowly build up the sales volume and the orders to our suppliers to the point that their costs to us go down, allowing us to pass those savings on to the distributors and dealers. This takes time and I`m always willing to listen to others for information I may not be aware of. Regarding your original question, I would suggest you start by finding out who the principle players are at the distribution companies you mentioned. You can usually do this through initial email inquiries or direct phone communications. You don`t have to tell them your product is superior to what they have in their current product lines, but you could say something like "my company has developed and manufactures a product that we feel would compliment your current product line". Start there and see where it goes. Let them know that you would like to develop a mutually beneficial business relationship with them. Best of luck to you in expanding your business!
A three mile trip to your lab? What I wouldn`t give to have that short of a commute. You may want to think about inventing a solar powered bike. That`s what the world needs right now to free ourselves from the need for fossil fuels and global warming. I bet you`re already thinking about it!
Email today is a tricky business if you send them to people that don`t know you. With advances made in spamming software over the last couple years, I would think that a majority of your messages are instantly rejected, and the rest that get through probably have less than a 50% chance of being read. Still, if the subject matter get`s the reader`s attention, you have a chance that they may reply. If you have a great product and you really believe in it, sooner or later others will too. From an inventor`s perspective, it would be much easier if we could simply apply ourselves to what we do best.... create, prototype, test etc. Instead, we find ourselves writing patents, filing for incorporation, writing RFQs, researching prospective vendors to secure materials and filling out mounds of paperwork for other financial necessities. It sounds like you`ve been doing this for a while, so that means you haven`t given up, which is great! Just talking to people who are as persistent as I am keeps me going. My motto is "Never give up, or you die". Best Regards, jamnjim
So my question is: how can I make contact with the distributors` buyer? I have sample kits ready to send to them for their scrutiny but I don`t have names to send to.
Hi Innovator7,
Good question! I am in the same position as you are. I look forward to seeing what others suggest.
Jeannie
What do you do if distributors are knocking down the door to sell your product, but you don`t have enough profit margin to allow them to add an additional 30-40% markup and still keep the cost at the MSRP? ($299.00)
If I sell them our product at wholesale, we will literally break even (no profit at all) when all manufacturing costs are considered. You can`t support a business that way! We could force our costs down if we could order larger quantities of the components we buy from our vendors, thereby securing better pricing. However, you have to have the sales to justify that first, and the sales will only come if you have a lot of distributors. It`s the chicken and the egg dilemma. Maybe someone on this forum could explain how miracles work.