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1. Target. Determine your product reach (for who is this product intended: specific demographic, interest group, etc. as well as specific age, market, etc.)
2. Categorize. Determine where in the store it will be sold (electronics, plush, boys, girls, educational, novelty, etc.) each area of the store has a different personality and typically are serviced by a different buyer. Some products lend themselves to more than one area of the store. Make sure the focus is clear so the buyer will not be confused by the appropriate category. Confusion = no orders.
3. Research. Check out any product in your product category that would be considered competitive with yours. See where these products are sold, how they are packaged, features and price-point. Now, determine what kind of stores you will be targeting (specialty, mass market, discount, department store, catalogue, special interest, promotional, etc.) Use the information you have gathered. These are keys to what the buyer at each of these targeted retail stores or outlets are willing to purchase and insight into what your competition or competitive edge might be.
4. Price. From your research, determine your price-point target and requirements. You will now work backwards from this price-point to determine your target manufacturing costs and to modify product components and materials to meet that price-point. Typically, you will want to achieve a 4x mark-up from cost of goods to retail. So, if your product cost you $1.00 to manufacture, you will wholesale it to the retailer for $2.00 and it will retail for $3.99.
5. Components and costing. Rehtmeyer, Inc. works with many factories to determine the best cost for the production of your product. We may suggest additional features to enhance appeal, reduce costs, etc. or help you substitute items, materials or other components to reach your goals. The way your product is packaged can be crucial to the type of store or positioning you may be able to achieve. Unusual packaging (shapes, sizes) may limit or negate the product's marketability in some retail environments.
6. Find and learn about buyers. Create a "hit list" of retailers- but don't contact them quite yet. You are building your base and reach right now. Some great resources to get you started include: American Specialty Toy Retailers Association (ASTRA), Thebloomreport.com, and Playthings Magazine annual "Buyers Guide", and Rehtmeyer, Inc. - Toy Directory online marketing program. You can attend or exhibit at trade shows too. They can be a bit costly, so make sure you have specific, defined goals at any show you will be exhibiting and know who that show attracts (specialty, mass, "lookers" but not buyers, just media, etc.) Learn the buyers' language and what they will expect, demand or want from you. This is your learning phase. You will need to truly understand how to work with buyers. You're likely to only have a single chance to get the interest and attention of a buyer. See our separate article entitled "Speaking the Buyers Language" for greater insight on this mysterious language and set of demands.
7. Time line. Determine your time line for getting finished goods to your buyer. Again, you'll work backwards. From the target date the product must be in the stores, you will need to consider the following steps:
a. In store date (determined by the buyer)
b. In central warehouse or distributor date (determined by distribution time requirements-this could be 30 days or more prior to the "in store date")
c. Shipping time (ocean, customs & trucking) to get to warehouse, distributor or store
d. Selling/marketing time
e. Manufacturing time
f. Tooling time (if required- typically allow 45 days-this may be done in conjunction with graphic development)
g. Graphic development time including time to set to production die-lines, sales sheets, web development, etc.
h. Product development, enhancements, etc.
i. General business development to set up your company
Note: When working with our team, Rehtmeyer, Inc. project managers will assist you with these time schedules and your needs.
8. Create a marketing strategy. Think about "now"-- Consider clever ways to get attention. Promotion and marketing efforts can be cost effective or even free if you're clever about them. Most stores like offering in store demonstrations. Think about contests, mall exposure, special events and anything else that can get you media attention and consumer exposure. Think about the "future"-consider product line extensions and developing your single product into a product line. Consider your ultimate goal too-do you just want enough sales to be successful and then sell out or license your product to another company or do you want to start your own company like the makers of Cranium™?
9. Sell. Once you know your audience, packaging, and costs, have production or high quality prototypes and sales sheets, and are armed with an understanding of who your buyer is and how to sell to them,… you are ready to approach buyers. The larger the retail organization to whom you are selling, the more demanding they will be. Smaller retailers are more approachable as a whole and more accepting of prototypes, entrepreneurs, and early phase presentations. Larger retailers will be more receptive to finished goods, lines or products and items with recognized brands, licenses (TV, movies, etc), and strong promotional and marketing campaigns behind them.
10. Be passionate and tenacious. No one will have the passion and interest to bring your product to market like you will. Use your passion and interest to bring your product to market. Every major success story in the toy and game industry came from an inventor or an independent entrepreneur. You will be as successful as you want to be.
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