"Free stock" promotion - likelihood of success- thoughts?

For 3 different children's products, suitable for sale in both
bookstores and toy stores, (items carry UPC and ISBN numbers) we are
considering sending "cold" an initial inventory of product for sale,
free of charge to retailers, with the express purpose of gaining shelf
space and securing paid re-orders of same.

While we would not provide a full Point-of-purchase display until paid
reorder, we would want the merchandise to be of a high perceived value,
and attractively displayed.

We are considering two possibilities- 1.Plastic stands for each item
that would take up approx. 3 sq inches (footprint) of shelf space each
(and approx. 7 inches standing height). We would send 10-12 of these
items in this promotion. Or 2. a merchandising "clip strip" die cut
plastic hanging strip, preloaded with same items but without the
plastic stands so they would now be flat for insertion into clips.

Any thoughts on either, or on the concept of free intitial inventory?
Thank you.

Sending 10 - Items to kid product retailers as an incentive to be
awarded future shelf space...

TWO THUMBS UP .

Yes, this samplng marketing scheme has real potential, but NOT as it
stands.. Here are a few notes for your consideration:

Firstly, I'm not sure what you mean by "cold", but I'm assuming that
your package of wares will serve as your initial introduction to your
company?
Don't even think about sending 10-12 units with no signed agreement.

Just send two products, (with the hopes that they will give one away)
your best, along with color photos. catalogue or website URL, a proposal
to "partner" with you (on proper letterhead), pending a commitment to
engage in a feasibility study. Include a short description of your
company and it's CEO. Give a bit of you profit away to the needy kids,
and tell retailers they are also joining a good cause. Make sure it's
true.

If they approve the single product sample, by phone, they may
participate in the feasibility study by faxed agreement. Your phone
manner needs to be beyond impeccable.

They then receive TWO future orders of 11 units, NO BILL, and a POSTAGE
PAID press PUBLICITY package for them to ship the new product or family
editor of their local paper. Within the publicity kit introduce your
product and company, how y'all are also joining a good cause.
...and mention that its available at that particular Store. Offer them
a limited exclusion and become a partner to build store traffic.

This is awarded to retailers who respond within 30 days and agree that
all subsequent orders will be displayed to your policy standards. There
is no commitment to future stock if of the product if the product does
not produce the intended results.

Your standards are a prominently displayed vertical strip. When you
design the strip, be sure to go quality all the way with your display
board atop the strip. Make it sizzle! (This means very strategic use of
Hi-Resolution photography/ printing, illustration, and mainly good COLOR
strategy... Consider a split-triad color scheme with PURPLE or LIME
GREEN as one of the dominant colors.

In retail EYE-LEVEL is BUY LEVEL, so the vertical strip insures you
are at eye level, and further at "touch level" whereas the shelf
stocking guarantees nothing. Using the VDU (Vertical Display Unit) is
highly recommended.

Retailer also must position you in one of several store "hot spots".
This info you can easily find online under "merchandising techniques"
and "planograms". Selling is the name of the game and these guys will
want to buy after your product begins to move.

You won't see a return on your initial outlay until the subsequent units
are sold.. therefore only offer this to high volume, quality, smaller or
mid-sized retailers or small chains, unless you are financed well enough
to get into the larger stores chains, in which case I would not abandon
this strategy for a different one.

The reason for offering two orders instead of just the one is to show
stability on your part which reduces objection. It also "ups the ante"
for the retailers. It shows CONFIDENCE in your product and makes your
company a little more attractive at the end of the day.

Be picky about who you offer this to. If you conduct a marketing pareto
analysis (quantitative marketing research) to determine where your sales
will likely come (80% of your sales will likely come from from 20% of
your market), sending double product to that 20% of retailers won't cost
you any more outlay, you just send it to BETTER TARGETS for a better
final outcome, and drop the weaker targets from your plans.

An example of a company who effectively applied this strategy to the
shipping industry is J.B. Hunt Transport Company. The first shipment was
a freebie. Consignees loved it. They ordered more as was hoped. Old "JB"
made millions... became Numero Uno.


Success to you and yours...

~zion~

PS
Don't forget us "working guys" when you hit the big time =)

Zion, Thanks for the detailed response.

> Firstly, I'm not sure what you mean by "cold", but I'm assuming that
> your package of wares will serve as your initial introduction to your
> company?

