distribution
Distribution

DO YOU HAVE A PRODUCT WE SHOULD KNOW ABOUT?

Mr. Checkout is a national association of independent wagon-jobbers and full-line distributors. We distribute product to approximately 35,000 independent stores around the country and are always seeking the next hot new product. If you have a product, we want to hear from you!

Party Store Distributors

Distributing to Party Store Distributors is all about satisfying the store’s needs in what type of products their customers demand. Party Store Distributors want a product that has been established and will sell quickly. Contacting local Party Store Distributors is a good first step to get a feel for what products do well in that market.

Finding a distributor who already has an established relationship with independent specialty retailers is essential. The distributor and retailer relationship is important in product placement in Party Store Distributors. If a distributor has a good reputation with an independent specialty retailer the process of getting products into the store is a lot smoother.

Building a relationship and a positive track record is a very important part for the distributor. It is important for the distributor to do some research on what kind of specialty products do well in each specialty store, which can be dependent on where they are located. If a product does well in one independent specialty store the likeliness the distributor will put it in other stores is high. In Party Store Distributors and independent stores in general it is all about shelf space and what sells well will claim that shelf space. Products that do not, will be given less space or no space in order to move in a new product that sells well.

Party Store Distributors look for products that are innovative and will set them apart from competitors. So, new products have a better chance of making it into an independent specialty store  vs. a big box retailer. An independent specialty store will have a stronger personal relationship and knowledge with products compared to big box stores as well. This is beneficial to everyone involved because having knowledge about the product in stores will improve sales.

In order to get a product into an independent specialty market contacting the correct distributor is the first step. The next step would be sending samples and other pertinent information to that distributor if requested. They like to see proof of sales and selling points of that product. Communicating about price points and minimum order quantities is very important. If the distributor likes the product and thinks it would be a good fit for their route they will purchase the product.

If the product does well in stores, the distributor will continually order more. Proof of sales will bring more orders and getting in contact with other distributors in other parts of the country is the next step. A product with proven sales in a few Party Store Distributors will make its way to Party Store Distributors all across the nation through different distribution channels. Establishing and building relationships with distributors is the best way to get products into Party Store Distributors.

Here are the 6 steps you need to take to have your product picked up by a distributor.

1. Start with the right questions.) Before you try distributing your product, 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 the distributor would be interested in selling your product? If you can strike a deal with them, can you handle the production volume? Do you want to sell directly to the distributor, 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 a distributor? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check the distributor’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 Walmart 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 the distributor is the right one for your product.) The relationship between you and the distributor starts with you browsing the store’s that they service for competing products. If the stores already has a similar product, it is going to be very difficult to get your product picked up. 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 the distributor.

4. Pitch your product.) Decide whether it will be you or a representative to present your product to the distributor. 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 a distributor, 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 them. The percentage of commission verses, however generally a broker will take around 5% to represent your product.

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 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 paperwork.) Often a distributor will have you go through an application process. However, before submitting the paperwork required, you should contact them 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 a distributor pick up your line 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, distributors 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 distribute your product through a distributor, 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.

Top 5 Wholesale Party Store Distributors

In the United States alone, the party supply industry alone accounts for more than $5 billion with an annual growth rate of about 4.3%. The expansive industry oversees the supply of party paraphernalia like holiday decorations (Christmas, Halloween), bridal showers, birthday parties, Halloween celebrations, and special events like Bar Mitzvahs.

These events are yearly. Thus, there is no scare about going out of business. The seasonal decorations industry accounts for a whopping $12 billion. By expanding your portfolio to accommodate party supplies, you are sure to increase your ROI exponentially.

There are some major Wholesale Party Store Distributors in the United States. These receive products from manufacturers or their suppliers and supply retailers. Here are the top 5 on the Wholesale Party Store Distributors list:

Chinabrands

Chinabrands have a wide range of wholesale party supplies and all of them are at wholesale prices. Several manufacturers get their products to Chinabrands who then sell at wholesale to retailers.

Though many complain about the quality of the products, steps have been taken by this distributor to address this. Chinabrands has invested a lot of money on the quality control system. Every products from Chinabrands needs to be inspected 3 times at least and differ from most of the manufacturers who randomly check the goods, Chinabrands is offering 100% products inspection to make sure every piece of wholesale party supplies meet the quality standard.

Alibaba/ AliExpress

Founded in 1999 and serving over 200 countries, Alibaba is one of the biggest platforms to get products in large quantities. Party supplies are in bulk supply and can be shipped to your address of choice.

AliExpress is an online retailer serving under the Alibaba Group. Alibaba uses this online retail platform to extend its worldwide presence, far beyond Asia. AliExpress mostly connects businesses with buyers. The company has grown to include affiliate marketing. Alibaba might be the best place for you to get cheap and quality party products supply.

DHgate

DHgate is an online platform for wholesale goods. They are gathering Chinese suppliers and worldwide customers on their platform to establish business relationship. There are over 30 million products in Dhgate including home decor, apparel & accessories, party tent, computers & networking, consumer electronics, toys & hobbies, health & beauty, bags & jewelry, home, auto, and more.

Wholesale Party Supplies

This is one of the leading companies to provide party items at wholesale price. They have unique and exciting themes for all types of events. They have over 500 different party themes out of which some are licensed by Disney, Marvel, Nickelodeon, Barbie, Star Wars, DC Comics, Universal and many more. They have a variety of categories on their website, which includes birthday accessories, holidays and occasions, invitations, thank you card, tableware, entertaining accessories, balloons, decorations, toys, candies, and favors.

Bulk Party Suppliers

One of the best party supplier company, Bulk Party Supplies has mastered the art of wholesale business since 2001. They have more than 7000 party supplies on their website to choose from at a very reasonable price. They have various categories on the site, which include award ribbons, baby showers, birthdays, general party supplies, graduation, holiday, sports, anniversaries, and weddings.

DO YOU HAVE A PRODUCT WE SHOULD KNOW ABOUT?

Mr. Checkout is a national association of independent wagon-jobbers and full-line distributors. We distribute product to approximately 35,000 independent stores around the country and are always seeking the next hot new product. If you have a product, we want to hear from you!