Q&A: How to respond when a retail buyer asks for pricing at a trade show before I have all the info?
A by EMILY:
You don’t want to turn off a potential buyer by telling them no and you don’t want to inhibit your potential success by providing a price that is too high or too low. Below are 3 simple ways to navigate the question of cost.
1. TAKE IT AS A COMPLIMENT
It is a clear-cut buying signal when a retailer asks for your pricing. They are interested and want to make sure your product is something they can afford and something that will work in their store. At this point you are certainly missing information, but you can move on to the next steps with the confidence that you’re making your way towards a potential sale. The key is to turn it into an opportunity to ask them important questions.
2. TALK BUSINESS WITH THE BUYER
Initiate a dialogue with the buyer about their business and current inventory. Inquire about selling in their store, what their best sellers are and what types of margins they typically like to receive for products to work for them. The answers to these questions will allow you to tell them more about how your product can best fit into their location (Dollar General, for example, will need a very different margin than a Target). This will arm you with a more accurate quoting ability.
3. EDUCATE THEM ON YOUR CURRENT MARKETPLACE
They have educated you on their retail business, and now it is your turn to provide insight into what your product is already doing out there in the consumerverse. A great example is your MSRP. Another option is telling them what the product sells for on your website, Amazon, etc. This lets the buyer know what general cost they should expect to sell it for in their stores, and that you have a product that is already selling successfully. Telling a buyer, “it currently sells for $8.99 at Kroger, and it’s a bestseller,” gives you an opportunity to prove that the product works at that price. It can also enlighten the buyer as to why your product might be more expensive – a selling opportunity for special product attributes such as organic, recyclable or fair trade.
Don’t be put off by being put on the spot or feel cornered into making any commitments. Use this opportunity to acquire information, exchange contacts and follow up with additional inquiries needed to provide the most accurate pricing. This encounter should be viewed as a favorable circumstance allowing you to network, share your product and lay the groundwork for future sales.
MORE ABOUT START TO SOLD Whether it’s packaging, product development, brand design, marketing, manufacturing, distribution, or operations and logistics, you’ll get the in-depth, relevant and actionable advice and resources you need here at the Start to Sold Blog (https://www.emilyannepage.com/StartToSold/) OR YouTube Channel: (https://bit.ly/3cDZS39)
MORE ABOUT EMILY PAGE
Emily is CEO of Pearl Resourcing and has managed and launched multiple 7-figure brands in Costco, Williams-Sonoma, Kroger, and Amazon. She’s bringing you the expertise, resources, and mentors you need so that you can develop products and make them sell. She also offers business growth consulting (https://www.emilyannepage.com) and free advice for brand owners through START TO SOLD (http://starttosoldpodcast.com)
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