This is the second in the series from a webinar with Marc Nathan, consumer package goods (CPG) and Tech business mentor.
How do you get people to buy a product from a shelf?
Sampling and signage is the key. If they can’t see it, they can’t buy it. For example, a bike tool at a bike shop – to promote it, get the person to test it and sample it. If it is a food product, get people to sample it. If it is a pillow – show them the cross section of it to prove why it is better than the competition.
How do investors look at CPG vs. software?
Software has valuations based on revenue. CPG is up and down and investors are looking at sales velocity – how fast can you get product into people’s hands and will they rebuy? How fast do the store shelves need restocked?
How does a product get on store shelves?
Start with getting it to friends and family. Then expand to farmers markets and other self-controlled outlets – to get outside of friends and family halo. Some outlets are actively seeking new projects. Whole Foods, for example, has foragers that are out looking for new products for Whole Foods to sell. You can also can go pitch at trade show association meetings and seek out national buyers for chain.
You can also pay for placement. Waterloo sparkling water, an Austin-based flavored water company, paid shelving fees to Whole Foods and quickly developed the company, then sold it for $400 million. That is not going to happen for everyone, but it pays to know people and you have to diligent because opportunities exist. At outlets such as 7-Eleven up to 20% of the products sold are up to the discretion of the store franchise. That franchise owner is reachable and persuadable to carry your product.
If you have questions about starting your own business, contact IDEA Hub Director Maia Donohue at donohuejer@uwplatt.edu and learn more about IDEA Hub at https://www.ideahubaccelerator.com/