[adbwell]

Okay! So, here's the deal.....

I sent some sample product pics and a eCatalog to a sales company in Arkansas that works directly with Walmart. A couple of days after I sent the email, I receive an email from another person who had my email forwarded to him from the original person I sent it to. Well, it turns out the person he forwarded it to is a former Walmart buyer who is less than two yrs removed from the company (he is now a Senior Business Developer for a company who works directly with Walmart).

He said he liked the concept of my brand, and that he wanted to discuss with me my "go to market strategy", and if my company is capable of handling large volume orders. We then scheduled a conference call a week later. We had the conference call and it went great! He asked me to send him samples, followed by an email with him saying he couldn't wait to see my product "live". He mentioned something about taking it to the current Walmart buyer but he said it so fast I really didn't catch all of it.

On Tuesday, I sent him the samples, tracking the delivery through USPS and see that if was delivered at 9:30 a.m. on Thursday. It is now Friday and I have not heard back from him. Am I overreacting for expecting him to have called already?

Thing is... I never expected this to happen. He is fully aware that I have NO distribution channels and have never been in retail. However, he does understand that due to the nature my products are made the reason why I've gone straight to established retailers, first.

This is gonna be a LOOOOOONG weekend for me regardless, because it's all I'm gonna be thinking about. But, am I being too impatient?

 

[TYGERON]

Re: Wally mart

Haa-haa!

You're being too impatient

Sounds promising so far.

Are you prepared to handle a HUGE order?

And post back the progress.

 

[adbwell]

Re: Wally mart

Haa-haa!

You're being too impatient

Sounds promising so far.

Are you prepared to handle a HUGE order?

And post back the progress.

Thanks for the reply. I guess I just never imagined being in this situation. haha

And, YES!!! I am prepared to handle Walmart size volumes.

 

[royster13]

Re: Wally mart

And what about 90 to 150 day terms and returns?.....

 

[adbwell]

Re: Wally mart

And what about 90 to 150 day terms and returns?.....

Net 30 terms. We will discuss returns on next conference call. Couldn't really get into too many details on the last call.

 

[adbwell]

Re: Wally mart

He said they'll likely give my brand a test run in 500 Walmart stores for a 8 week period with the contingency that I sell 85% (or more) of my products. If I meet the sales quota, they'll take me on nationally.

 

[superD70]

Re: Wally mart

It's shareholder week up here, I live 5 blocks from the home office.
It's freakin crazy right now so hold tight and be prepared to fly up here at a moments notice and be ready to get grilled, they are vicious when it comes to making terms, its their terms or nothing so be prepared. my wife works in store layout there.
That's great you even got a chance at this, they can make or break you, I hope it's the former and not the latter.
If you are asked to come up PM me and we can have dinner & drinks and discuss and toast to your good fortune!

 

[cadart]

Re: Wally mart

Way too impatient my friend. Might not get a call until a week or two. Could gone out of town, other meetings, on vacation, a hundred different things. Or they may call you this weekend, who knows. I once sent a sample to a perspective client, did my follow up calls and almost give up on them. 3 months later, bam, new client!! Turned out we just weren't that high on his priority list, but today they are probably one of our best customers. Net 30 terms would be awesome, but i found the bigger the company, the longer they drag out payment.
Best of luck, hope you land them, but be aware of their return policy.

 

[adbwell]

Re: Wally mart

It's shareholder week up here, I live 5 blocks from the home office.
It's freakin crazy right now so hold tight and be prepared to fly up here at a moments notice and be ready to get grilled, they are vicious when it comes to making terms, its their terms or nothing so be prepared. my wife works in store layout there.
That's great you even got a chance at this, they can make or break you, I hope it's the former and not the latter.
If you are asked to come up PM me and we can have dinner & drinks and discuss and toast to your good fortune!

Thanks for the heads up! I guess I'm just overreacting.

I heard Walmart does everything though email? Would they really want me to head down to Bentonville? If they do, I'll let you know.

 

[adbwell]

Re: Wally mart

Way too impatient my friend. Might not get a call until a week or two. Could gone out of town, other meetings, on vacation, a hundred different things. Or they may call you this weekend, who knows. I once sent a sample to a perspective client, did my follow up calls and almost give up on them. 3 months later, bam, new client!! Turned out we just weren't that high on his priority list, but today they are probably one of our best customers. Net 30 terms would be awesome, but i found the bigger the company, the longer they drag out payment.
Best of luck, hope you land them, but be aware of their return policy.

Thanks! I'll keep that in mind. Would you happen to have any insight on what return policy they'd lay on the table?

 

[missswissinc]

Re: Wally mart

good luck. Hope you land a contract with them.

