Established 1989 | Mr. Checkout is a national group of distributors and independent retail associations. We focus on developing a path to market that builds on retail sales and our established relationships.
Sales representatives are critical to the growth of any business. Using a sales rep to get introduced to a buyer offers an opportunity to build on an existing relationship instead of forging a new one.
Costco suppliers fit into multiple categories, and together, they make up a pool of over 100,000 businesses worldwide. To learn how to submit your information to the right buyer click below to learn more.
Create new distributor and wholesale relationships with independent retailers across the U.S., Canada and the Caribbean.
Wholesalers
A wholesaler sells to independent store owners who purchase goods to sell individually in their own retail stores.
Distributors
A distributor is an entity that buys products or product lines at wholesale prices and sells them to retail stores.
Make sure your product has its certifications and is compliant
When you are selling your product off the shelf, it’s important for the customer to quickly understand that your line is in-line with their cultural and medical requirements. Having a third party vouch that they have seen how the product is made and where the ingredients come from is the reason why there are so many food certifications.
Food certifications go in and out of style. However, some are always going to be in demand. Certifications that reflect the purchaser’s religious views such as Kosher Certified and Halal Certified are going to be needed if you are going to market to that segment of the market.
The certifications that most often fall out of demand are usually attached to a specific fad diet that is making its rounds. Atkins and South Beach Diet are two that come to mind.
Click here to see The Food Certification List
Understanding the different ways that products can be rolled out in retail.
Retail merchandising refers to the way retailers, brands, and other product companies make their merchandise available in stores. Retail merchandising includes both execution and strategy. Product selection, product placement, display design, and other techniques also play a huge role in how you’re viewed in retail. The purpose of retail merchandising is to encourage purchases.
Successful retail merchandising requires careful planning, implementation, management, and analysis. Let’s take a look at the facets of a great retail merchandising strategy and some of the tools that help brands, consumer goods, and consumer packaged goods companies as well as retailers keep a steady course and an ocean of products in order throughout a merchandising expedition.
Knowing how your product will be distributed to the stores and merchandised on the shelves.
1. Direct: With direct distribution, the producer of a product directly sells to a consumer. It is often the simplest distribution method, with no intermediary between the product manufacturer and the consumer, though it can also be costly depending on your location, product, and ability to distribute your goods. Benefits of direct distribution include creating trust with the customer, controlling the consumer experience, and providing excellent customer service.
2. Indirect: Indirect distribution uses other channels besides the direct-to-consumer method. It can be helpful for manufacturers with limited lines of products or financing or when retailers and wholesalers specialize in certain goods and promotional support. Manufacturers can involve one more indirect channel to create a larger distribution network to reach more customers. Indirect distribution can have a variety of paths.
3. Exclusive: Exclusive distribution is the approach of using limited sales outlets only available in specific locations or stores with the mindset of creating the rarity and exclusivity of an item or brand. It is most common for marketing and distributing luxury brands, though a variety of brands and products use exclusive distributors sometimes. For example, a high-end luxury shoe brand may have flagship stores in major metropolitan areas only, and customers make a special trip to purchase. Exclusive distribution deals allow greater control over contract negotiations, rates, and product distribution because fewer entities are involved.
Find the right retail buyer in the right category & prepare your pitch.
Retailers: Retailers sell products and items to consumers online or in brick-and-mortar storefronts, and they buy from manufacturers and distributors with the goal of serving as an outlet to purchase products for resale. Retail outlets are the most commonplace for customers to make a purchase, whether at outlet stores, department stores, or online retailer platforms. Customer service in retail selling is imperative, and retailers often grow their offerings to be competitive, like providing home delivery service.
Distributors: Distributors oversee the sales and marketing of a product and establish strong relationships with manufacturers. They fulfill and deliver orders, though they also sell on behalf of the producer and study market trends and consumer activity to best plan future orders, shipments and sales. Distributors can sell to wholesalers, retailers, and agents.
