Singular Sensation
It's your best product. Actually, it's your
only product. But you can still get big retailers to take notice.
URL:
http://www.entrepreneur.com/startingabusiness/inventing/distributionandlicensing/article45458.html
You've probably heard that big retailers tend to shy away
from one-product companies. Fact is, chain stores feel that with
the large amount of internal paperwork required to add a new
vendor, it's not really worth their time to bother with a
one-line company.
But that doesn't mean it's impossible to get the
attention of big retailers with only one product. Case in point:
Christopher Carter, 38, founder of Storm Master Corp. of Parker,
Colorado, whose Gutter Pump has successfully made it to the shelves
of Home Depot stores. It was certainly a lucky break-penetrating
large retail stores, even on a regional basis, is big business.
Carter expects 2001 sales to hit $400,000, and 2002 promises to be
even better, as Home Depots in several other regions are expressing
interest in carrying his product.
How'd he do it? Before his big break, Carter sold his
product mainly to independent hardware stores in the Northwest.
Home Depot took notice when shoppers familiar with the Gutter Pump
started asking for it by name in the company's stores. If
there's one thing big retailers hate, it's losing the
business of customers ready to buy. But more on that later.
The road to Home Depot was a long one for Carter. Like most
inventions, the Gutter Pump was born of necessity. Carter, an
engineer, regularly encountered trouble with his home's
downspouts-they always clogged during major rainstorms. Heavy rains
pushed leaves into the downspouts, plugging them up and causing
water to overflow. Fed up, Carter finally decided to solve the
problem himself. In 1993, he created a simple, mechanical PVC
gutter pump with no moving parts. For a while, Carter was quite
content just letting his prototype do its work on his own gutters.
But then in 1995, Carter's father-in-law fell ill-leaving
Carter in need of extra money to pay the medical bills. He decided
to develop and sell his invention.
By the spring of 1997, Carter had made 1,000 units and was ready
to attend two trade shows-the Rocky Mountain Home Show and the
Denver Spring Home & Patio Show. Using an effective display to
demonstrate how the pump worked, Carter sold 500 units for $6
apiece. He also met several experienced salespeople who were
selling a noncompeting product. They liked the Gutter Pump so much
that those eight manufacturer sales reps committed to selling it
during the 1998 home-show season.
| One-Product Pals | |
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details, visit the Web site or call (973) 808-7355. If you're
still early in the process of trying to sell a patent or product
idea, try one of these sites:
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Later in 1997, Carter attended a QVC event in Denver, where
hundreds of inventors competed for QVC's attention. "There
were 250 people with new products at the event," Carter
remembers. "QVC only chose 20, and we were one of the
20." The Gutter Pump sold so well on QVC that the channel did
ask him back, but only a few more times. "QVC was our first
big sale, but it didn't last," says Carter.
"Fortunately, we had good sales from our representatives who
worked the home shows throughout the country." Carter
approached big retailers in this crucial early period. But, he
says, "They just weren't interested in carrying our
product."
Carter knew that even his success at the home shows wouldn't
last for long. "They just want new products all the
time." So he packed his bags and took the Gutter Pump to the
1998 Hardware Show in Chicago. Several catalogs bit-such as
Brookstone, Improvements, Jerry Baher Master
Gardener, Lee Valley Tools and Silvo Home. Those
sales kept the company alive in 1999. But the big retailers? Again,
says Carter, "We were perceived as just another 'one-SKU
wonder.'"
That show opened up another door for Carter, though. While
there, he met husband-and-wife reps Alden and Beverle Kottke of
Beverle Alden Enterprises, who eventually sold the Gutter Pump to
nearly every independent hardware store in Oregon and
Washington.
At that point, Home Depot was starting to feel the pressure.
People would see the Gutter Pump in a hardware store and think it
was a great product but put off buying it till later. Then,
they'd head down to Home Depot, money in hand. After two years
of turning customers away, telling them they didn't carry the
Gutter Pump, Home Depot's buyer for the Northwest finally went
to see Carter. Customer pressure also helped Carter's company
land an account to sell it in Ace Hardware stores nationwide.
Part of Carter's success came from staying loyal to his
reps. He's given them full rights to all Home Depot stores and
allows them to sell to anyone in the country.
Carter knew that trying to keep Home Depot as a house account
would have been a mistake. "The reps have been the ones who
built the customer base that landed Home Depot," he says.
"I want to give them a chance to make big money on the
product, because that's what motivates them to keep
selling."
Carter also realized that although advertising is important to
big retailers, it's not essential. What impresses them most is
that customers come in and ask for the product. So if you can't
afford to advertise, concentrate on one market and get into every
store you can. The big retailers will come around-even for a
"one-SKU wonder"-if enough people want to buy your
product.
Typically, inventors do best by concentrating on their local
markets. That way, they can easily give demos, provide units on
consignment, send friends in to buy the products and check in on
each store to ensure products are being displayed correctly. Most
inventors don't have the time to lock up a local market if
they're simultaneously attempting to sell on a national level.
Rather than spread yourself too thin, take Carter's advice and
thoroughly sell out one market. That's usually good enough to
get you into the local stores of a large retailer. Then, if you
sell well in your local region, you'll have a great chance of
being picked up by the chain across the country.
| But will it sell? | |
| For a realistic
evaluation of your big idea, check out the Wisconsin Innovation Service Center at the
University of Wisconsin in
Whitewater. Since 1980, the service has assessed more than
6,000 ideas. A big advantage of this program over others: Marketing
students at the university conduct a fairly thorough market evaluation, researching both competition
and market benefits. Plus, the program is completed under a
director's supervision. Evaluations cost $495, and most reports
number 100 to 200 pages in length. For submission information,
contact Milissa Rick at (262) 472-1365. |
Don Debelak is a new-business marketing consultant and author
of Think Big: Make Millions From Your Ideas.
Send him your questions at dondebelak@qwest.net.
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