Recently, I spoke on the Indie Business Radio Podcast about business. Donna Maria, the host and founder of Indie Business Network (yes! they have insurance for small home crafters; check them out here!) invited audience members to ask questions. One of the questions that came up was, “How do I work with stores?”
The primary job of a CEO in a small and growing business is sales, sales, sales. You would be surprised how many ‘problems’ go away with enough cash flowing in. It’s way more fun to figure out how to fill all the orders than standing around figuring out what to do with excess inventory.
The only way to get sales is to ask. In my answer (hit the ‘triangle button below’ to hear my live answer on the show), I outlined how to pitch to stores. Note that Donna Maria makes these monthly “Indie Business Network Access Q+A Coaching Calls” available to members to listen to – or call in and ask questions live. One of the listeners followed up with some questions – and if she’s having these questions, that means other small business owners are having these questions. Read on to find her questions and, how I answered them!
“I listened in on the Q&A Success Call with you and dM. I was hoping you could help me with a question I have. In your instructions on how to write a cover letter, you mention that within 1 single page I should include my pricing. But I am worried that this would take up the whole page. Did you mean to suggest that I only list a few items for initial interest? Or is there a way to add the full list of items without going over?
Also, as I am listening to the recording, I am having trouble understanding the last words in the p.s. line. “…I’ll be calling you in the next few weeks to…” I lost you at to.
Lastly, may I ask you for your opinion: I like to visit prospective distributors and they are most often small little boutiques. So when I walk in, I am greeted and asked if I need help with anything. Should I tell them why I am there, or should I just say, “Thank you, I’m just looking around.” I found myself doing both but feeling uncomfortable with either response. The latter is usually because I am nervous that they will remember me “snooping” in their store and not being forthcoming… Your thoughts on this would be so greatly appreciated :) – Klara”
Otion Soap Bar, Bramble Berry’s retail store. Getting your products into a retail space means more sales!
Wow, first of all Klara, thank you (!) for listening to my advice and taking the time to really think about it and follow up. That is such an honor and I am grateful that my experiences may help you grow your business. My ideal sample drop off scenario goes like this:
1. Scope out the store (this is the answer to your 3rd question). Politely ask whom to send samples to. “What a charming store. I love the line of XYZ and think your buyer has a great eye! I sell handcrafted soaps and cosmetics that would be a fantastic fit for your store. I’d like to send samples. Whom should I direct them to?” You can do this over the phone and in person. This response is an honest, friendly way to handle the invitable “How can I help you?” question.
2. Send samples with a cover letter (more on this below).
3. Follow-up. Follow-up. Follow-up. Follow-up. Follow-up. Yup. That’s five times to follow-up. 80% of sales happen by the 5th follow up – but many many salespeople give up on the 1st or 2nd try.
Here is an example of a great sample letter:
“Dear (insert name here),
I’m a big fan of your store (XYZ). I especially like your (whatever is relevant) Natural Products Section. I think my line of soaps and lotions would be an excellent addition to your store. They are attractively priced and have reasonable minimums.
I’ve enclosed (pick 2 or 3 samples) three of my best selling products with example pricing below.
- Lavender Shea Soap – 12 bar minimum – $2.75 wholesale per bar
- Energy Lotion – 6 bottle minimum – $6.25 per bottle
- Vanilla Bath Fizzy – 8 fizzy minimum – $4.25 per fizzy
Please note that I have 15 fragrances to choose from. I recommend starting with these products (XYZ). With that line up, your initial order would come to about $320. Enjoy the samples and please let me know if you have any questions.
Sincerely,
Klara (last name)
PS. I’ve thought of a great way to fit my products into your shop to really enhance the Natural Products Section. I’ll call you in the next week to share it with you and discuss the XYZ product line.“
Then, wait. When you follow-up in one week, be sure to state your name, your company, remind them who you are and then listen. Selling is as much about listening to your potential client as it is about you talking. Something like: “Hi Mary, my name is Klara from Klara’s Natural Soap Company. I sent you samples last week to try out. (wait for the recognition to dawn on the buyer; usually at this point they’ll say “I haven’t tried them yet” or “I tried them and love them” or some manner in between). What did you think of them? Oh great! I’m glad that you liked the Energy Lotion. It’s one of our other best sellers. What fragrances do you notice sell best out of your XYZ section?”
Let the discussion progress naturally from there. At the end, you can either ask, “When do you think you’ll be ready to place an order?” or “Are you ready to place an order now?” or “Based on what we’ve talked about, I’m going to put together a first purchase order plan for your store. Can we set a time to follow-up on Friday at 9:30 before the store opens?” Remember, it’s okay to ask for the sale.
More resources for retailers:
- How to make a Line Sheet (this is your full product pricing guide)
- Selling Your Soap Wholesale
- Tips on Cold Calling
- Lela Barker on how to pitch your products to shops
- Do you want to sell Wholesale? Be prepared!
- Selling wholesale (minimums, testing and shipping)
- How to design a wholesale order form
- Lela’s email pitch idea
Often, the scariest part of building a relationship is taking the first step. This is true for business relationships as well. I hope this answer makes this step a little easier Klara! Do you have any tips or advice when it comes to introducing yourself to potential business, or asking for sales?
