Thousands of businesses every year dream of getting a vendor number with Wal-Mart, the world’s largest retailer. However, more than 98% of the companies that approach Wal-Mart every year will leave empty-handed.
Why do some companies make it and some don’t. At Retailbound, we have our theories on this. Some companies are rejected because their product is too expensive or maybe just isn’t the fit for Wal-Mart and it’s customers. In some cases, it could be timing, not the product or the price. The buyer may have already planned to fill the plan-o-gram with another vendor.
Here is our top 10 list why a company or it’s products get rejected from Wal-Mart or any large retailer year after year:
- The company wasn’t financially in a position to do business with the retailer
- The product didn’t have a track record of sales with other retailers
- Poor packaging
- No display or plan for displaying merchandise in stores
- No marketing plan and/or no marketing support
- The company did not do it’s homework when meeting with the buyer
- Pricing was not right
- Poor or ineffective presentation to the buyer
- The product had a niche with limited mass market appeal
- The product was not market ready
As a former retail buyer for 2 large billion dollar retailers, #’s 1, 2, 5, & 6 were the most common for the vendors that I met with over the years.
Whether you are pitching Wal-Mart or any large retailer, remember to do your homework, build a strong foundation and wait until the time is right. Good luck and good selling!