RESTAURANT PERSPECTIVES - Tom Kelley and Concept Branding Group

Empty restaurant seats everywhere these days!

We are constantly shocked to see restaurants with the majority of their seats empty...and doing nothing about it!    Is it all ego involved in seeing if you can do everything yourself?

Over the past year restaurants across the US, especially in major cities like Washington, DC have simply shut down.  Just like that.   Belly up.  We know we've reached out, and know other professional services firms have as well.   What is it that makes operators think they can or should just ride it through or that their only option is to close?

No one person has all the answers to rebuilding a brand or generating sales.   Reach out.   The costs of doing nothing far exceed the minimal cost of engaging industry experts to refine your operations' marketing plan.

Restaurant owners...reach out.  And, almost as bad: don't coupon or think you can advertise your way out of slumping sales!   All that does is diminish your brand and eat cash.

Just the way we see it....

A great article suggestion from one of our great clients from THE DRUM: A LOTTA BOTTLE - OFF SALES MARKETING

The Drum - A LOTTA BOTTLE - OFF SALES MARKETING

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Fri 28 Nov 2008

A lotta bottle - off sales marketing

All

The credit crunch might be hitting the licenced trade, but what is bad for the on-trade is actually quite good for the off-trade.

With cash being tight many people are choosing the cheaper option of a night in with a bottle which is paying dividends for off sales marketers.

Despite media coverage of binge drinking, which often imply that consumption rate is spiralling out of control, there has, in fact, been a decline in overall alcohol consumption in the UK in recent times.

Difficult environmental factors, such as the increased costs of alcohol combined with the economic slowdown, the smoking ban, and changes in consumer demands present a challenge for drinks brands – a challenge that the off-trade has not been immune to.

Despite an alarming drop in on-sales over recent months, off-trade sales continued to rise with a 3.8 percent increase in the summer. However, in the most recent figures revealed by the drinks industry, the on-trade witnessed its first fall in sales in over a year, with a six percent drop in the three-month period to September.

A sign of wider economic and social issues, perhaps, but, despite this wobble, the off-trade remains increasingly important as the long-term trend towards home drinking continues, fuelled further by the current recessionary forecasts. As such, this presents a huge opportunity for brands to take their battle for sales to the shop floor. 

“You have to recognise that drinks companies actually do quite well during recessions,” says Campbell Laird of Edinburgh-based design agency Threebrand. “That and the fact that whatever the sector, brands are still having to compete for marketshare – and design plays a significant part in helping companies achieve this.

Silent Sales Person
“Packaging is often seen as the silent sales person, as is ‘in store theatre’. Innovation in packaging design, bottle shapes, label stock, materials, textures and feels all embellish and create awareness, sophistication and most importantly shelf stand out. Identification and distinctiveness have always been two pillars of branding.

“We recently completed a global campaign for Smirnoff, for the latest James Bond film, Quantum of Solace. The product was exactly the same, but sales went up 300 percent in the first week after the campaign was launched.”

TNS research recently highlighted figures that showed people are still buying food and drink, but are ‘trading down’, continues Laird: “This means that consumers are eating and drinking out less and consuming more at home. This trend mirrors the characteristics of the last recession where sales of alcohol for home consumption increased... as did sales of lipstick – both seen as an ‘affordable treat’.”

So, if alcohol remains steadfastly on the shopping lists of the consumer, competition on-shelf among brands remains correspondingly tight.

“This time of year there are many ways of creating brand stand out on cluttered shelves,” says Vaughan Yates of Contagious. “The main standout within this climate seems to be the price reduction stickers below the brands, and less the brand packaging on the shelves. You only have to look at an empty shelf in Tesco or Sainsbury’s and you can guarantee there is a discount sticker offering a price reduction below the shelf.”

Of course, price driven offers will always be the purchasing motivators for some consumers, but not all, says Craig Mackinlay, founder of Breeze.

“Even in the toughest economic environment, there are those that prosper and for whom purchasing what they desire will remain a constant – whether they are motivated by a certain badge or logo, product promise or innovation. To create standout on shelf, the product’s packaging needs to be true to the product itself. It must reflect that particular brand’s values whether it is about quality, rarity, innovation or price.

