Selling to Mom and Pop Shops

29/01/15

A long time consumer product member of the IsraelExporter.com recently shared with us some interesting information.

 

For many years this company has, and still is selling in big-box retailers in several countries. 

 

Sales were OK, but not as strong as they hoped for.

 

They were really looking for their big breakthrough which never really happened.

 

Last year they decided to change their approach and re-focus energies selling to small mom and pop shops.... within a few months sales exploded.

 

A few things they discovered:

  • Mom and Pop shop owners know what their customers like. 
  • Mom and Pop shops (depending on industry) are very niche focused - customers and shoppers are coming there for a very specific reason.
  • 'Up-selling' related products is more effective in a Mom and Pop shop than a big retailer. 
  • With so many Mom and Pop shops - this creates endless opportunities.

Getting Started:

This company first needed to come up with a strategy on how to approach the small Mom and Pop shops.

 

The challenges of selling to a Mom and Pop shop:

  • Limited shelf space in the shop
  • Limited cash 
  • Shop owners are used to selling what they have and fear taking on new lines.

Overcoming the challenges:

1) The company hired a top notch sales rep who knows the market. 

2) This company decided that instead of just showing up with the products at the shop and asking the shop owner if he/she would be interested. They designed a point-of-sale display and offered each shop owner a great deal: "If you take on our products you won't have to worry about creating new shelf space...you'll get this nice looking point-of-sale display for free."

3) When ever they approach a new potential shop owner - they simply show pictures of other shops carrying their products

 

Summary:
It's not enough to just offer products. You must offer a complete and attractive solution that will save the Mom and Pop shop owner the headache of trying to figure out how to display and promote your products.

Above all: you must have a professional on ground in the market who intimately knows the market.

 

BTW: 

Skylimit (parent company of the IsraelExporter.com) has a satellite office with a real professional on ground in the Netherlands - companies interested in the Netherlands market, can email us at: contact@israelexporter.com 

 

 

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