Your pitch must answer the question, “How will your product or brand drive my stores’ financial performance?”
Retail buyers are measured by the financial performance of their assortment or stores. Showing the market opportunity of your product helps retail buyers see how your product will help achieve their financial goals. In other words, how much in sales will your product drive for the retailer? And is this enough to help the buyer reach their goals? Here are two perspectives on how to demonstrate the market opportunity in your retail pitch – one from the Entrepreneur and the other from the Buyer.
From Romy, The Entrepreneur
When pitching to a retail buyer, I provide them with the following meaningful data to demonstrate how I am going to help them meet their financial goals: 1) how many UPSPW (units per store per week) we are moving at other relevant retailers (we can, in turn, determine what this means financially based on their specific store count); 2) how Psi Bands are going to help with their top and bottom line margins; 3) how we are going to increase their incremental sales (for Psi Bands, we do this by selling multiple SKUs aimed at different consumers); 4) my SKU recommendation (which SKUs I think will work best in their stores and why); and 5) how Psi Bands’ ongoing press is going to drive sales not only to their category but also to their overall store (note: we have an aggressive PR campaign so I highlight for them past and upcoming press, I demonstrate cases where the retailers have been “tagged” in those press features, and I remind them that we do not sell direct to consumers so everyone who visits our web site will be directed to our retailers).
From Vanessa, The Buyer
Buyers make buying decisions based on how your product will earn them more revenues and profits. To prepare your pitch, first find out and mirror their margin requirements. Secondly, understand their pricing strategy (e.g., Do they use ‘Good, Better, Best Pricing’?) and how your product fits in to this strategy (e.g., Are you Good, Better or Best?). Then, show your sales history from other reputable retailers, both in units and dollars, and the marketing programs used to drive those sales. This is critical in proving your product has selling power. Finally, use the sales history to build volume projections that demonstrate the market opportunity of your product. Make sure to include in your pitch presentation a slide that shows your sales history at other retailers and the sales forecast you have projected for those retailers.
About the Authors:
Romy Taormina is Co-Founder/Nausea Relief Chief of Psi Health Solutions, Inc., the maker of Psi Bands. Psi Bands are FDA-cleared acupressure wristbands for the relief of nausea due to morning sickness, motion sickness, anesthesia, and chemotherapy. Romy has hit the stage with her product Psi Bands with national retail distribution at Rite Aid, CVS, REI, Whole Foods, Meijer, Target.com, Walgreens.com, etc., and international distribution in five continents.
Vanessa Ting, Former Target Buyer and Founder of Retail Path, is a 12-year veteran of the consumer goods and retail industry. Vanessa has launched dozens of consumer products – both the super successful as well as a few good duds. In the process, she has honed her instincts to quickly identify a great idea and how to position that great idea into a successful product on store shelves.