“For consumers not driven by price, their purchasing decision is more emotive and the packaging has to engage with them on that level. It stands to reason also   that a quality product should be given the best packaging so that it really does stand out on a busy shelf.”

Price related promotions now rule the take-home market, but getting cut-through amongst the clutter is increasingly difficult, claims Derek Sneddon of Pocket Rocket. “If you can negotiate good shelf facing, clever design can really push your brand out from the crowd.

Price Driven
“If a price-driven offer is concerning because it may devalue the brand, it is worth remembering that about 30 percent of alcohol purchases during this festive period are specifically for gifting. So the other way to gain standout is to actually turn up the premium cues on the brand and consider anything from a GWP [gift with purchase] or exclusive seasonal packaging. Offer a relevant package during the Christmas period and it is a very compelling proposition.

“If you can convince consumers that your brand is worth paying more for, you’re half way there. Powerful advertising works, and it can get your brand to a place where consumers feel comfortable with you.

“Packaging then has to live up to these expectations and deliver something special. It is not enough to merely garnish your product. What you convey is part of the whole brand experience and it has to fit with every other consumer touchpoint you have.”

This is a point that Yates agrees with: “To establish a brand image you have to look at packaging, sponsorship, promotions and advertising. It’s a simple formula, and if you have a clear strategy, a clear target market and you work with the right people, you can grow your brand.

“We are seeing continued investment by our drinks clients across the board. In October we worked with the Beefeater team to launch a new super-premium gin, Beefeater 24 in London. You do not launch a new brand in this climate unless you are confident about the future. Gin, for example, is still an undervalued sector at the premium end, compared to vodkas. On average you may pay up to £20 for a super premium gin, where the average price for a premium vodka can be twice as much. Considering the complexity of gin compared to vodka, gin is still great value.

“We are also noticing more brands investing in their environments. We are currently working on five brand homes for some of the world’s leading spirit companies. Visitor education and entertainment leads to word of mouth communication which is key to helping a brand grow.”

Threebrand’s Laird is also noticing a number of key trends developing in the drinks trade.

Confidence
The first is ‘premiumisation’. “With people aspiring to a better lifestyle, and while the current recession may suggest consumer confidence is low and consumers reigning back, the reality is that while sales of houses, cars, holidays and other expensive items are being hit, affordable personal treats or gifts for friends – such as gifted alcohol – are doing very well,” he says.

The second is the growth in BRIC markets, these are the markets of Brazil, Russia, India and China. “While these areas provide big opportunities for brands, they need to understand the market dynamics of these differing markets,” Laird adds.

However, at the end of the day, the current economic climate is really unchartered territory, says Craig Mackinlay. “Some politicians have claimed that the darkest period for 60 years is right round the next corner but society has changed so much since that time that purchasing behaviours may be different too.

“There are other social factors other than money which dictate where and how consumers purchase alcohol (eg drink driving, smoking ban etc). It would seem logical that people would tend to drink more at home in tough economic times... but for some, escaping out of the house to go to the pub is what makes life worth living.”

Kelley responds to Nation's Restaurant News lead article

Naton's Restaurant News

 

To the editor,

 

We enjoyed your front page story (Restaurants don't discount deals' benefits, November 10, 2008) and couldn't agree more that couponing, even in hard times, does considerable damage to both short and long term brand integrity.

 

What we aren't seeing much of these days is marketing to guests when they are in the restaurant  -- via "from the chef" /amous bouche taste plates of signature appetizers or entrees, especially to encourage a return at a different meal time.  Of course, the challenge is to get guests into the restaurant first.  We would suggest, though, that when guests receive the unexpected, they will remember and return, either for something they've sampled, or for the next unexpected treat.

 

Key here is to do this on a consistent basis and serve food that is fresh and tasty, not just yesterday's left overs.

 

In-restaurant marketing works.

 

Sincerely,

 

 

Tom Kelley

Managing Partner

Concept Branding Group

6 steps to profitability -- from the Financial TImes

Let’s meet when it’s over

By Stefan Stern

Published: November 5 2008 20:28 | Last updated: November 5 2008 20:28

It is here. The recession that many hoped would never come, or prayed they would not have to deal with, has arrived. Others can carry on debating how and why it has happened. Business leaders will want to know what they need to do now.