That is correct- we will send them to the retailer with no prior
contact- it will serve as the introduction, trumpeting "$80 worth of
merchandise- free of charge" or similar.


> Don't even think about sending 10-12 units with no signed agreement.


Zion, I'm confused about that point. What signed agreement? We will
make it clear that they are free to pocket revenue from initial
inventory and no obligation to either pay us or put in paid reorder. We
will, naturally, include our wholesale brochure for them to reorder
from, but obviously the commercial terms and prices will then apply on
reorders, as described in brochures, and agreed to by them as indicated
by PO or paid order either check/credit card, and order form.
>
> Just send two products, (with the hopes that they will give one away)
> your best, along with color photos. catalogue or website URL, a
proposal
> to "partner" with you (on proper letterhead), pending a commitment to
> engage in a feasibility study. Include a short description of your
> company and it's CEO. Give a bit of you profit away to the needy
kids,
> and tell retailers they are also joining a good cause. Make sure it's
> true.
>
> They then receive TWO future orders of 11 units, NO BILL, and a
POSTAGE
> PAID press PUBLICITY package for them to ship the new product or
family
> editor of their local paper. Within the publicity kit introduce your
> product and company, how y'all are also joining a good cause.
> ...and mention that its available at that particular Store. Offer
them
> a limited exclusion and become a partner to build store traffic.
>
>

Zion, all interesting...trying to turn the tables somewhat and have the
retailers called to action...and the PR kit in initial package is great
idea. BUT I'm not convinced that spending a little more (our product's
incremental cost to product is quite low- basically printed paper) and
just giving them the initial full inventory isn't a better idea than
trying to create this image of exclusivity...since it takes away the
element of "put it on shelves now and see if it sells...and you keep
the $"

> Your standards are a prominently displayed vertical strip. When you
> design the strip, be sure to go quality all the way with your display
> board atop the strip. Make it sizzle! (This means very strategic use
of
> Hi-Resolution photography/ printing, illustration, and mainly good
COLOR
> strategy... Consider a split-triad color scheme with PURPLE or LIME
> GREEN as one of the dominant colors.
>
> In retail EYE-LEVEL is BUY LEVEL, so the vertical strip insures you
> are at eye level, and further at "touch level" whereas the shelf
> stocking guarantees nothing. Using the VDU (Vertical Display Unit) is
> highly recommended.
>

Well, I like that, but we now realize toy stores and bookstores arent
big on clip strips ...they arent really set up for it unlike mass
merchandisers or home improvement stores where they are common. We may
be taking a chance with these due to lack of familiarity with them in
book/toy retail stores. We may have to go with inexpensive board POP
combined with adhesive hooks on each item to give retailers choice of
shelf (POP) or on hooks.

> Retailer also must position you in one of several store "hot spots".
> This info you can easily find online under "merchandising techniques"
> and "planograms". Selling is the name of the game and these guys will
> want to buy after your product begins to move.
>
> You won't see a return on your initial outlay until the subsequent
units
> are sold.. therefore only offer this to high volume, quality, smaller
or
> mid-sized retailers or small chains, unless you are financed well
enough
> to get into the larger stores chains, in which case I would not
abandon
> this strategy for a different one.
>

Not a problem- as mentioned earlier, low incremental production
cost...which is why we are considering this route. We are even working
on securing low bulk or bound printed matter mailing rates- literally a
cheap bulk mailing of free inventory. Reorders are icing...

> > Be picky about who you offer this to. If you conduct a marketing
pareto
> analysis (quantitative marketing research) to determine where your
sales
> will likely come (80% of your sales will likely come from from 20% of
> your market), sending double product to that 20% of retailers won't
cost
> you any more outlay, you just send it to BETTER TARGETS for a better
> final outcome, and drop the weaker targets from your plans.

See previous response....cheap to produce and mail so we may not be too
picky.

Thanks again

Thanks for the additional info.

Sounds like you feel you know what your doing. And It could work. . hey
life is often stranger than fiction. But as one who has spent
considerable time with corporate buyers, I hold that although your ideas
have merit they need real work and refinement.

Assuming you are going after decent size fish, and you should be
(chains, and not toy shelves in little Ma & Pa boutique stores, gift
shops etc.). The introduction is too low budget.
The product is cheap to produce, yet the retailer incentive is but
peanuts =3D Red flag.

