Phantom.R

My question is simply this..."How does a manufacturer or distributor go about convincing a wholesaler to take his/her new product?".

I think it would be interesting to discuss this, and certainly hear from some of the people here who have managed to secure distributor rights or open their own wholesale business.

And yes, I am asking about this because I just have secured the AU wide rights to distribute a brand new product. Don't get too excited though, it's nothing electronic. It's professional cosmetics for use in hairdressing salons. So specifically I am wondering about wholesalers of cosmetics and hairdressing supplies, but what about other industries too?

What do wholesalers want to see from new suppliers?

Cheers,

rosso75

They don't persaude most time wholesaler come to them

Zayis

Thanks for the reply.
So then how does "Product A" brought out by "New Distributor A/Manufacturer A" (who are currently unknown to the wholesalers as they are a new business) become known to the wholesaler?
You say that the wholesalers come to them but that would be impossible if the wholesaler does not know they exist. I know lots of existing companies who send their sales reps into wholesalers to sell new products, otherwise the wholesaler wouldn't even know the product existed.
So I wanted to know what's important to the wholesaler when assessing a new product to stock?

WingMan

New products are introduced to wholesalers several ways.

First, virtually all trade publications have a "new items" section where manufacturers can introduce new items in a manner similar to a press release, often with accompanying photo. Major advertisers may also have an article in the magazine on the new product.

Most trade publications include a "bingo card" where the reader can circle a number that corresponds to the code in the article or ad and get further information mailed to them by the manufacturer. There will also be a website address mentioned.

Manufacturers will also do direct mail using glossy promotional material, maybe samples, to distributors, wholesalers and wholesalers customers announcing the new offering.

They will usually time the introduction of the new item with one of the major national or international trade shows for that industry. This could be anything from miniature samples handed out by skimpily clad young ladies to full scale sales activity in the trade show booths.

In addition to the "triple whammy" of the trade press, direct mail and trade shows, they will have their sales reps doing "missionary work" with the wholesalers to develop "pull through" for the product by creating demand at the retailer or user level. This will often include introductory specials, free point-of-purchase displays, rebates, free goods and other promotional tools to get the product moving through the wholesalers rapidly.

They may also hold clinics or local mini-shows for the wholesalers customers, or depending on the distribution chain, the wholesalers customers customers to sit through possibly a meal and a demonstration of the new item.

So, you ask what is important for the wholesaler? For you to go out with his sales people and develop a market for the product. You will need more than slick advertising. You will need demonstrations that show the superiority of your product over the competition. You will need point-of-purchase materials to promote your product to the end buyer. You may, in your case, need to hold clinics for the people doing the selling or application of the product to learn about it and it's use.

Developing the "pull through" is what they are looking for. Educating their sales people. possibly putting together a "spiff" program for the wholesaler's sales people, offering a cash reward for package deals sold, or a trip to the top salesperson for the firm, etc. Getting the product past the warehouse walls.

kalso

Many, many thanks for your detailed and informative reply.
So basically, what we should be looking at is creating the 'pull-through' for the wholesaler?
Your post has certainly cemented a few things for me.
Before I read this, we were thinking about collecting 'orders in principal' from end-users in a given geographical area and then approaching a local bricks and mortar wholesaler about not only stocking and supplying the product, but also informing him/her that we have 10 starter orders already waiting for him from customers in his area.
Do you think that would be inviting/enticing?
I'm off to think of more ways we can support the distributor based on the ideas in your post.

BJStopper

That's a start. also, point of purchase advertising and displays would help.
.

merik84

we are million dollar company distributing SONY Ericsson handsets just started two years ago. I rememeber i was a trader selling PSP just like rest of traders did on this forums. Anyway, as a wholesaler we don't do a lot of advertising, usually customers come to us. It was tough at the begining, but now we have 7 employees.