How to Get Product into Shell
Shell Oil Company is the United States-based wholly owned subsidiary of Royal Dutch Shell, a multinational “oil major” of Anglo-Dutch origins, which is amongst the largest oil companies in the world. Approximately 22,000 Shell employees are based in the U.S. The U.S. headquarters are in Houston, Texas. Shell Oil Company, including its consolidated companies and its share in equity companies, is one of America’s largest oil and natural gas producers, natural gas marketers, gasoline marketers and petrochemical manufacturers.
Shell is the market leader through approximately 25,000 Shell-branded gas stations in the U.S. which also serve as Shell’s most visible public presence. At its gas stations Shell provides diesel fuel, gasoline and LPG. Shell Oil Company was a 50/50 partner with the Saudi Arabian government-owned oil company Saudi Aramco in Motiva Enterprises, a refining and marketing joint venture which owns and operates three oil refineries on the Gulf Coast of the United States. However, Shell is currently divesting its interest in Motiva.
A Shell gas station near Lost Hills, California
Shell products include oils, fuels, and car services as well as exploration, production, and refining of petroleum products. The Shell Oil Refinery in Martinez, California, the first Shell refinery in the United States, supplies Shell and Texaco stations in the West and Midwest.
Company Perspectives
Shell Oil follows the Royal Dutch/Shell Group’s “Blueprint for Success” and strives to be passionate in taking care of customers; to become the model of diversity for corporate America; to be an organization where people can achieve their full potential; to achieve the leading-edge in financial performance, health, safety, and environmental performance; and strives to have a strong national profile and identity.
Contact Mr. Checkout Distributors
At any time, there are hundreds of brands who are knocking on a retail buyers door in an attempt to get on their shelves. If you’re a small company or still trying to make a name for yourself in the industry, it’s best to contact Mr. Checkout Distributors who already have strong relationships with big box retailers around the country.
Mr. Checkout Distributors are always on the lookout for new products that have good margins and are ready for retail. When you put your trust in the experts, you have more time to focus on your business instead of worrying about fine tuning a last minute sales pitch to buyers.
How to get your product into Shell
- 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 Shell 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 Shell
There are several ways to get a product placed in Shell. 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 Shell, 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 Shell.
1. Start with the right questions.) Before you try distributing your product to Shell, 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 Shell would be interested in selling your product? If you can strike a deal with Shell, can you handle the production volume? Do you want to sell directly to Shell, 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 Shell? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check Shell 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 Shell 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 Shell is the right store for your product.) The relationship between you and Shell starts with you browsing their store for competing products. If Shell already has a similar product, it is going to be very difficult to get your product picked up. Spend some time at your local Shell 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 Shell.
If your company is minority or women owned, check Shell website and see if they offer specific opportunities for those designations.
4. Pitch your product to Shell.) Decide whether it will be you or a representative to present your product to Shell. 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 Shell, 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 Shell. The percentage of commission verses, however generally a broker will take around 5% to represent your product to Shell.
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 Shell 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 Shell paperwork.) Often Shell will have you go through an application process. However, before submitting the paperwork required by Shell, you should contact a buyer at Shell 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 Shell 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, Shell 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 Shell, 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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