Hadley says
Hi there. Great information regarding how to get into contact with potential buyers, but need some real assistance as well. I need to draft a letter that u can send out to buyers in the Raw Cotton Industry. I have the product to my disposal straight from the farm, but I don’t know who to contact or how to sell the product. Is the anyone that can perhaps assist me please? Thanks in advance…
Kelsey says
Hi Hadley! We aren’t very familiar with the Raw Cotton industry, sorry about that. You may be able to find forums online or on Facebook though! I would recommend searching groups and businesses to see if someone there knows more. 🙂
-Kelsey with Bramble Berry
June Smith says
This is very interesting. I was just thinking about approaching stores to have our products selling in their stores, and I was very excited when I saw your information and best of all your recording. I am extremely happy I came across this page. Thank you so much.
Kelsey says
You’re welcome June, glad you found the post helpful! If you have any other questions let us know. 🙂
-Kelsey with Bramble Berry
Dalynn says
I love your post. You share good advices. I still have a question. I understand the importance of giving free samples ,but can you pass the option if your product is expensive ( $200 -$300) ?
I design high end decorative pillows . I would love to place them in selected stores.
Thank you very much!!
Kelsey says
Thank you Dalynn, so glad you love the post! If samples aren’t cost effective for your products, you can send along pictures with the letter. You could also include fabric swatches in the envelope so they get an idea of the design. 🙂
-Kelsey with Bramble Berry
Dalynn says
I will.Thank you Kelsey for your precious answer. It makes sense to me.
Dalynn
Kelsey says
You’re welcome! 🙂
Nathalie says
First and foremost thank you so much for this information. I plan on shipping my samples to various locations, but not sure how a letter would fit in a 4x4x4 or 6x6x6 box. I know that presentation and first impressions are important and want to include the letter, but just not sure on how this would work. Any ideas, please?
Kelsey says
Hi Nathalie!
To keep the letter nice and straight, you can place it in an envelope or plastic bag with a piece of cardboard inside. That will ensure the letter doesn’t get wrinkled. You can also tape it to the bottom of the box, or place it on top of all the packaging so it lays flat. Another option would be a card with the letter folded inside. They are smaller, a bit sturdier and would look really cute. 🙂
-Kelsey with Bramble Berry
Angela says
I love reading the posts on your blog and tend to be a research-aholic 🙂 when I am interested in something. However, I’m still a little lost about business license and insurance. I’ve sold locally and have recently opened an Etsy shop which is getting a decent amount of views/favorites and some sales so far. My question is – when is it time to get an actual business license and insurance? I’d love to eventually start trying to get into the retail/wholesale space but should I have a business license/insurance while I’m small and just selling online? Any advice would be GREAT!
Kelsey says
Hi Angela!
Thank you so much, glad you love reading the posts! 🙂
Whether you need a business license depends on the state you live in. Some require business licenses if you’re selling products, others do not. To find out the regulations in your area you can visit your state’s Department of Revenue website.
As far as insurance, we recommend getting it! It can help you protect yourself from any losses related to business. If you have renters or homeowners insurance, some plans may allow insurance for your company. You can also get insurance through the Handcrafted Soap Makers Guild or the Indie Beauty Network. 🙂
Find out more in the So You Want to Sell Your Soap (Part One): http://www.soapqueen.com/business/so-you-want-to-sell-your-soap-part-one/
Part Two: http://www.soapqueen.com/business/so-you-want-to-sell-your-soap-part-2/
Part Three: http://www.soapqueen.com/business/so-you-want-to-sell-your-soap-part-3/
-Kelsey with Bramble Berry
Angela says
Thanks Kelsey
I’ll definitely check out my states website! – Thanks for your response.
Kelsey says
You’re welcome Angela! 🙂
Vivian says
In reading this blog I had a question pop up and I wanted to know what to do in the scenario when the recipient of your samples has not tried them. Do you wait another week and then call again to see if they tried the product? Do you proceed with the products that they have tried and then follow up with the untried products at that time?
Anne-Marie Faiola says
Hi Vivian,
So you’ve dropped off samples but they’ve been too busy to try them but they have tried a couple of your products?
I would absolutely continue the sales cycle with the products they have tried, get that smaller sale, wow them with your service and your promotional support, and then slowly expand your line into the store.
Getting a toehold, no matter how strong, is half the battle. Then, you can focus on growing the account.
Go get ’em! =)
jonathan says
Hey, I happened to come across your page. This was an awesome post. Very valuable to anyone in any industry.
Kelsey says
Thank you very much Jonathan, glad you like the post! We appreciate the kind comment. 🙂
-Kelsey with Bramble Berry
Leilani says
I am TERRIFIED to talk to people about my products (not sure why…). This kind of info really helps make it a little easier to dive in and try! Thanks!
Kelsey says
Hi Leilani!
