Distribute Your Product to Convenience Stores
By Don Debelak

Article also includes:

-Description of various organizations typically found in an inventor’s distribution channel.

-Explanation of how to find a distribution channel for your product.

Many inventors have small novelty products where they want their products sold to convenience stores. This has been a difficult market for inventors because the distributors are typically rack jobbers who actually own the merchandise and buy at 40 to 45 percent of retail. The distributors can be hard to find as they don’t have a Standard Industrial Classification (SIC) dedicated to them, and most operate on the office supplies distributor SIC code.

Recently on a project though, I can across a great source, Mr. Checkout. According to the website description “Mr. Checkout is a national organization of (DSD) Direct Store Delivery Wagon-Jobbers, Distributors, Retail Merchandisers and Wholesale-to-Distributor Warehouses servicing Convenience and Grocery Stores in the US since 1989. Our DSD / Full-Service Merchandising Distributor Members call on c-stores weekly.” The site has a large of services including a Walgreens merchandising program and a product placement blitz service. Everyone should check this site out if you have a product for drug stores, convenience stores or grocery stores. I can’t vouch for the association but I did find the site had a great deal of helpful information.

Over the years I have found that inventors are unfamiliar with distribution, which is the channel that a product follows to take to market. Often products are handled by your own direct sales efforts, reps (also called manufacturers’ sales agents), brokers, specialty distributors, wholesale distributors, other manufactures with complementary lines, and rack jobbers all who may play a role in selling a product. The path your product follows to market is called a distribution channel. For example you may sell a product through a rep to a rack jobber distributor who sells to convenience stores who then sells to the consumer.

Description of terms often used when discussing in the distribution channel:

Direct sales: Indicates that sales are handled by the selling company’s own sales force.

Reps (manufacturers’ sales agents): Independent contractors that promote a Company’s line, but have very limited authority to commit a company to any but its standard sales terms. In effect a salesperson that represents a variety of companies with non competing product lines. They typically call on a specific industry, and carry product lines where the sales volume isn’t large enough to justify a direct salesperson. Reps don’t take title on a product and work commonly on a 5 percent to 20 percent commission.

Brokers: Brokers are similar in some respects to a rep, they are independent from the companies they serve and receive a commission but they are more oriented towards the buyer than the seller. A rep will not carry competing lines and will have a wide range of products. A broker has a narrow range of products and many of them compete. An insurance broker, for example, carries lines of insurance from many companies, and will chose the company that is best for his customer. An insurance agent carries only one company’s products, and tries to steer everyone to buy those products. A clock broker, for example, might have three stores as customers, and have access to many lines of clocks. He would then offer clock lines to his customers so they would have a constantly changing variety of clocks. Reps are far more common than brokers.

Private label: This is a practice where a company makes a product that it sells to another company that markets the product under their brand name. For example, a toy company might make a toy that is sold under the Toys R Us label. Or it might make a toy that is sold to Play School and then Play School would sell it under its label. Private labels sellers own the rights to the product and develop and produce the product to their specifications. Toys R Us might also create a develop toys that they have produced by a manufacturer. That manufacturer would be a contract manufacturer, rather than a private label manufacturer, because it didn’t create the product and it doesn’t own rights to the product.

Specialty retail distributors: Distributors serving small markets, for example baby stores or bike shops. These distributors take title to the product and promote the product and typically carry many products from one product inventor oriented companies. They are a key component in most inventor companies’ distribution plans. They typical mark up (raise their price by) is 35 to 40 percent before selling to retailers.

Industrial distributors: These companies typically sell directly to industrial companies, versus selling to a retail store. Graingers and Fastenall are examples of industrial distributors that sell a wide range of products to companies. You also have specialized industrial distributors. Some examples would be a pump and compressor distributors, a distributor that sell products for high temperature furnaces, or a company that supplies safety equipment. These companies typically have a high level of technical support to help chose the right products and then get the products to work effectively for them.

Trade distributors: These are distributors that deal with tradesmen versus industrial or consumer oriented accounts. Plumbing distributors, wood products distributors that sell to contractors, auto parts distributors that serve car repair shops are just a few of the types of distributors that sell to various trades.

