Small business agony uncle James Caan on how to pitch to a major retailer.
Dear James
We’re a new company selling organic products from our website on a monthly subscription basis. The market is fast-growing — but how do we approach and pitch to a major retailer such as Waitrose, Marks & Spencer or Boots?
Kate Herbert
Many people are scared and intimidated when approaching blue-chip companies such as major retailers, but there’s no need to be. Every business has a buyer whose job is to find innovative, saleable products. If your product is both these things, don’t be scared — you just need to stand out as a potential proposition.
First you need to, identify your unique selling point. Make sure your USP is identifiable not just by you but by the wider public. If, for example, the organic element of your product makes it unique, be sure this has broader appeal.
You then need to test the market. Approach people other than your friends and family — they’re obviously going to tell you the idea is great. Get out there and gain some reliable feedback.
Every business has a sector-specific buyer dedicated to finding new products. Identify your buyer, find their LinkedIn profile and know who you’re selling to. Then do your research — the more you know, the better chance you have of impressing, and ultimately succeeding.
Finally, ensure you have an understanding of retail margin. Many people came on to Dragons’ Den with a fixed retail price but without taking into consideration manufacturing fees, labour, packaging and so on. If you’re serious about this, you need to know your stuff and have the ability to apply that knowledge.
