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!

Toy Store Distributors

Distributing to Toy Store Distributors is all about satisfying the store’s needs in what type of products their customers demand. Toy Store Distributors want a product that has been established and will sell quickly. Contacting local Toy 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 Toy 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 Toy 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.

Toy 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 Toy Store Distributors will make its way to Toy Store Distributors all across the nation through different distribution channels. Establishing and building relationships with distributors is the best way to get products into Toy 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 Toy Store Distributors

The toy industry is a multibillion dollar industry. With new toys being produced in large quantities by the year, producers have a field day with the large market that opens up. Many companies with their patents produce toys with an eye for safety and function. They ensure a smooth distribution of their products through licensing and effective distribution. As with many other products also, they ensure upgrades on their toys.

The toy manufacturing industry has increasingly grown to become that of the Chinese and billions of dollars of these products are shipped into the United States every year.

However, what is needed here is the distribution of these products to retail outlets:

Clearance King

Toy Store Distributors 1Clearance king is a wholesale supplier of Gifts and Kids toys. The company has an impressive range of Gift and Toys products at a discounted price. Your business deserves to have the best quality of products yet budget-friendly.

Their online or offline store stocks up on good quality, cost-effective products to fit your business needs. Also, there are often deals and discounts on various occasions and during events. The company offers gifts for special occasions like festivals or even round the year events like weddings, birthdays etc. Stock up on cards, wrapping papers too.

Group Sales, Inc

Toy Store Distributors 2Welcome to Group Sales, Inc.—one of the nation’s largest distributors and fulfillment service providers within the toy industry. Since 1991, the distributor has operated as a toy and gift distributor for a variety of retailers including specialty stores, travel centers, and e-commerce partners. The company has proudly supported and supplied toys for schools and charities, including Toys for Tots, Salvation Army and others.

Bingo Deals Corp

Toy Store Distributors 3Bingo Deals Corp. is an internationally renowned company name and it stands behind its quality and reliability. The company sells all things toys and hobbies including beach toys, outdoor toys, Halloween, Easter, and Christmas toys, games, party supplies, and much more.

Everest

Toy Store Distributors 4Everest is one of the largest toy, game, and gift manufacturers and distributors, located in North America. They have been in business since 1992 and offer only the highest quality and most reputable products on the market.

At Everest, they pride themselves in having exceptional customer service. When a call comes in during business hours it hardly ever goes to voicemail and you will never get an automated message. Instead, their friendly and knowledgeable game & toy advisors are always ready to assist you in any way they can.

The team serves customers in the U.S., Canada and worldwide. They offer a variety of games, toys, novelties, and gifts that cater to many different markets.

Treasure Chest

Treasure Chest offers well over 300 items in a wide range of categories including general merchandise, gifts, games & toys, food & beverage related, health & beauty, premium sunglasses, Custom Screen-Printed T-Shirts, licensed team merchandise for NFL, MLB, NHL, & NCAA.

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!