How to get my product to market??

jah718

Hi,

I have set up a distribution company. I am mainly dealing in accessories for phones and tablet computers, as well as speakers earphones and whatnot. The products I am selling are high quality and would be at home in any high street store.

I have set up distribution agreements with three companies in Asia and everything is ready to go. My prices are very reasonable and I can undoubtedly undercut most suppliers in the market at the moment as I am willing to make a small margin in order to get business.

But I cannot seem to get my foot in the door with any shop, I am either met with no reply or I cannot seem to find out how to get in contact with anyone. Also, the selection of accessories on sale at the moment is dire, especially for the new Iphone 5 or Galaxy s3.

Is there anyone that has experience in this business that can help? I am desperate to get this business going as there is a lot of money to be made.

Thanks for your replies!

Peterdalkey

It is rather strange/brave/foolhardy that you would set up a wholesale distribution company targeting a sector in which you have no contacts. Did you you do any trade market research before getting to this point?

Why will they not deal with you? Some questions.
Are you a VAT registered business?
Ltd company?
Do you have a large enough range of product to be worthwhile taking on as a supplier?
Do you have stock ready for immediate shipment on the ground in Ireland?

Your best bet is probably to set up an eCommerce website selling the products at retail pricing and then list the retailers who sell your products too. You can get the retailers interest by giving them exposure on the site. Make sure to leave them a decent margin (30-50%) ex VAT. This way even if you dont get a big wholesale trade, you will make money by selling these hard to find items at very juicey margins for yourself.

hope these thoughts help


cheers

Peter

Ballyv24

If I am looking for any of the products that you are describing I usually try adverts.ie or ebay.ie first. You could try setting up on one of those sites?

I almost always buy from the online shops that offer free next day delivery to Ireland.

donalg1

If I were you I would start selling them on ebay for now and if you want to go further then you could always continue to try get them into shops whilst selling them online, and you could show the shops that they are actually selling.

jah718

I am registered as a sole trader trading under a business name.

The thing is that I set it up without any cost, I don't have any stock in Ireland, if an order is placed, I can have it in Ireland within seven days. I have everything arranged with the supplier and a DHL account.

The reason I am not going down the retail road is the large start up costs involved. Doing it this way allows me to minimize expenditure and limit risk.

I realize that setting up without contacts was foolish but because I have not really taken any risk, it wasn't that foolish an idea.

As far as the product range goes, I have products from three companies, each having a large product range. So, if a shop was to do business with me, I could supply all of their products in this sector.

Thanks for your feedback guys, I need all the help I can get!

Peterdalkey

jah718 wrote: »

I am registered as a sole trader trading under a business name.

The thing is that I set it up without any cost, I don't have any stock in Ireland, if an order is placed, I can have it in Ireland within seven days. I have everything arranged with the supplier and a DHL account.

The reason I am not going down the retail road is the large start up costs involved. Doing it this way allows me to minimize expenditure and limit risk.

I realize that setting up without contacts was foolish but because I have not really taken any risk, it wasn't that foolish an idea.

As far as the product range goes, I have products from three companies, each having a large product range. So, if a shop was to do business with me, I could supply all of their products in this sector.

Thanks for your feedback guys, I need all the help I can get!

You have now answered your own question as to why nobody will deal with you. Effectively you are a non-stocking wholesaler or more correctly, acting as an agent trading on your own account. No risk, no business!!

Sure you have nothing to lose and I fear little to gain. Remember the old business adage, if it was that easy, everybody would be doing it!

Best of luck with it.

Peter

PS I am puzzled why you posted this topic here at all!!

jah718

I am a little bit confused with why you have to take such a hostile tone when replying, I seen on another thread you shot down someone elses business idea.

Not everybody has access to an unlimited supply of cash, you know. I took this approach as I do not have access to start up money as banks will not touch a young person nowadays. Obviously, if I had cash, I would have a shop on Grafton street and would be making a fortune, also I would not need to post here.

Regarding your confusion on why my topic is posted here at all, this is specifically what this forum is for. I am trying to succeed in business and I asked for peoples advice. Believe me, my current situation is far from ideal but what do you propose I do if I don't have any money. Do you think every business was set up on a mountain of cash? Are you a Millionaire and so have the authority to criticize everyone else's entrepreneurial attempts?

I am trying to succeed here and am making do with what I have, its not ideal but I am still trying.

PS: regarding being a non stocking wholesaler, if I were to have a customer, they would not have to be aware that I do not hold stocks in Ireland, as I can still have a reasonable delivery schedule without tying up large amounts of money in stock. I would think that if it can be done then it would be the ideal way of doing business?

Peterdalkey

I am genuinely sorry you take my comments as hostile, they are intended to be pragmatic and honest. If they are invalid, they will be unmasked here as such. Business is tough and the environment very harsh, the very idea of this forum is to get the critque and advice of those posters with experience. If the idea is that fragile that a few words can damage it, then it is probably a benefit before real money is lost.

There is nothing personal in my comments, but if you post in public, expect direct responses from the genius to the complete crackpot. If you learn something you did not know or consider before, then you are a winner!! It is you who will make all the decisions at the end of the day. Balance all the views you get and you will be able to make the most informed decisions.

Best of luck with the project

Cheers

Peter

I always get a bit crankier when the days are shorter!

jah718

Thanks, I appreciate your comments. I realise it is a bit of a shaky business idea!

I had hoped it would work out and I still do. I need a bit of criticism from time to time.

Peterdalkey

A gracious response!

P

riveratom

jah718 wrote: »

Hi,

I have set up a distribution company. I am mainly dealing in accessories for phones and tablet computers, as well as speakers earphones and whatnot. The products I am selling are high quality and would be at home in any high street store.

