Welcome to Distribution
It always floors me when I see incredible displays of talented design, engineering and manufacturing get shunned as if they were no great feats. Any one of these disciplines, when done well, is a work of art. The successful combination of all three is a thing of beauty. Then of course, this beauty must be taken to market, where the rubber meets the road and great products get run over and sometimes left for dead. I have seen some distribution people and reps turn their noses up to at the most innovative new medical products in the world. My favorite is when they tell you how you should have made it, as if they could have made it better, cheaper, faster. It’s as if they’re saying, “What else you got?”
If you really want to get Distribution’s attention, shy of setting off a nuclear bomb, you must work backwards, proving from the outset that your product is good enough to change the behavior of the end user. While that is easier said than done, there are things you can do to give your new product the good shot it deserves.
The Laser Approach
Rather than using the shotgun approach-splattering your new product all over creation-think about picking a segment of your territory or selecting end-user accounts and labeling them, beta site (test) accounts. This becomes your direct-sell, evaluation or gives away zone. After you have proven that you can reach the end user, you can replicate the business model. Best of all, you can take your documented results to Distribution. You will still be up against competition, but Distribution should at least take you more seriously — as long as you show them you can put your competition on the ropes.
Make Distribution more comfortable by explaining that it is not your intention to sell direct over the long term. Tell them that as soon as they come on-board or at least bring you in as secondary vendor, you will turn over the direct business from your beta sites. (Make sure you’re coming in at a good margin).
The Deal is in the Details
You need to do your homework when it comes to presenting your value proposition. Before going into a room with Distribution, you need a clear understanding of where your product fits in the marketplace, along with a presentation dressed to impress. Be sure you have:
- Cross references for all competitors
- A well-thought-out pricing strategy
- Policies for minimum published pricing, especially for e-commerce.
- All regulatory approvals and insurance in -place.
- A slick Power Point presentation that will grab and hold Distribution’s attention. We live in a noisy, fast-moving and chaotic jungle. Like everyone else, Distribution is operating on information overload. You have to blast into their minds to get the attention you deserve.
Step Back
But even when you’ve done your homework diligently and given an Oscar-winning performance, Distribution can shoot your product down. That’s when you should stop what you’re doing for five minutes, step back and really look at your product through a different lens, perhaps one with a filter that shows potential. Don’t take what Distribution says about a new product as gospel. Your product may well be brilliantly designed and fill a real need. There’s nothing more frustrating than dropping a bundle on research and development to create a great product, only to hear, “What else you got?” That’s the moment to bring in the reinforcements, and the best reason yet to turn to an experienced consultant.
How many times have you seen a superior product with inferior management? Tragic!