Wholesalers: Wholesalers are also a distribution point between manufactures and their customers. While distributors provide promotion and service, wholesalers typically don’t. They also rarely carry products from inventors as they purchase very large stocks of products and serve markets like grocery stores. Like distributors they take ownership of the product, but typically only mark the product up 15 to 20 percent.

Rack jobbers: Rack jobbers are a specialty type of distribution. Most distributors take title to the product and then sell it to a store or industrial company that takes title. Rack jobbers instead rent portions of a store, which might just be a section of a rack, or endcap positions at the end of the store aisles by the cash registers. Durable hair care products (brushes, combs and other product related hair care products) at drug stores are a typical rack jobber item. The rack jobber owns the merchandise in the store, replaces it and is only paid for the merchandise when it is sold by the store. Typically rack jobbers raise their purchase price 50 to 75 percent and then the stores mark the product up an additional 50 percent.

Selling through other manufacturers: One of the reasons companies use reps is that they don’t have enough sales volume on their own to justify a direct salesperson. Those companies are often willing to pickup a line from another company if it puts them in a position to have their own direct sales force.

How to find agents and distributors.

Step 1: Start by looking for trade associations, trade magazines and trade shows. You can find associations and trade magazines with Google searches if you are lucky, or by going to one of your larger libraries, where you can look for The Encyclopedia of Associations by Gale Research, and also Gale Research’s Directory of Magazines and Broadcast Media. Both of these directories have a wide range of groups for even thee smallest trade associations and trade magazines.

Once you find a list of associations and trade magazines you should go to their site and look for a list of manufacturers’ representatives or distributors. For example I went to look for products for the baby industry in Gale’s Encyclopedia of Associations. I found the association Juvenile Products Manufacturers Association. When I went to the web site, jpma.org, I found they had a list of manufacturers sales agents. Often the web sites will also have a list of distributors, similar to the Mr. Checkout web site.

Step 2: Develop a list of manufacturers in the industry. You can find lists of manufacturers in the trade association and the trade magazines web sites. Trade magazines will also have a list of trade shows. If you go to the web sites for those trade shows you can usually get a list of exhibitors. You can make the list more complete by using your library again. Most bigger libraries have a service called Reference USA in their online services. You can also use the service at home once you have the library password. Go to the site http://www.referenceusa.com before going to the library to see what information you will need. Then look up the SIC codes for a few companies on the site. SIC stands for Standard Industrial Codes, and typically most companies in the industry will have the same code. Once you have the SIC Codes you can do a search based on SIC codes and get a list of many of the companies in the industry.

Step 3: Go the web sites of companies in the industries. Some of the companies will list distributors, and others will list manufactures representatives. Other companies will be looking for representatives or distributors. Often it pays off to call those companies and see if they would like to partner with you in marketing your products. This is a tactic to consider because often manufacturers reps and distributors don’t want to carry a line that is too small. You and your partner company might have enough volume together to entice distributors or manufacturing reps to carry your product.

You can also find representatives at the manaonline.org, which is the site of the manufacturers’ agents’ national association web site.

Success Tip

If you are a minority or women-owned business you might want to check out the site http://supplierregistration.target.com/Supplier/supplier_registration.aspx to get idea of the information you need to know to become a supplier for a leading store.

Don Debelak is a well-known invention expert who has worked with new products and inventions for over 25 years and is the author of four of the best-known invention books of the last 15 years. Don runs the One Stop Invention Shop, http://onestopinventionshop.net, with a team of expert associates. The One Stop Invention Shop provides great service along with lots of free information to help inventors.