 

[cadart]

Re: Wally mart

Sorry I don't. My brother in law thought he'd use walmart in his distribution of a fishing pole holder called "3rd Grip". This was 5 years ago, so going on memory - but he declined going with them because of the return policy, inventory that he would have to keep on hand for their beckon call, not enough profit margin and no long term commitment. Basically, if it sells well your in, if it slows your out. He wasn't willing to take the gamble because he has a young family. He doesn't sell them anymore anyway so who knows if it was the right decision. Just heads up information for you to chew on. Get a copy of the contract asap (when available) have a business law lawyer go over it and explain it to you. If you dont have one start looking now, ask around in your area cause you'll need to sit with them. Good luck and let us know how it goes.

 

[Inkognito]

Re: Wally mart

when you sent your samples and eCatalog, did you also include an NDA or a Confidentiality Agreement to be signed? i'm not trying to freak you out, but is your concept something that could be easily copied or replicated at a lower cost overseas? i hope for your sake that you're dealing with an honest company.

also, Walmart, like all big retailers, can be very difficult to deal with. Potential for big orders, but all on their terms.

hope it goes well for you.

 

[adbwell]

Re: Wally mart

Sorry I don't. My brother in law thought he'd use walmart in his distribution of a fishing pole holder called "3rd Grip". This was 5 years ago, so going on memory - but he declined going with them because of the return policy, inventory that he would have to keep on hand for their beckon call, not enough profit margin and no long term commitment. Basically, if it sells well your in, if it slows your out. He wasn't willing to take the gamble because he has a young family. He doesn't sell them anymore anyway so who knows if it was the right decision. Just heads up information for you to chew on. Get a copy of the contract asap (when available) have a business law lawyer go over it and explain it to you. If you dont have one start looking now, ask around in your area cause you'll need to sit with them. Good luck and let us know how it goes.

Okay... so, I'm always hearing about razor thin margins when dealing Walmart.... can you give me an example? Let's say X product cost me $10 to produce, and I add $5 profit on top (making it $15). How much lower do you think they'd try and go? Most companies double their wholesale price, but I only add a 50% markup. I sure hope they don't want to go TOO MUCH LOWER than that.

 

[adbwell]

Re: Wally mart

when you sent your samples and eCatalog, did you also include an NDA or a Confidentiality Agreement to be signed? i'm not trying to freak you out, but is your concept something that could be easily copied or replicated at a lower cost overseas? i hope for your sake that you're dealing with an honest company.

also, Walmart, like all big retailers, can be very difficult to deal with. Potential for big orders, but all on their terms.

hope it goes well for you.

It's a honest company. They've been around for a while. The brand concept is quite simple, actually. It's the trade dress, quality and price points that standout. He said he hasn't seen a trade dress and brand concept like it.

 

[adbwell]

Re: Wally mart

good luck. Hope you land a contract with them.

Thank you!

 

[ordenta]

I remember a few years ago there was a tv special on the whole process of small businesses getting their product into walmart. They showed a person going through the approval process with their product, and the whole deal with walmart wanting a certain price and the person having to give in to their price. It was interesting. There was like a building full of people showing their products, all trying to get in the stores. If they take your stuff, that would be awesome! But you need to count on a small profit per item, but hope to make it up in the volume you sell. I am excited for you and hope it goes well for you.

 

[selanac]

Re: Wally mart

This is very interesting. Hope you do well.

I'm with the other poster. Small profit per item, but large volume. Once they decide to go with you, let us know so we can all go out and buy one. Lol.

If you remember, Killer Brand did that. Don't remember the store, but it was a store in most malls. Also saw a lady selling her products on the Donny Doche show (spelling). She called everyone she knew and as them to go buy the products.

I'm sure you have a great quality product for them to be interested.

 

[kimura-mma]

Re: Wally mart

Okay... so, I'm always hearing about razor thin margins when dealing Walmart.... can you give me an example? Let's say X product cost me $10 to produce, and I add $5 profit on top (making it $15). How much lower do you think they'd try and go? Most companies double their wholesale price, but I only add a 50% markup. I sure hope they don't want to go TOO MUCH LOWER than that.

It's tricky. Walmart isn't going to want to base their retail price around your wholesale price and production cost. They will likely assign a retail price based on the product, competing products, the market, etc. Then they will want to pay 50% of that retail price as the wholesale price. If that price is lower than your current wholesale price (or even your production cost), then it will be up to you to get your production costs down to a point where you can profitable in this deal. You will need to accomplish this through high volume and overseas production.

But keep this in mind...
Your current production costs may be high based on low volume and domestic manufacturing. But what if Walmart places a huge order... What will your production costs be based on that higher volume? And have you researched sources for overseas production? You may already be able to get your costs down significantly.

 

[superD70]

Re: Wally mart

I heard Walmart does everything though email? Would they really want me to head down to Bentonville? If they do, I'll let you know.

Oh yes, once they've made the decision your product is a viable item for them you will be required to fly in to "sell it" to the buyers, there is a long hall of small rooms where this is done every day, it's amazing how many people fly in daily to do just that.
Like someone else stated, you will have to be able to produce mega amounts of product on your dime, and carry the balance for at least 30-60 days.