How To Get a Retailer to Sell Your Product with Jennifer Davis (Episode #13)

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(uptempo music) – Today we are with Jen, the founder of The Blueberry Hill, again. And we’re gonna talk about how did you get your first retailer
to sell your product? – Well, we live in Salt Lake City, Utah, and we lived in a different house that’s close to where we live now, and just a few blocks away there’s a small children’s specialty
store called Babinski’s. And I walked in there and
said, hey, here’s what I have. And, luckily enough, they were interested and placed an order and we fulfilled it, and then, even the next month, they placed another thousand dollar order. And it was so exciting and just fun because it felt like, yeah,
somebody wants what I have. – Awesome, now did you sell the product to them outright, as a wholesaler? Did you do a consignment agreement where they agreed to pay you
if they sell your product? – With them at the time, I did. I sold it outright. And they had offered that to me, and so I thought, great, you know. – Is that unusual or is that standard? – I think I really just depends, you know. I think a lot of, if you’re
walking into somewhere local, I think a lot of people go about it with a consignment type of way ’cause there’s a lot of less risk on the retailer end, you know. But that’s no way to scale. You can’t really do
that on larger setting, but it’s definitely a
way to get into somewhere that otherwise you might not be able to. – Got it, and by scale, you mean– – Get in more stores, I mean, I can’t be doing nationwide
or internationally, oh, yeah, take it if it sells, keep it, if it doesn’t, I’ll take it back. It’s just not, you know,
a way to go forward, but it’s an easier way, it lowers the barrier to get into a store because, I mean, you’re
still taking up shelf space, but they’re able to say
hey, there’s no risk. If I don’t make money off of
it, it’s not gonna hurt me. – Got it, so it’s a good way to test without spending a lot of money, – Um hm.
– so, maybe to follow up from last show is, if you
didn’t do the social proof through an Instagram account, you could go through and see
if they’re willing to buy your product or even if it sells, but if you also–
– But it’s also nice to be able to take that to a retail store and say hey, we have this
many followers on Instagram, – Okay.
– or whatever else. I mean, it counterbalances each other. – How do you know how price it? Like, how much should I
sell it to wholesaler for? Another store? – If you intend to sell to businesses and not just direct to consumer, you have to start that from day one because, usually, the price that you’ll sell it to is a keystone price which is a hundred percent markup. Sometimes they really want more. Nordstrom, for example, really, you know, they say, oh, we have a
52.5% markup on this item. Can we get it on this as well? So, you need to leave room
in there from day one. You need to say I can make
a profit at this price even though it’s gonna sell
directly to the consumer at $20, you need to be able to
make a profit at 10, so you need to be able to get
your product for five or less. So, if you can make
– Or, maybe not, you know, I mean–
– your product for $5, you sell it to wholesaler for
10 who then resells if for 20? – There’s not a strict
rule on what your prices versus what you wholesale it for. Almost always, it’s gonna be keystone. The wholesaler’s gonna double the price. But, ideally, you can make it for $1 and sell it for $10 to the wholesaler. – Right.
– I mean, but it’s gotta be about scale, too. I mean, if you can do a lower margin and you’re makin’ it for eight or $9, you gotta sell a lot of widgets or whatever they’re gonna
be in order to profitable. – Well, perfect, well
thank you so much, Jen, for sharing your story about how you got your first retailer, and then join us again tomorrow for the next question in our series. – Thanks, thanks for having me, Jon. (uptempo music)

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