MISTAKE #43: You need to set and manage the right expectations

When a buyer signs up to carry your product, they’re making a commitment based on numerous expectations they have of you and your product.

They expect your product to deliver a certain net profit margin:  The difference between the cost you’ve promised to sell it for and the average retail price you’ve convinced them shoppers will pay.

They expect each store to maintain a certain sales rate (units per store per week), which determines the annual revenue.

They expect you to provide sufficient products in a timely manner to always keep the product in stock.

They expect you to invest in activities that create demand for your product that drives shoppers to buy it at their store.

These expectations are generally based on three things:

The minimum productivity the retailer needs from the shelf space they’re giving you.

The buyer’s intuition is related to how well your product should be able to perform.

Whatever performance expectations you’ve set are based on information presented in your line review.

You only control one of these.  So you better do a good job.

BEING REALISTICALLY OPTIMISTIC

Salespeople know it is easier to sell a big idea than a little idea.  It is easier get a retailer excited about making a lot of money rather than a little money.

But it is also easy to ruin a million-dollar idea by getting people to expect it to be a $10 million idea.

It is a dangerous game to sell unrealistic promises that are beyond your ability to honor.  The justification of ‘it will get us in the door so we have a chance to prove ourselves’ rarely works out. 

Your product needs to start out as strong as possible because the moment your item shows weakness, it will be on every competitor’s radar as an easy item to target for deletion.

You can’t expect to start out weak and become stronger over time.  While it is possible, it is rare.  And it takes dedication and investment few companies are willing to make, and fewer retailers are willing to support long enough to see the payout.

Remember that buyers aren’t fans of products that have threatened their ability to meet their numbers for the year.  They don’t like getting burned.  They don’t forget when they’ve been misled.

FOCUS ON OVER-DELIVERING, NOT OVER-PROMISING

Most salespeople seem more comfortable over-promising and coming back to ask for forgiveness (or be quick to produce a long list of excuses for why the failure wasn’t their fault) than they are at presenting a realistic scenario and doing all they can to significantly exceed it.

They forget that buyers are smart people.  They’ve got great B.S. detectors.  And I think they are hungry to meet more vendors that are willing to be more honest with them.

A significant portion of the buyer’s time is wasted because of these failings:

They listen to vendors over-promise only to later confront the same vendors about sales that prove they over-promised.

They listen to vendors make apologies for their ‘mistake’.  Or they listen to excuses for why the over-promise was justified.

Which leads to scrambling to close sales gaps from those under-performing products.

As you craft your sales pitch, consider the accuracy of the promises it makes and the expectations it sets.  Be optimistic, by all means.  But be realistic.

Present a reasonable sales forecast based on realistic assumptions, including what actual awareness and demand for your product look like.  Only present marketing activities you’re already committed to funding and executing.

Not sure if your sales pitch is overly-optimistic?  Looking for an external B.S. meter?  Need help balancing the sizzle with the substance?

We’d love to help get you ready.