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I spent twenty plus years building a Halloween business that was highly successful. You can make substantial money in your first year of business, but with profit comes high risk and extensive hard work.  I find many companies and individuals choose not to take that route and instead elect to take a franchise. The franchise concept does not lead to the amount of profit you deserve for all the work that is required. I can help create a successful Halloween business for you and teach all that is needed.  The magic is knowing the market, obtaining the right application of product, product mix, advertising, location, fixtures, display, inventory control, budget, insurance, accounting, leases, labor, employment agreements, training and the ability to be in the right place at the right time with the merchandise that the public desires.  It is imperative to understand the market trends. You can minimize your risk factors with my expertise  I sold my business for a substantial profit and now that I am semi-retired I would like to share the wealth of knowledge and information that I accumulated.  If you would like to chat, please feel free to contact me at BruceZalmanesq@aol.com

About Bruce:

BRUCE P. ZALMAN 1330 PARKSIDE CIRCLE SOUTH BOCA RATON, FLORIDA 33486 PHONE:  561.394.2900  FAX: 561.391.8781 E-MAIL

OBJECTIVE:  To create and develop realistic solutions for problematic companies that will develop profitable results.

EDUCATION: 1966-1972 UNIVERSITY OF LOUSIVILLE, LOUISVILLE, KENTUCKY Juris Doctor: University of Louisville, SCHOOL OF LAW, May, l972 Bachelor of Science Commerce: Marketing & Accounting Majors

PROFESSIONAL EXPERIENCE: 2010 to Present LEGAL AND BUSINESS CONSULTANT • Temporary assignments for various corporations and law firms • Client list includes: Angioscreen, Datamed, Ostrega Law Firm, Tyco, Cuda Boat Works and various private clients which will provide references on request

1992 to 2010 KING RICHARD’S HALLOWEEN INC., BOCA RATON, FLORIDA Chief Executive Officer • Responsible for nationwide marketing and global distribution • Established new points of sales and products in various markets • Engineered the creative and publicity aspects of official Internet Website • Negotiated and drafted all contracts including major leases • Created and developed a start up company into a multi million dollar Operation • Attended major trade shows and negotiated new product lines Prepared training manuals for sales personnel and managers • Negotiated purchases with all major vendors

1987 to 1992 SEARS TUXEDO, BOCA RATON, FLORIDA Chief Executive Officer • Negotiated and obtained rights from Sears to operate tuxedo concession stores • Developed product lines • Established tuxedo retail and rental business within Sears for Florida, Georgia, South Carolina • Created and developed various promotions and advertising programs • Developed inventory controls • Established and wrote training manuals for all sales personnel and managers • Negotiated purchases with all major vendors • Developed eighteen profitable concession outlets

1978 to 1986 LOU MARKS AND SON, LOUISVILLE, KENTUCKY Director of Legal and Administration • Established new methods of distribution and sales through general contractors nationwide • Focused on publicity aspects of merchandising product • Handled all legal matters including Human Resources

1972 to 1978 NATIONAL INDUSTRIES, INC., LOUISVILLE, KENTUCKY Corporate Counsel for Fortune 500 Company • Handled all legal matters for corporation, including contract negotiation, contract drafting, SEC documents, license and franchise, copyright and trademarks, and all aspects of Human Resources and real estate. • Supervised all outside counsel and litigation. • Responsible for all acquisitions and divestitures.

COMMUNITY ACTIVITIES: 1996 to 2000 Children’s Museum of Boca Raton • Member of Board of Directors. • Promote cultural and educational programs for children in Palm Beach County.

Ft. Lauderdale/Miami Film Festivals • Assist in generating publicity for film festivals, with special interest in supporting the University of Miami’s Cane Film Festival.

HONORS RECEIVED: • Outstanding Senior Award- School of Law • American Marketing Association Award • Salutatorian Award – School of Business • Phi Kappa Phi Scholastic Honorary • President, Omicron Delta Kappa, Men’s National Honor Society

ADDITIONAL  INFORMATION: • Business law instructor, University of Louisville, 1973-1984 • Hearing officer State Board of Claims, Kentucky, 1978-1980 • Probate and Trial Commissioner, Jefferson County, KY 1973-1976 • Practiced before the following courts: Kentucky Circuit Court, Court of Appeals and Supreme Court Federal District Court Eastern District of Kentucky United States Court of Appeals, Sixth District United States Board of Claims Supreme Court of the United States

Metropolitan Statistical Areas

Metropolitan Statistical Area (MSA) is a geographical region with a relatively high population density at its core and close economic ties throughout the area.   A typical metropolitan area is centered around a single large city that wields substantial influence over the region. However, some metropolitan areas contain more than one large city with no single municipality holding a substantially dominant position.