Wholesalers: Wholesalers fulfill retail orders and purchase items in bulk to sell later, which often costs less initially. They buy from manufacturers and distributors and focus primarily on the storage and delivery of goods for the consumer market. They act as a trader in buying and selling of goods and rarely interact directly with consumers.
Know the numbers that they’ll be asking and what they need.
Any supplier will claim to be diverse if at least 51 percent of its ownership is held by someone from a diverse background (or multiple people). However, just because a company claims to be diverse doesn’t mean it is, and most supplier diversity initiatives require certification before entering into a contract with a diverse supplier.
A third-party certification agency—usually an association that supports the advancement of minority-owned and/or small businesses—is used to certify supplier diversity. Documentation, screening, interviews, and likely on-site visits are all part of the process to ensure that the company is diverse. It may take several weeks for your application to be accepted, but once it is, you will be accredited and immediately more appealing to supplier diversity programs.
I wanted all my communication to be linked together and the dashboard they have done that very well, so we went straight into targeting the right buyers in their network. They’ve done a great job integrating everything into one step-by-step process so I can focus on sales.
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.
Selling to Costco is becoming increasingly competitive as retailers are becoming more selective about their suppliers. Mr. Checkout is one of the fastest ways to FastTrack™ your product into the hands of distributors, wholesalers & retail buyers. Tell us about your product today to get started!
1. Start with the right questions: Before you try distributing your product to Costco, 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 Costco would be interested in selling your product? If you can strike a deal with Costco can you handle the production volume? Do you want to sell directly to Costco, or do you want to license your product to a manufacturer that will handle Costco?
2. Be prepared to profit: Does your product offer enough of a profit margin for Costco? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing, and wholesale distribution? Check Costco 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 is: If a product costs $1 to produce, that product will retail for $4. That product that retails for $4 will be wholesale for $2 to distributors and stores that purchase direct. Big box retailers like Costco 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 Costco is the right store for your product: The relationship between you and Costco starts with you browsing their store for competing products. If Costco already has a similar product, it is going to be very difficult to get your product picked up. Spend some time at your local Costco 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 is their shelf space. Keep this information in mind when you are preparing your presentation to Costco.
If your company is minority or women-owned, check Costco and see if they offer specific opportunities for those designations.
4. Pitch your product to Costco Decide whether it will be you or a representative to present your product to Costco. 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 Costco, 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 Costco. The percentage of commission versus, however generally a broker will take around 5% to represent your product to Costco.
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 Costco 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 Costco paperwork: Often Costco will have you go through an application process. However, before submitting the paperwork required by Costco, you should contact a buyer at Costco 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 Costco agree to stock your product will most likely mean a significant increase in volume. You should be prepared to ramp up your production and inform your manufacturer of this opportunity.
Having production, logistics, and distribution to sync is not only difficult, but it also requires a significant amount of time invested in customer relations. Also, Costco 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 Costco: Thoroughly assess the marketplace, carefully prepare for production growth, and take full advantage of the resources available to help you grow your business.
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There are several ways to get a product placed in Costco. 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 Costco, we have a few steps to help you get your product on their shelves.
Find a Distributor that Services Costco
Costco like many other large retailers uses a variety of warehousing and distributor programs. Most common is their main warehouse where they centralize their products and send them individually to each store. Costco warehouses are only for approved products and to have a product stocked in that warehouse you must first go through the buyer channels. General managers do not have the ability to secure your product a spot in a Costco warehouse.
There are many ways a product can go from manufacturer to retailer. Not all wholesalers serve the same market. Understanding your industry’s distribution channels and supply chain can help you find the right wholesale supplier for your retail or online business. Different types of wholesalers include:
Some retailers will move enough volume to bypass jobbers, or maybe in a smaller industry, importers sell directly to retailers. Each industry has its own unique distribution channels, which can then vary by product, region, or country.
To get your product into Costco, contact us to get featured in the next product review.
With tools to make every part of your process more human and a support team excited to help you, growing your business has never been easier.
