How To Get Into Magruder’s
Yes, the renowned Ernest Hemingway, the American writer who authored “The Sun Also Rises” and “Old man and the Sea”, once said that “wine is one of the civilized things in the world and one of the most natural things in the world that has been brought to the greatest perfection, and it offers a greater range of enjoyment and appreciation than, possibly any other purely sensory thing”. I had to put this quote just to show you how important good wine was to even an ‘intellectual like Hemingway. Wine is one thing that defies the logic of class and age. The higher up the social ladder you climb, the more wine you are likely to get, the older wine gets the better it begins to taste, alcohol is considered to be mainly a manly thing but wine is thought as a romantic gesture and highly welcomed by women. Wine is a friend to all. As Napoleon Bonaparte puts it: “In victory, you deserve Champagne. In defeat you need it”
It was for this very reason, the fact that wine is a friend to the community, that the people of Washington DC must have felt downcast when the announcement they dreaded hit them: Magruder’s was selling its stores and closing. Magruder’sis a grocery store and former wine chain in and around the Washington D.C metropolitan area. Magruder’s was founded in 1875: a hundred and forty-four years ago (144). The store is owned by a family who themselves were born and grew up in the Washington area. The Magruder’s s has been co-owned by two local families since 1967, when Louis H. Far-off and brother-in-law Stanford Steppe bought two small groceries. By the time Fanaroff died in 2005, there were 10 stores. But in the past decade, the store has been forced by the increasing competition. According to Bob Gorland, a New Jersey-based grocery store consulting firm Matthew P. Casey and Associates, said Magruder’s hasn’t kept up with the times. “They’ve been struggling for years, and many of the stores have had declining sales bases basically because of extensive competition,” he said.
Luckily for fans of Magruder’s the brand in itself is not entirely dead. In January 2013 Magruder’s sold its Connecticut Avenue, DC store (which will continue to operate under the Magruder’s name) and began liquidation sales at its other four stores. Graciously enough, the Connecticut Ave store is still serving till date and seems to have adjusted its services to fit into the demands of the 21stcentury. Just recently, June 14thto be precise, the store reported to have sold out on their Japanese whiskey. It appears they still maintained their customer base and probably even expanding it.
If you are a medium size producer or distributor of wine and other similar drinks, and in need a medium sized store to supply them Magruder’s is your place. Feel free to contact them via a mail to firstname.lastname@example.org. Or put across a call to (202) 686-5271. Enjoy!
How to get your product into Magruder’s
- 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 Magruder’s 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.
Sometimes easier said than done, however you must get on Magruder’s radar.
Call the Magruder’s corporate phone number and ask for the names of the buyer and assistant buyers in your category.
Always leave voicemail with whomever the dispatch will connect you.
Use that information to connect with them on LinkedIn, RangeMe and any other professional social platform.
Ask your representative at your trade bureau to connect you to the Magruder’s buyers as they will potentially have a better history.
Use advertising, public relations and marketing to make your brand known to Magruder’s buyer through 3rd party websites & industry media sources.
Be everywhere that they look, the key is to position your brand as the obvious choice when Magruder’s is looking to either refill a slot or create a new category.
Latch on to the news of the day and any trend that will make your product fill that niche whether that be Non-GMO or Vegan Leather for example.
Investing in your brand can only benefit your opportunities in the future. As being “top of mind” will have a ripple effect when you physically present your product at a Magruder’s buyers meeting or trade show in the future.
Magruder’s buyers typically got to their position by picking “winners” and know how to see through the fluff.
Focus on the numbers, know your bottom dollar during a negotiation and how fees and chargebacks may cut into your position.
Know that long term success may outweigh short term sales, however financing large purchase orders from Magruder’s when the net result is negative is not sustainable.
Understand the playing field and the other brands that are in your space, what they are offering as promotion and pricing and how you can stand out against them.
By knowing that each buyer at Magruder’s probably knows more than you do, take an active listening approach to sales and understand that no is a perfectly acceptable answer that may have saved you millions of dollars on the backend.
How to Submit a Product to Magruder’s
There are several ways to get a product placed in Magruder’s. 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 Magruder’s, 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 Magruder’s.
1. Start with the right questions.) Before you try distributing your product to Magruder’s, 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 Magruder’s would be interested in selling your product? If you can strike a deal with Magruder’s, can you handle the production volume? Do you want to sell directly to Magruder’s, 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 Magruder’s? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check Magruder’s 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 Magruder’s 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 Magruder’s is the right store for your product.) The relationship between you and Magruder’s starts with you browsing their store for competing products. If Magruder’s already has a similar product, it is going to be very difficult to get your product picked up. Spend some time at your local Magruder’s 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 Magruder’s.
If your company is minority or women owned, check Magruder’s website and see if they offer specific opportunities for those designations.
4. Pitch your product to Magruder’s.) Decide whether it will be you or a representative to present your product to Magruder’s. 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 Magruder’s, 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 Magruder’s. The percentage of commission verses, however generally a broker will take around 5% to represent your product to Magruder’s.
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 Magruder’s 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 Magruder’s paperwork.) Often Magruder’s will have you go through an application process. However, before submitting the paperwork required by Magruder’s, you should contact a buyer at Magruder’s 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 Magruder’s 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, Magruder’s 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 Magruder’s, 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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