]]> http://mrcheckout.net/top-366-metropolitan-statistical-areas/feed/ 0 http://mrcheckout.net/about-mr-checkout-distributors/ http://mrcheckout.net/about-mr-checkout-distributors/#comments Fri, 09 Mar 2012 01:13:03 +0000 admin http://mrcheckout.net/?p=3606 About Mr. Checkout

We are a unique organization of direct store delivery distributors, wholesalers and merchandisers that provide full-service to independent food stores, groceries, convenience stores, and super drug & value stores in the US since 1989.

Ø  280+ DSD Route Members covering most major cities and rural routes in 40+ states.  Our distributors / jobbers service over 25,000 retail store locations and will share their success with you in promoting your product!

Ø  12 Wholesale-to-Distributor Warehouse associated companies that service inner-city groceries and ship mixed pallets of merchandise to jobbers nationwide.  Our wholesalers look to us to recommend product based on the success of our in-store marketing programs.

Ø  2,000+ Merchandisers that call on major food and drug retailers.  Ask how we can assist you in launching your product into Walgreens.

Ø  Value Channel Retailers:  We have an excellent relationship with one of the largest discounters in the US.  Once a product has shown success with our jobbers, we will present it to the buyers.

The Mr. Checkout Management Team collectively has over 60 years of experience in the convenience store and grocery industry including DSD route sales, product development, product branding, marketing and promotions, broker / mfg. representation, etc. We have successfully helped launch major brands such as 5-Hr Energy, Stacker 2 Energy, and ExtenZe as well as many other products that have gained traction with our independent distributor network and can now be found in national distribution channels including master wholesalers, and national convenience store chains.

In-Store Marketing Blitz:

Your product displays delivered and merchandised at or near the checkout counter in independent groceries & convenience stores nationwide by our network of Mr. Checkout Direct Store Delivery Distributors. Gain regional and national exposure and sales with your product on the checkout counter in 1000’s of c-stores in your target markets.

1.You provide product displays (samples) and point of sale items for our distributors to display and promote in their best high traffic c-stores. Our management team will assist and / or provide recommendations and insight in regards to effective in-store POS marketing pieces, price points/margins, target market demographics,etc. to ensure a successful blitz launch

2.Our distributors will present your product to the store owner / manager and place your product display on the checkout counter. You receive complete store info and a digital photo of your product in-store in an Excel Report for a one time low cost per retail store location.

3.Our distributors service their accounts bi-weekly and will report sales movement and provide feedback on    the performance of your product. With sales success at the c-store retail level, our blitz distributors will continue ordering directly from you to service their accounts.

The Mr. Checkout Management Team will assist you in converting your marketing dollars into on-going sales and profits after the Blitz Campaign.

Mr. Checkout Supplier Membership – Marketing & Promotion Options

• Advertise Direct to our Distributor Network – Mr. Checkout What’s Hot eZine      features Hot New C-Store products in an email blast that goes out every      week to over 6,000+ jobbers, distributors, DSD wholesalers, and buyers in      the convenience store industry.
• Distributor Database – Excel formatted list featuring over 900 independent      and national c-store distributors and wholesalers.
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• Mr. Checkout Landing Page – Your product featured on your      own Mr. Checkout Landing Page – Promote your product with key      selling points, images, and blitz placement photos.

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Nov 21, 2011  News

Contact

MyPlay2Win™ 140 E. Ridgewood Ave. Paramus, NJ 07652

P: 866-560-5500

Another service we have available, is purchase order financing which allows a manufacturer to be paid right away and avoid the waiting game on their receivables. Finally, and where I fit in- is regarding marketing and branding. If you have someone with a product that has distribution, yet lacks sales- chances are good that the marketing is bad. We can help with that in most cases.

We remain focused on the product side, as sourcing new products has proven to be the best starting point for our ancillary services.

Contact: Kenny Annunziato kennyannunziato@gmail.com This or That, Sales and Marketing
244 Center Dr. Mahopac NY 10541