How to Get Product into HomeBase
Founded in 1979, HomeBase is a British home improvement retailer and garden centre with stores across the United Kingdom and Republic of Ireland. The company was owned by Home Retail Group from October 2006, until it was sold to the Australian conglomerate Wesfarmers in February 2016. Wesfarmers’ management ended in financial disaster, and in 2018, the company was sold to Hilco Capital for £1.
HomeBase operates over 170 stores in the United Kingdom, as of December 2018. In Ireland, the company has a further 11. In July 2013, an interim examiner was appointed by the High Court. HomeBase stated the purpose of the examinership was to place the company back on a “sustainable footing”.
The company moved its headquarters within Milton Keynes in December 2016, from premises previously shared with former sister company Argos.
Early in its history, HomeBase used its Sainsbury’s experience to move into using central warehouses from which to deliver its stock. By the 1990s, it was receiving the vast majority of its stock into central warehouses, and then delivering it to stores. HomeBase still receives a few direct deliveries to its stores, from manufacturers and vendors.
This company has gone through several ownerships and acquisitions. However, unlike a lot of companies who didn’t survive into the 21stcentury, this company has been able to make it through despite having to shake off debts and a lot of liabilities.
It is of no doubt that the home décor industry is huge. In the United States alone, it is a multibillion dollar industry. The worth of the global market is huge. Furniture, textiles and floor covering products are key components of home decor. Expansion and developments in real estate industry, have supplemented the growth of world home decor market. Globalization facilitates easier and wider availability of home decor products and designs for consumers. Moreover, growing consumer preference towards adoption and usage of eco-friendly products, known for their minimal impact on the environment, has also boosted the growth of the market.
It is no longer news that consumers prefer online retail platforms for buying furniture, owing to availability of a wide array of home decor products at discounted/affordable price. Increasing cost of raw materials, such as leather and superior quality wood, is limiting the market growth. Improving lifestyle and increasing disposable income of individuals would offer several growth opportunities to the players operating in the market. HomeBase understands this and operates as an online retailer.
As a big player with quite a history in this industry, it is expected that the retailer has caught on with cutting edge research to look for ways of producing home décor products cheaper and sustainably. The trend is now sustainability and affordability. This trend is in line with the global economy and the need for conservation.
Submit Your Product to Homebase Foods
Skip the cold outreach. Mr. Checkout presents products to corporate chain buyers and also works a network of thousands of independent retailers that build real reorder proof. Tell us about your product below and a real person will read it.
How to get your product into HomeBase
- Understand you client: Before you spend a lot of time and money creating a product, you should know if anyone will want to buy it. Learn more about Market Research
- Learn if it’s protectable: Know if you can defend your product against cheap copies if it gets knocked off. Learn more about Copyright and Patent your product
- Test your product: Make sure that there’s a demand for your product and the customer understands what you are selling when it’s on the shelf and nobody is there to explain it. Learn more about Product Testing
- Perfect your pitch: Before you speak to decision makers, know your numbers, know your retailer and know your logistics in and out. Learn more about Pitching Your Product
- Don’t do it alone: If you haven’t been successful in retail before, a secret of success is that you can’t do it alone. Having great sales staff, customer support and marketing partners can take you from zero to success faster than if you tried on your own. Learn more about Retail Partnerships
Contact HomeBase Buyer
Do not trust any “list” of buyers.
Typically retail buyers change either companies or positions every few years. This strategy helps retailers know that their buyers are not taking “kick-backs” and are selecting the very best product for the very best position each time.
Buyers are typically held to a very rigorous standard of sell-through volume that they must hit and because of this they are risk averse. Your job as a supplier or vendor is to convince them that the buyers going into the stores not only know about what you’re selling but are actively seeking the product in the store currently.
How to Submit a Product to HomeBase
There are several ways to get a product placed in HomeBase. However, most entrepreneurs only dream about getting their product distributed to major retailers, few actually do it. We have experienced a significant rise in interest since the show Shark Tank started airing on NBC. Mr. Checkout has had the pleasure of working with a few Shark Tank success stories such as KISStixx and 180 Party Cups which are now currently being distributed around the country to stores like Walmart, Target, Kroger, 7-Eleven and more.
If you envision your product would be a good fit for HomeBase, we have a few steps to help you get your product on their shelves.
Here are the 6 steps you need to take to have your product placed in HomeBase.
1. Start with the right questions.) Before you try distributing your product to HomeBase, you need to ask yourself a few basic questions. Do you need to build demand for your product, or is there already a demand for it? Do you know that HomeBase would be interested in selling your product? If you can strike a deal with HomeBase, can you handle the production volume? Do you want to sell directly to HomeBase, or do you want to license your product to a manufacturer that will handle distribution?
2. Be prepared to profit.) Does your product offer enough of a profit margin for HomeBase? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check HomeBase guidelines for other fees that you will have to build into the cost of your product in order for you to be able to turn enough of a profit to make the effort worth your while. If you work with a discount retailer, they will try to strip your profits down to zero in order to keep their prices as low as possible.
The typical breakdown of margins are: If a products costs $1 to produce, that product will retail for $4. That product that retails for $4 will wholesale for $2 to distributors and stores that purchase direct. Big box retailers like HomeBase may offer to pay $1.25 to the manufacturer if the product costs $1 to produce. That is the typical profit margin.
3. Determine if HomeBase is the right store for your product.) The relationship between you and HomeBase starts with you browsing their store for competing products. If HomeBase already has a similar product, it is going to be very difficult to get your product picked up. Spend some time at your local HomeBase to see what kind of products they are selling, speak to the manager and see if he thinks your product will sell well in their store. Picture in which zone your product would best fit on the shelf and keep in mind that the most precious asset that these big box stores value are their shelf space. Keep this information in mind when you are preparing your presentation to HomeBase.
If your company is minority or women owned, check HomeBase and see if they offer specific opportunities for those designations.
4. Pitch your product to HomeBase) Decide whether it will be you or a representative to present your product to HomeBase. Your presentation depends heavily on your strengths as a businessperson as they will most likely ask financial questions and logistics questions.
It’s common for companies to hire a broker to pitch their product to HomeBase, as it will be more likely that your product will make it to the next stage if the individual pitching your product has industry knowledge or a personal relationship with HomeBase. The percentage of commission verses, however generally a broker will take around 5% to represent your product to HomeBase.
We at Mr. Checkout have experience dealing with brokers and know that there are several retail brokers that have poor business practices that can potentially damage your brand. If you are seeking a legitimate HomeBase broker, please give us a call for a recommendation. It could save you a huge headache and a lot of money.
5. Complete the required HomeBase paperwork.) Often HomeBase will have you go through an application process. However, before submitting the paperwork required by HomeBase, you should contact a buyer at HomeBase and let them know your intentions. Having a contact inside of the company will potentially move your application more smoothly through the process.
6. Anticipate the need for increased volume.) Having HomeBase agree to stock your product will most likely mean a significant increase in volume. You should be prepared to ramp up your production and informing your manufacturer of this opportunity.
Having production, logistics and distribution to sync is not only difficult, it requires a significant amount of time invested in customer relations. Also, HomeBase may have stipulations in the contract that may penalize you for delays in shipping and production. Have an attorney explain all contracts to you if you don’t understand the terms.
If you’re looking to sell your product to HomeBase, be sure to thoroughly assess the marketplace, carefully prepare for production growth, and take full advantage of resources available to help you grow your business.
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