The usual cycle of responses to a huge shock or upset – denial, anger, bargaining, depression and finally acceptance – is of limited use. Cut straight to acceptance, and then action. But what kind?

In downturns, it is extraordinary how quickly managers rediscover business virtues that appeared to have been forgotten in the good times. Today the cry is “preserve cash”. Cut unnecessary entertaining. End business class travel and five-star accommodation. Get out of the taxi and back on the bus.

First steps on the
road back to profit

● Preserve cash. Not all expenditure can be halted but tougher tests need to be put in place at once to prevent waste.

● Reality check. How bad could things get, really? Plan for the worst, even while hoping for the best.

● Differentiate. Tap into unexploited revenue streams by thinking afresh about your existing customer base. They are not all the same. New customer segments might offer new profit opportunities.

● Innovate. Just working harder at what you are already doing probably won’t produce a different outcome. Do something different. It has got to be worth a try.

● Lead. This is no time to hide
in the bunker. Be visible, upbeat, energetic. If you can’t be, get out of the way and let someone else take over.

● Don’t give up. Take a pay cut. Freeze all new hires. Go to a three-day week. Grant unpaid holiday. There are many ways to keep the bankers from the door. Just keep the show on the road. Something might turn up

But few businesses shrink their way to success. So, even now, smart companies will be trying to plot a path back to profitability.

In a new paper for the Boston Consulting Group, David Rhodes, Daniel Stelter and Shubh Saumya argue that well-run companies can be ready to make big, recession-combating structural changes only four to six weeks after beginning their analysis of the situation.

Managers need to start by considering the worst-case scenarios. “Even for many still-healthy companies, a drop in sales of around 20 per cent is sufficient to turn profits into huge losses and to send cash flow deep into the red,” they write.

Once the top team has grasped the possible severity of the situation, there are four priorities: “To protect the financial fundamentals, to identify ways to protect the existing business, to manage for the long term and optimise the relative valuation of the company.”

If you do not already have one, produce a weekly report on your cash position, BCG says. To protect the existing business, consider your pricing points. In the 1930s companies innovated around cheaper product ranges. The McDonald’s $1 menu or Danone’s Eco-Pack yoghurt in France are current examples of this. General Electric first developed its financing business in the Depression, helping customers purchase refrigerators with credit.

For the long term, BCG echoes the advice offered by Intel’s Andy Grove. Downturns are the best time to invest in research and development and product innovation, he used to say. Boldness now will help create new products that are ready for the market when it starts to recover.

With asset prices so low, acquisitions should also be possible, at least for those companies with relatively healthy balance sheets. “It’s time to go shopping,” Caroline Firstbrook, Accenture’s European head of strategy consulting, told a recent “dealing with the downturn” seminar in London.

Getting some of these core challenges right – pricing, products and M&A – is essential. But perhaps companies also need to grasp something more fundamental about the way the rules for business will change during and after this recession. Umair Haque, director of the Havas Media Lab, a consultancy, recently wrote a provocative article for Business Week magazine which declared that “traditional recession strategies are doomed to fail this time”.

He argued that conventional business models – big industrial beasts pushing out more and more product – are doomed. He had Starbucks in his sights: “Starbucks tried to grow by selling us more junk we don’t need – music, mugs and mouse pads,” he wrote.

“What do we need in the 21st century – not just as brain-dead consumers, but as global citizens?” Mr Haque continued. “We need opportunities to grow and amplify our capabilities. For Starbucks that might mean, instead of hawking mugs and chocolates, training baristas to teach classes in coffee-making, letting communities use Starbucks as a venue for local government, or, at the limit, training local suppliers from developing countries as baristas in developed ones. How cool would that be? Very.” (But how profitable? It is not quite so clear.)

That critique may sound a little too flaky to business leaders who want quick wins now, simply to survive. For more practical ideas consider Adrian Slywotzky and Richard Wise’s sensibly titled book How to Grow When Markets Don’t

The authors have some simple suggestions that might just work. They ask a basic but important question: are all your customers really the same? On closer inspection you may have different customer segments lurking there that need to be served (and charged) differently. This offers the possibility of boosting revenues.

Do you have any special (and lucrative) customer relationships? Perhaps you are adopting specific approaches with these customers that could be copied and profitably introduced elsewhere. And are you really charging the right price for some of your valuable goods and services? Maybe there is concealed value in a bundle of services that are currently being offered at one price. Budget airlines have found a large number of ways to charge more for goods and services which customers used to enjoy for free. It can be done.