Grab a spreadsheet and draft up a realistic proposal quantifying the
real sales projections over several sales seasons, or change your target
to impossibly small outlets.

Forget the ability of the money as an incentive.
My suggestion was to use the promise of free product (after entering
contract) as a "gentlemen's add on" of sorts... speaking well of your
company. If you double your offer it may catch some interest, but
probably not from businesses you want to deal with.

You need to spend more time getting "mentally" behind the eyes of your
target... the buyer .. before you crystalize your plan. There was once
upon a time that I thought that 1,000.00 was a lot of money. Really I
was projecting my own needs at the time out onto my prospect.

Be careful of opening supplier accounts with your corporation as if you
are in crafts or offering flea market deals. For the major league
retailers, the days of buying an "arm full of this and two armfuls of
that"=A0out the back of a station wagon are long over and done with.

If you're going to stomp with the big dogs, your first move is always to
position your company as a true contender in the eyes of the buyers.
Another big dog.

Remember this, friend, I will bill you nothing for it, yet it is one of
the most important & potent secrets I have dared to share in this august
house:

If you can't talk to me in millions, please come back when when you are
ready to talk. You have no problems that a decimal point cannot solve!

The big business arena is somewhat like a large casino with all types of
gamblers. Those who are serious about revenue, don't hold up 25 cent
slot machines all day. You man up to the craps shoot where your presence
- and potency- can be felt and appreciated. That's if you are there
under serious intent.

Introduce yourself. You can't hide behind a product, even a good one.
Every buyer worth his salt has a nose for non-dependable suppliers. They
J- walk. Take shortcuts.

Always speak in the language of the listener. They must see you
speaking in terms of tens or hundreds of thousands if not millions or
tens of millions. That's the language of the game. You would not want to
step up to the tables speaking spare change, any more than you would
want to invite the Queen of Egypt to Burger King.

After selling costs, your 80.00 is probably more like 30 or $40.00 into
their business account. Tell me, Sir, how powerful of an incentive do
you REALLY expect 35.00 to be in light of the fact that the product is
coming from an unknown and unproven entity you don't know from Adam and
a can of paint.

The individual being forwarded your products is part of a system that
must keep duds out as well as find winning dogs, and they likely fly all
over the world to scout one. If it is a large modern superstore the
weekly product turnover may be in excess of 2 million. Yes, that could
mean a store is taking in excess of $100,000,000.00 a year, ...which
is more than the annual turnover of some small companies are turning.
But even small fry's might do 2 mil. a year in product sales. Divide by
52 and do the math. A trumpeted $80.00 tot. adds up to about the nicest
insult they ever got.

Its a fairly safe bet that even if the company is mid-sized, the work
pace is serious and they would like to be treated with the utmost
respect as the first way to introduce yourself. You want to not only get
in, but have staying power.
When your product arrives, it will interrupt the days work concerns...
merchandisers and allocators haggling what product to put into which
store and in what quantity, and what to do if the product doesn't move.
Or worst moves, but moves slowly, meaning the logistics department would
have to work out delivery schedules and keep in touch with buyers and in
store personnel.

Even If it's a one person shop.. add in administrative distractions: a
whole range of hats on one mad hatter. Personnel Manager. Training
Officer. Visual Merchandising expert. Departments manager. Legal
compliance mule.Yada yada ya.

As a business professional, in the midst of all this, I wouldn't like
some guy very much if he just upped and made it his personal mission to
dump 12 japapaloozas into my storeroom... he may as well had jumped the
fence over at corporate... same basic effect. Just another distraction
I'm now forced to deal with.

So when I say "Don't even think about sending 10-12 units with no signed
agreement."
and you say "Zion, I'm confused about that point. What signed
agreement?"

I'm speaking of the one which should precede any order. The one you will
be awarded because you demonstrate classical professionalism and client
interest in all you do.

And when you say "We will make it clear that they are free to pocket
revenue from initial inventory and no obligation to either pay us or put
in paid reorder."

I say there is no advantage to them with that amount, one time, after
costs. Rather, more of a distraction.

Of course if, however, you have limited concern about the outcome, by
all means, just send it cold.

~zion~

Interesting response.

If anyone has an idealstic persona,you may want to pass this post by -
It's about to get down and dirty.

I see things somewhat going into two topics, but rather than to seperate
them, I will try to respond as you presented your points.

