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The Litter Box by David Catt
Retailers, You and Manufacturers
2004-05 - David B. Catt - all rights reserved

OK! This brief may go little off the mark of what doing business is trying to do to you. How nice
things would be if as a business we could rely strictly on "tell a friend" referrals and internet
sales. I have been asked many times why our companys item is not in stores [yet]. It is
not due to lack of trying. There are many things involved in dealing with retailers that most
people are unaware of.

First, the big "Catch 22". Stores want to see large volume of sales before they will think about
putting a merchandise on the shelf. In other words, they want proof that a merchandise move off their
shelf. The "Catch 22": how do show them large sales when the item is not in a store?
How large is large? In the dazzling old days, a mom and pop store would put your item on
the shelf on consignment i.e you got paid only for item sold less a percentage. It was an
excellent starting point to make sales. Do you still have a mom and pop store where you live?

Here is an idea for you to pass along to your most acclaimed retailer: Why not start a "new products"
display at the entrance of your store to help you and manufacturers (especially beginning-ups)
introduce products to your customers. Do not sell them just display along with the selling
price. This display could even be a bulletin board with pictures of products. Have a comment
box available so customers might give you feedback and even request you carry an merchandise . The
small amount of space lost should pay off as a simple and good way to test new items
while minimizing your investment.

Did you know that most retailers charge manufacturers a "slotting fee". This is basically rent
for shelf space. I have heard a manufacturer got charged $40,000 for one "slot" in a test region.
Imagine nationwide cost? I wont even touch a retailers markup on an item other than to inquire of
you if you think the retailer loses funds when they sell you something at 50 percent off? They
have overhead too.

There is one store that many point out would be a great place for our item. Maybe yes and
maybe no. Recently, an excellent article was brought to my attention. You may find this article
at http://www.fastcompany.com/magazine/77/ and read the story. Scarey! Where do you
shop? Is the company you work a supplier?

Just a little something for you to think about on the next measure you stroll into a retail location.

Until the litter box needs emptying again!

Stand Ready (tm) brand Inverted Bottle Holder tip of the week: If you have arthritis or other
impairments that build turning a bottle over difficult, then you will appreciate the reduced
motion required to utilize your bottled products when they are stored in our holder.
Until the litter box needs emptying again!