How to get your product into O’Reilly Automotive
- 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
How to get into O’Reilly Automotive
Founded in 1957, O’Reilly Auto Parts is an American auto parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States serving both the professional service providers and do-it-yourself customers.
O’Reilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The Company sells its products to both do-it-yourself (DIY) and professional service provider customers. The Company’s product line includes new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature control, chassis parts, driveline parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products, and accessories, such as floor mats, seat covers and truck accessories. The Company’s stores offer various services and programs to its customers, such as used oil, oil filter and battery recycling; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; custom hydraulic hoses, and machine shops.
The retailer has been one of those who have thrived in the hardware business for long. The hardware tool industry was with less competition back in the days. However, with the continuous application of modern scientific and technological achievements in the industry, the metal industry’s competition is becoming increasingly fierce. Hardware tools include all kinds of manual, electric, gas, cutting tools, steam security tools, agricultural tools, heavy tools, measuring tools, machine tools, cutting tools, fixtures, tools, dies, cutting tools, grinding, drilling, and polishing machine, tools, accessories, measuring and cutting tools, abrasives, etc.
There is internal and external competition for companies in the industry as there are American manufacturers of hardware tools and there are also cheap and readily available hardware products coming from factories in China. This makes the competition very tough.
As a private company with private investors, the company has been able to save itself from external pressures from shareholders and restrictions. The company has been able to sell its products at affordable prices because it manufactures them.
As of February 2019 O’Reilly Automotive, Inc. operates more than 5,200 stores in 47 states, including Alaska and Hawaii. The company continues to plan for growth and expansion, projecting the addition of 200 new locations in 2019.
On August 20, 2019, O’Reilly Auto announced it would be acquiring Mayasa Auto Parts. This marks O’Reilly Auto Parts first venture into international markets. Mayasa has 5 distribution centers, 20 company stores, and more than 2000 independent jobber locations throughout Mexico.
With quality auto products, this retailer has been able to establish itself in the market. Customers are looking for top quality at affordable prices. This is what this retailer brings to the table.
Contact O’Reilly Automotive 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 O’Reilly Automotive’s radar.
Call the O’Reilly Automotive’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 O’Reilly Automotive buyers as they will potentially have a better history.
Use advertising, public relations and marketing to make your brand known to O’Reilly Automotive’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 O’Reilly Automotive 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 O’Reilly Automotive buyers meeting or trade show in the future.
O’Reilly Automotive 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 O’Reilly Automotive 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 O’Reilly Automotive 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 O’Reilly Automotive
There are several ways to get a product placed in O’Reilly Automotive. 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 O’Reilly Automotive, 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 O’Reilly Automotive.
1. Start with the right questions.) Before you try distributing your product to O’Reilly Automotive, 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 O’Reilly Automotive would be interested in selling your product? If you can strike a deal with O’Reilly Automotive, can you handle the production volume? Do you want to sell directly to O’Reilly Automotive, 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 O’Reilly Automotive? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check O’Reilly Automotive’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 O’Reilly Automotive 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 O’Reilly Automotive is the right store for your product.) The relationship between you and O’Reilly Automotive starts with you browsing their store for competing products. If O’Reilly Automotive already has a similar product, it is going to be very difficult to get your product picked up. Spend some time at your local O’Reilly Automotive 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 O’Reilly Automotive.
If your company is minority or women owned, check O’Reilly Automotive’s website and see if they offer specific opportunities for those designations.
4. Pitch your product to O’Reilly Automotive.) Decide whether it will be you or a representative to present your product to O’Reilly Automotive. 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 O’Reilly Automotive, 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 O’Reilly Automotive. The percentage of commission verses, however generally a broker will take around 5% to represent your product to O’Reilly Automotive.
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 O’Reilly Automotive 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 O’Reilly Automotive paperwork.) Often O’Reilly Automotive will have you go through an application process. However, before submitting the paperwork required by O’Reilly Automotive, you should contact a buyer at O’Reilly Automotive 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 O’Reilly Automotive 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, O’Reilly Automotive 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 O’Reilly Automotive, 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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