Sincerely, I think its awsome that there is a market for the hormone
free milk you drink. However, too bad most people don't care about that
topic, isn't it?

We cannot however use this market to rebut the point about motivations,
because we are bound to run into another motivation, (although not an
exclusive one) which is fear. (Fear of ill health plays a large role in
this market).

On cosmetics, it is true that many manufacturers are not testing on
animals, but not for moral reasons. Rather the MBA's have figured out to
counsel the corporation about the "political correctness" of certain
labels and processes.

"Political correctness" is really not about the other guy's welfare. And
her's the real rub - more need to be tested! Cosmetics are a real source
of toxic materials (tars, etc.) introduced into the bloodstream... most
women are not aware of just how polluted those things
are, lipstick and all.

As far as schools, true, there are good "pockets". But again, consider
the norms to be most realistic. You may or may not be aware that the
U.S. is now in a major education crisis, with an UNPRECEDENTED drop out
levels at the H.S. Level NATIONWIDE. When I was a young buck dropping
out was this major taboo.

Now, in California alone, the drop out
rate's well over 50%. That should make someone reading this loose at
least a little bit of sleep. It'syet another sign of short range
thinking permeating every aspect of contemporary society. The want for
EASE creeping on us more every day.

The idea that "school is a hastle". A lack of motivation to something so
positive has crept in and is taking over our kids.
They are following "who's" example?

We hear about child obesity and the resulting heart disease- yet we take
recess and playtime out of school.

There are a few things you said which concern me a little...they concern
me because lot's of people probably think this way (??) You say:

"I don't believe it is necessary to adopt orphans or be advocate for a
cause in order to live a life that is not ruled by those base emotions
that you mentioned. In your daily life you can strive to bring happiness
to everyone you interact with and still get your piece of the pie, so to
speak."

I found this confusing. You yourself are an
advocate for the environment.(?) This seemed to put you on both sides of
the fence, until I realized you are anti-activism.

You go in to say that:

"I don't believe it requires heroism to live a good life. If someone
does some minor act of kindness like smiling and greeting a clerk at a
store, then they have brightened that person's day just a little bit.
That person perhaps will be in a better mood and spread that feeling to
others."

What about B.F. Skinner. Better yet, read Erickson. Without a functional
understanding of human psychology (the full scope of which would
admittedly take us away from the
original topic) we have not much of a meaningful discussion at all, just
opinions.

Ericsons Stages of human development: One key fact about your argument
it has been researched and proven that a smile is NOT innately an act of
mercy, rather it is a SELF survival mechanism.

As such, it actually does NOT fall outside of my original 4 - 5
fundamental human motivations.
>From babys first smile, the smile serves to creates EASE for the smiler.
All good sales men know that. Thus even McDonalds "loves to see you
smile".
Since from a babys first smile, it becomes a form of social manipuation
to create the bonding response and facilitate connection, it falls well
within my assessment of motivations. In fact, the first smile if quite
accidental.

As adults, throwing a life of borderline apathy behind a purposed smile
to joe across the hedges does not make it become true grace, IMHO. If
anything, it is an excercise in
socialzation, and not much else. Yes it's a good idea for you, but not
because it makes the world better (though it just may make YOUR world
better). For most of the pain
and suffering in the world, it unfortunately does not amount a hill of
beans, and a hill of beans may be of more real value.

You then say:
"If you help a friend, then you have just done
something good for the world."

Really?
Funny, because I actually studied this... a course in "doing good" put
together by a masters level scholar, prior to which I had heard a
miss-mash of definitions of doing significant good. See, this was one of
the false premises dealt with. You see friend, MOST people don't
understand the NECESSITY of activism nor the MEANS to do significant
good in the world, and that would now seem to include you. lol. We can't
sit on a cloud and hope godness "rains down".

I'm sure YOU are a fine person and a just man, But.... um... NO. If you
help a friend, you have not brought good into the world really, you've
just made a deposit into your own security bank.

Read 'Strength to Love'/ Dr. King Then check out '7 Habits of Highly
Successful People'/ Dr. Covey- They are major respectable authors who
contend that simply helping those who are in position to help you back
is essentially paving your own security, and I agree with them.
Buscaglia would disagree with my premise that random smiles don't do
much at this juncture but he would then conceed he's more a poet than a
prophet.