I have set up distribution agreements with three companies in Asia and everything is ready to go. My prices are very reasonable and I can undoubtedly undercut most suppliers in the market at the moment as I am willing to make a small margin in order to get business.

But I cannot seem to get my foot in the door with any shop, I am either met with no reply or I cannot seem to find out how to get in contact with anyone. Also, the selection of accessories on sale at the moment is dire, especially for the new Iphone 5 or Galaxy s3.

Is there anyone that has experience in this business that can help? I am desperate to get this business going as there is a lot of money to be made.

Thanks for your replies!

Hey OP,

I don't really get your idea. Why would these shops who you plan to sell to not just buy the stock in themselves directly from suppliers abroad, instead of paying extra for them coming from you?

jah718

Well, you could ask that of any industry, shops don't generally tend to buy stuff in by themselves, if every shop were to do this then there would be no such thing as a distributor. Shops sell many different products so it is not really feasible to source them all themselves, it takes time to contact suppliers in Asia, you have to first find the product, get in contact, make agreements, organise shipping, customs and many other things.

It is pretty common knowledge that most shops don't do this, they find a distributor to do it for them, and they pay a premium so they don't have to do this.

TsuDhoNimh

jah718 wrote: »

Well, you could ask that of any industry, shops don't generally tend to buy stuff in by themselves, if every shop were to do this then there would be no such thing as a distributor.

It's far from my area of expertise, so apologies if I'm off the mark here, but don't most of the distributors carry benefits for stores above and beyond just removing some of the legwork?

Most of the distributors I have/do work with have had exclusive rights to the goods they carry (so you can't bypass them if you wish to stock those goods in this region, be it just Ireland or all of Europe in some cases) or else handle all of the backend work (as you mention) but can provide the products in a much faster time frame (same day or next day) allowing the store to operate with a JIT (just in time) system, both of which carry a significant and obvious benefit.

Having said that, there is room for operating in the manner you're proposing although it's far more common to do it in a B2C setting than it is in a B2B one. It just means that it makes your job more difficult to make the sales and you need to provide enough benefit to the stores to warrant the additional costs you'll be adding to the stock.

Your best bet is to speak with your target market and identify what the issues are that are causing the lack of interest.
Is it the stock itself that isn't what they wish to carry?
Is it the cost of the stock that's too high and not enough room left for their margin?
Is it an issue with the confidence they have in you (e.g. lacking in insurance, no track record in the industry, issues with the potential quality of the stock)?
Is it a problem with the proposed method of payment (e.g. lack of credit terms, requirement for payment upfront, etc.)?

jah718

Thats a good point, but as far as the products are concerned, I do have the exclusive rights regarding the products that I have on sale.

On your other points, I think the benefits that you described that distributors can offer are more applicable on other products. In the case of this type of product, it can be ordered months in advance, it can be stored easily and is not necessarily something that needs to be ordered on a next day basis.

I think a benefit of my products is that I am willing to take a hot on profits, any prices that I have quoted are outstandingly cheap, and these products are all from reputable brands. I am offering my customers enormous margins, you wouldn't even believe the amount of markup on your standard Ipad case, it is incredible.

All of your points are interesting and I have thought long and hard about what to do.

Also, just a point on my initial post, a large problem I am having is not that they are turning me away, but rather that I can't get in contact. Any large stockists of these products, I am finding it very hard to find any contact info at all, let alone the phone number for their purchasing department. That is one of my biggest issues.

paddymc1

Product2Market
https://www.facebook.com/Product2Market

riveratom

jah718 wrote: »

Well, you could ask that of any industry, shops don't generally tend to buy stuff in by themselves, if every shop were to do this then there would be no such thing as a distributor. Shops sell many different products so it is not really feasible to source them all themselves, it takes time to contact suppliers in Asia, you have to first find the product, get in contact, make agreements, organise shipping, customs and many other things.

It is pretty common knowledge that most shops don't do this, they find a distributor to do it for them, and they pay a premium so they don't have to do this.

I know it's common knowledge and that people use distributors and wholesalers to source their products. I should have expanded on my post - what I am more driving at is what you are doing involves just researching some overseas suppliers, bringing in stock and making a tidy profit, then why isn't everyone doing it?

I think that this is very likely why you are finding it hard to reach people - there's a good chance it's a 'closed shop', and shops have tight, exclusive agreements with a select few distributors. Most likely the would be using these guys for a whole range of products, as it makes sense to deal with them on lots of product ranges and buy in bulk to keep prices down, rather than getting tied up with dozens of distributors and paying more overall.

Just a hunch I have.

Shoe in

I worked in a mobile phone network.The mobile phone network stores tender the phone accessories business to selected suppliers.The contracts are usually for 3 year periods.

If you want any more detail feel free to PM me.

jah718

jah718 wrote: »

It is pretty common knowledge that most shops don't do this, they find a distributor to do it for them, and they pay a premium so they don't have to do this.

Thats not true dude not what your trying to do anyway. I have a distribution company, and unless your products have something distinguishing like a patent or you are exclusive distributor companies arent willing to buy stuff through a broker from china. It just doesn't make financial sense to lose that 30% for something you could organise yourself in a day very easily. And there is also issues with quality control, delivery times, delays and other stuff going wrong in china which large retailer cant afford.

Your also trying to do this in a market where the retail sector has shrunk massively so any companies who are on the ball at all will be sourcing directly themselves because they cant afford to pay this premium you are talking about margins are simply too tight.

You gotta be realistic about this, you are not doing anything here that is difficult and your not taking any risk because you have no stock. Your probably looking for payment upfront/downpayment whereas retailers work on 30-60 days credit terms.
I would knock it on the head and not waste anymore time on it, put your entrepreneurial mind to something there is a demand for. Theres no demand for your service and this is the reason your not getting orders.