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benkinley benkinley is offline
Entrepreneur
Join Date: Apr 2008
Posts: 30
All of the answers to your questions are dependent on exactly what product you are trying to launch. As far as I am aware, if you want to make a "sales pitch" to the big retailers you should go about doing this by making contact with their head office. If they sound interested in your product you will be invited to demonstrate it/give a presentation and the retailer representitve will have the oppertunity to ask you questions. You must have information about manufacturing, cost per item, how many can be produced etc. - You will need a solid plan if you are going to approach the retailers with your product.

If you are getting to the stage where you want to pitch your product I would suggest that you sort out your packaging first. Packaging can really sell an idea. Im not too sure that you have done this because you had questions about the barcode. Barcodes are unique to every product and the numbers on the barcode are not random - they code for specific information e.g. where the product was manufactured.

The mark up price from cost price is usually relative to the number of products purchased by the retailer. I.e. you will be expected to narrow the margin between cost and mark up if the buyer will purchase a greater amount of your product.

Press is again dependent on your product. If you have something original you have a much higher chance of being able to obtain press coverage. Contacting appropriate magazines and obtaining interviews with their writers can gaurantee a level of press coverage.

Hope thats helped a bit,

Ben
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Monty1 Monty1 is offline
Maven
Join Date: Dec 2006
Posts: 76
In terms of mark up it can be useful to work backwards to give your self an idea of costing.

For example if a similar product at the store your targeting retails at 20, then the retailer would be looking for a mark up on that (2 to 2.5 is not unusual for the areas I deal with).

Then work backwards and see if you can make your required profit allowing for the retailers mark up. Much better to figure out if its worth while before you approach them. Good luck!
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Belinda Belinda is offline
Connector
Join Date: Apr 2003
Location: Staffordshire
Posts: 655
Hi Fiona,

What is your product? Some have lower margins than others so it would help to know.

I researched barcodes years back but recall that you are allocated an EAN and that is then loaded into the retailers tills. If I find the info on my PC I will post it.

No your costs are your business and you need to stick to what profit you need to cover ALL your costs. Be prepared to give a discount to multiples so it's worthwhile going in higher with the discount in mind.

Cheers,
Belinda
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benkinley benkinley is offline
Entrepreneur
Join Date: Apr 2008
Posts: 30
Yes Im pretty sure Fiona is right - you don't have any legal obligation to discuss with the retailer how much it costs you to produce the product.
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Belinda Belinda is offline
Connector
Join Date: Apr 2003
Location: Staffordshire
Posts: 655
Hi Fiona,

Here is the info about barcodes:
http://en.wikipedia.org/wiki/European_Article_Number

This is where you apply for a barcode:
http://www.gs1uk.org/membership/membership.asp#how

Steps on how to implement your barcodes:
http://www.gs1.org/productssolutions...mplementation/

You have to become a member first which for startups is 99 for your joining fee + 99 first years subscription. It also appears according to the application form you have to be a registered company so if you are not that may be something you have to do.

As you are seeking to sell to retailers you may also want to consider voluntary VAT registration, when dealing with multiples it will give you instant credibility and your customers will expect to pay VAT.

If you can let us know the industry the product is in we can perhaps help more on the margins.

Cheers,
Belinda
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Belinda Belinda is offline
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Join Date: Apr 2003
Location: Staffordshire
Posts: 655
If you look at the GS1 website, this is the UK body that is in charge of allocating companies with barcodes, you need to become a member of GS1 before applying.

Belinda
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