You then continue:

" If you have kids, and you do a good job of raising them with strong
values and to be healthy people, then you have done something good for
the world."

Sounds good from the curb. But...who can disagree that a suicide bomber
has "strong" values?

And if what you mean by healthy
is "mentally healthy"... then answer this.. what if your "health" is
teaching them to simply grin at local countergirls, speak to the next
door neighbor and basically blend in with an unhealthy societal order?

Friend, we do not yet exist in a sustainable nor altruistic culture.
Thus, if you we are not conciously children as raising active solutions
to problems, we are raising continuations to problems. A soaring divorce
rate, drop out rate, cancer rate and mental illness rate in this country
are all indicative of the fact that there can be no more "business as
usual". Is the roof really falling down? Depends on what you call the
roof. If it's resources, family, health, education and prosperity, then
yes.

We each have a part to play.
Even if you only run a lemonade stand, you could use fructose and
perhaps print cups with a reminder to drink more water and natural
fluids and live longer.
IMHO it is irresponsible not to apply "Social Entreprenership" (S.E. is
a hybrid between the for profit and the "altruistic" mission
consideration aspect of the N.P.O.) to any venture at this stage in our
society. Some will say "I'm a businessman not a martyr".

True. But it won't kill you to do some good. Your customers will
probably appreciate you, and your stock holders will get on board with
the right public relations innitiatives.

And this rediculous fear of financial martyrdom I say that the
foundation of your business depends on the substrates of ecological,
economic and political fidelity of our country, which now rests upon the
ecological, economic and political fidelity of the world in turn. Thus
without advocation of causes which support these factors, no continuous
security can be realized - a crisis in healthcare or any area will
impact us all. Therefore one cannot rationalize failure to apply social
entreprenership to any venture at this stage in our society without
succumbing to the height of one of the aformentioned 5 Motivators: EASE.

Can one experience altruism or growth/ collective growth & improvement
without some degree of inconvienience? I don't see how. Such is the
nature of progress in any worthy endeavor. So much for a smile changing
the world, though it makes a great song.

You continue:

"If you avoid the temptation to buy an SUV, and instead buy a gas
efficient vehicle that consumes less oil -- which is the lifeblood of
middle eastern dictators and terrorists and is bad for the air -- then
you have done a good thing for the world."

Perhaps... but these things causes thus they will not self-fulfill
without advocacy (unless you are wanting the advocacy chore to be in
'somebody elses backyard')?

Actually this PARTICULAR example saves money. A MAJOR motivation, so
a questionable example of altruism (looking out for future generations
in this case).

By the way, it is the lifeblood of dictators in our own coutry - But I
won't go there.

"It does not take heroics, it just takes living your life slightly less
selfishly."

Would be true if your "less selfishly" included advocacy, not just
smiling, doing that which will immediately benefit you, etc.etc.

No way this would work with a dumbed down definition of goodness.
Because we by passed the inflection point where "personal peace" would
have worked very many decades ago (well over 100 years ago) we would
could get into a jam attempting to back your line with any respectable
sociological reference work.

The problems are at the systemic level (imbeded into academics,
corporatocracy, media, civil corporatocracy, etc.,) and full blown.
We're a day late and a dollar short for platonic fixes.

Laws of physics. It takes an equal AND opposite force to reverse a
force, so even INSTANTLY stopping where we are and creating a stagnant
(as hard as that would be) would not be a fix.
More smiling and buying smaller cars slows us a wee-bit, but advocating
as much secures our current path.

Mass X Velocity = Force. Meaning the
problem has full momentum, so simply having a "coke and a smile" is not
a fix at all, but PART OF THE PROBLEM. Thus, social scientists are
considering somewhat radical solutions at this point (stemming into
legalities etc.).

You continue:

"Making a living and being a kind and good person are not mutually
exclusive endeavors."

Agreed. But those sweet sensous words pack a hidden danger. They become
hollow and nebulous, like "I'd just like to buy the world a coke".

~zion~


PS

About all this seeming sad, I still would say it's a beautiful world -
and I'm sticking to it.
But I stop short of not mentioning the elephant in the livingroom.

And, about sadness - we don't have time to be sad... to much work to do.
"We fix our game face. We get up from the shock and get back out there
- and we do what must now be done."
PSS
Please overlook any rushed points. I took crunch time away from
important tasks to do this.. but I felt it was especially important to
weight in on this issue.