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retailing Martin Lee on 13 Mar 2007 11:16 pm

Why Getting Your Products into Walmart Can Kill You

Some people might think that if they can get their products into a major nationwide retailer like Walmart, then the sales of their products will no longer be a problem.

How wrong.

There are many other issues to consider like packaging and merchandising that determine whether the products will sell. Unless you are a big brand name that can afford to spend millions of dollars on advertising, your product will be on the shelves competing with all the other similar products waiting to be spotted by consumers.

Even if the products does sell, there is still a major pitfall to avoid.

Consider this.

If a modest $100 worth of your products are sold in a Walmart store every month, multiply that by 3,000 stores and you now have a turnover of $300,000 in a month.

After taking into account time for payment and capital held up in inventory, you might need $600,000 to $900,000 in capital just to keep things going.

If you did not plan your cashflow properly and budget for sufficient cash, you could face a cash crunch and a serious problem.

Does this mean that a small business can never have his products sold in Walmart stores or other national retailers? Not necessary. Fortunately, there are other possible ways as I found out from listening to a CD by a person called Joe McVoy.

Using one method, it is possible to go from a concept for a product to being sold in Walmart by spending only $300.

Now, Joe is someone who has sold $45 million of his own products to Walmart and other retailers and he has recorded a 60-min CD sharing some of his strategies and techniques.

If distribution is one of your problems/concerns, then you might be interested to listen to his CD.

Even if you do not have immediate plans to create and sell a product to the mass market, it is still a good idea to learn about a few new distribution methods.

After all, the person who gets the best distribution wins half the battle.

By the way, you do not need to pay for anything as Joe is giving away the downloadable files for free. If you are staying in the US, you have an additional option to have the physical CD shipped to you by paying $3 for shipping.

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