Talking to people can be intimidating. I’m glad this blog post was helpful for you! Good luck selling your amazing products. 🙂
-Kelsey with Bramble Berry
Ginger says
I’ve heard some bad things about rice bran oil on teach soap.com. There is an olive oil spike apparently going on and people were looking for a replacement. Rice bran oil was suggested, but then people started to weigh in on how it’s not as good and shouldn’t be used. I just figured out a recipe that I decently like for my cp soaping and rice bran oil is an ingredient. Should I be using it or just olive oil instead? Please advise. Thank you
Kelsey says
Hi Ginger!
Rice bran oil is rich in vitamin E and antioxidants and is often used as a substitute for olive oil. It creates a stable bar and can be used up to 100% in your recipe. I’ll include a link below with more information.
Free Beginner’s Guide to Soapmaking: Common Soapmaking Oils: http://www.soapqueen.com/bath-and-body-tutorials/tips-and-tricks/free-beginners-guide-to-soapmaking-common-soapmaking-oils/
Using rice bran oil in your soap is definitely personal preference! Although it is similar to olive oil, it will have a slightly different texture. You may want to make a small test batch to compare.
We love using rice bran oil in our recipes! I’ll include a few tutorials using it below. 🙂
Lemon Poppy Seed Cold Process Tutorial: http://www.soapqueen.com/bath-and-body-tutorials/cold-process-soap/lemon-poppy-seed-cold-process/
Cotton Candy Cold Process Soap: http://www.soapqueen.com/bath-and-body-tutorials/cold-process-soap/cotton-candy-cold-process-soap/
-Kelsey with Bramble Berry
Halsted says
Your pitch is excellent. It is short, complete and gets right to the point. This is really helpful for other people trying to market their own creations.
Kelsey says
Hi Halsted!
I’m glad you found this post helpful! Having a short pitch can really help get your point across quickly. 🙂
-Kelsey with Bramble Berry
Olivia says
P.S. – Is the new blog design permanent?
Olivia says
Wow, I could not believe how timely this post was. The day before you posted this, I was thinking about how I would go about asking our local feed mill if they would be willing to sell some of my soaps. Click over to the Soap Queen blog, and boom, there it is: my question answered. This has given me a lot to think about, thank you so much!
Your business posts are some of my favorite of all the Soap Queen blog posts! Please keep them up!!
Kelsey says
Hi Olivia!
That’s awesome, what good timing! So glad you found the post helpful, and I’m glad you like the business posts!
Please keep us posted on how it goes. 🙂
Also, this new design is permanent! We love the clean new look. 🙂
-Kelsey with Bramble Berry
Rachael says
This was so helpful, i have avoided doing sales and more or less depended on word of mouth of those who are buying from me.
You are a “God send” thank you.
Im getting on the road next few weeks can’t wait to try
Blessings
Kelsey says
Hi Rachael!
You are so welcome! I’m so glad you found this post helpful. Good luck getting your awesome products in stores. 🙂
-Kelsey with Bramble Berry
Louise Vargas says
What a great article! It doesn’t seem so scary when broken down this way 🙂
Kelsey says
Hi Louise!
That’s awesome to hear! So glad you liked the post. 🙂
-Kelsey with Bramble Berry
Anne-Marie Faiola says
It’s funny – so much about business is that way – it sounds so big and impressive when you hear about it for the first time but when you actually get into it, it’s just all these tiny little steps, strung together, to create one big huge event. =)
Sandee Ferman says
Great advice. You even included a template conversation! These are excellent suggestions for getting the first sales going. I especially like the minimum order suggestions. Better to state it up front than to wait for someone else to make that first move.
Kelsey says
Hi Sandee!
Thank you so much, I’m happy you enjoy the post!
-Kelsey with Bramble Berry
Anne-Marie Faiola says
I learned at a Fortune Magazine Conference I attended this year that it’s important for YOU to set the price point bar – or else the buyer will and you won’t like where their brain goes! =) Example: wine lists. It turns out that if you list the cheapest wine first, everyone buys the second cheapest wine. But, if you list the most expensive wine first? Everyone buys the 3rd or 4th wine down which is nowhere near the second cheapest! It’s because their idea of what was ‘reasonable’ was set by seeing that first high number. Go figure, right? It was a big ah-ha moment for me. Steve Martin (not the comedian – the guy that wrote ‘The Small Big’) writes a lot more about pricing psychology if you’d like to research it more =)
Margaret Grimm says
I love your business posts! There is always a lot of helpful information in them. Thank you for this. I am growing my hobby business slowly, and stuff like this is what I am gearing up for sometime next year 🙂
Kelsey says
Hi Margaret!
I’m so glad you like the posts! Also, that’s so exciting. Congratulations on growing your business. We have a great post on turning your hobby into a business you make like. 🙂
-Kelsey with Bramble Berry
5 Tips to Take Soaping From Hobby to Business: http://www.soapqueen.com/business/5-tips-take-soaping-hobby-business-slideshare-presentation/
Anne-Marie Faiola says
Thanks Margaret! I love writing them – and if there’s something more you’d like to know about that I haven’t covered or would like me to expand on, please let me know. I’m always looking for more things to write about =)