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Advice For Approaching Retailers About Counter Space For Selling a Product?
Posted on 12/6/17 at 6:34 pm
Posted on 12/6/17 at 6:34 pm
I'm interested in selling proprietary dvds to select local retailers. I'm thinking I have 3 options with them:
1. I purchase the stock and provide the outlet with 23% net sales. ($29.12/10 or $2.91/1 dvd on my end, retailer makes $3 per dvd at $12.99 MSRP)
2. I sell the stock to the outlet at a fixed price ($100/10 dvds), which nets me $70.88/10 dvds or $7.09/dvd), and they recoup 100% of sales.
3. I rent counter space from an outlet, and I recoup 100% of sales.
Am I in the ballpark here?
1. I purchase the stock and provide the outlet with 23% net sales. ($29.12/10 or $2.91/1 dvd on my end, retailer makes $3 per dvd at $12.99 MSRP)
2. I sell the stock to the outlet at a fixed price ($100/10 dvds), which nets me $70.88/10 dvds or $7.09/dvd), and they recoup 100% of sales.
3. I rent counter space from an outlet, and I recoup 100% of sales.
Am I in the ballpark here?
This post was edited on 12/6/17 at 6:35 pm
Posted on 12/6/17 at 7:06 pm to shutterspeed
quote:
proprietary dvds
Posted on 12/6/17 at 7:35 pm to shutterspeed
Do you know the retailer will sell it? Even in home workouts are now downloaded straight onto a PC. I honestly can't think of one industry that still ises DVDs to get their content out except films, which I am assuming this is not.
Posted on 12/6/17 at 8:02 pm to shutterspeed
The kind of DVD's would be a large determining factor on whether or not your idea is feasible.
This post was edited on 12/6/17 at 8:03 pm
Posted on 12/6/17 at 9:39 pm to StealthCalais11
It's a locally produced feature film that has a niche (weddings/pageants). I've had $3.5k in sales in 8 months, mostly at the $3.99/$4.99 rental range through Amazon streaming.
I think the dvds would appeal to people locally as an impulse buy in wedding shops and the link. I don't see why a retailer wouldn't take it on--especially without having to shell out anything up front. I just want to make sure what I'm offering is reasonable before approaching.
I think the dvds would appeal to people locally as an impulse buy in wedding shops and the link. I don't see why a retailer wouldn't take it on--especially without having to shell out anything up front. I just want to make sure what I'm offering is reasonable before approaching.
This post was edited on 12/6/17 at 9:43 pm
Posted on 12/7/17 at 7:00 am to shutterspeed
quote:
1. I purchase the stock and provide the outlet with 23% net sales. ($29.12/10 or $2.91/1 dvd on my end, retailer makes $3 per dvd at $12.99 MSRP)
2. I sell the stock to the outlet at a fixed price ($100/10 dvds), which nets me $70.88/10 dvds or $7.09/dvd), and they recoup 100% of Sales
3. I rent counter space from an outlet, and I recoup 100% of sales.
My wife has sold products through a few boutiques. Once with an arrangement more like #2, however she was responsible for remaining inventory. So rather than selling them a lot of product, she effectively sold them only what they could sell. 70% is high for the store, if they are truly selling them at your suggested price. This #2 arrangement depends on the store being able to discount the product to move it.
All her other arrangements have been a combo of #1/#3. She effectively pays a fee to be in the store, and they take a cut of the sales, generally 10%. All sales and fees are handled through the stores system.
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