Finally, there is you, the boss. What about your own personal recession-beating strategy? Times like these will place enormous pressure on business leaders. Physical and mental health are valuable assets. You will need to be at your fittest if your leadership is not to suffer.

Peter Shaw and Steve Wigzell, executive coaches at the Praesta consultancy, have written a guide for senior managers leading teams through tough trading conditions. Leaders should understand how closely their behaviour will be scrutinised. “As a leader, be conscious that everything about you gives a message to your organisation; not only your words, but your posture, facial expression, tone of voice and appearance,” they write.

“The perception of your mood will spread like wildfire and will often become distorted through gossip. When one CEO asked his chairman what was the single most important thing he should be doing, the reply was: ‘Smile’.”

Smiling will not be enough to steer your business through the next few months. And as the Praesta coaches point out, when you are highly visible to others keeping up a cheerful act is exhausting.

The businesses that do make it through to calmer, post-downturn times will have basic balance sheet strength. They will stem all unnecessary outflows of cash. They will price their goods and services keenly, but also imaginatively. And they will continue to plan for the future, remembering that all downturns come to an end.

Simple, really. What is everyone getting so worried about?

Copyright The Financial Times Limited 2008

Concept Branding Group seeks to add to team to excel at new and prospective client service

Concept Branding Group (http://www.conceptbrandinggroup.com), with offices in New England, Washington, DC and Montreal, seeks to add to our seasoned business consulting team.

We seek a former GM or independent restaurant operator or a former restaurant sales rep. to market our new product and our entire suite of brand services for retail and small business:
http://www.restaurantTuneUp.com in RI, MA and CT.

Work with our 4 person team based in Kennebunkport, ME.

Please forward resume and how you believe you can add value to our growing firm.

Potential for income growth is substantial. Only self starters and proven business developers will succeed.

We look forward to your inquiry (info@conceptbrandinggroup.com)

Skills leaders need in a crisis -- a video from Wall Street Journal

Interview with head of CEO search at Russell Reynolds

Skills Leaders Need in a Crisis 10/27/2008

WSJ's Erin White speaks with Clarke Murphy, who heads the CEO search practice for Russell Reynolds, about the leadership skills necessary to manage through tough times. (Oct. 27)

Concept Branding Group Managing Partner Tom Kelley interviewed by San Francisco Business Times on current retail environment

October 24, 2008 SAN FRANCISCO BUSINESS TIMES

Mervyns LLC will begin liquidating merchandise at its remaining 149 stores about Nov. 1 as it prepares to shut down operations a few months short of its 60th anniversary.

The Hayward-based department store chain, which should close its door by early January, was not just another retail victim of the current economic crisis, according to industry observers. They contend poor management and a four-year-old purchase deal by an investment consortium that left it paying exorbitantly expensive leases on its stores also contributed to its failure.

In September, Mervyns LLC sued the investors who purchased the retail chain for $1.2 billion in 2004 from Target Corp. -- Sun Capital Partners Inc., Cerberus Capital Management LP and Lubert-Adler and Klaff Partners LP -- alleging that the investors and Target devised complex real estate transactions in order to gain control of the retailer’s stores, then lease them back at “substantially increased rates.”

It sought the return of $58 million in transaction fees and other damages from the investors and Target, as well as a court order permitting Mervyns to reclaim its real estate.

Roy Berces, group manager of communications for Mervyns, said the original deal struck by the investors and Target was instrumental in the company having to file for Chapter 11 bankruptcy protection in July.

But the suit and a $465 million line of credit from a lender group led by Wachovia Capital Finance Corp. extended last summer proved too little, too late to save the struggling chain, which which opened its first store in San Lorenzo in 1949.

“In order to succeed, a retailer cannot have too much debt or too much overhead,” said George Whalin, president of Retail Management Consultants in Carlsbad. “Certainly not so much that you can’t buy merchandise, as happened to Mervyns.”

Whalin said the real estate deal devised by the investment consortium is what eventually doomed the value-oriented retailer, which he said should have been faring reasonably well despite the slumping economy. Even in a turnaround situation like Mervyns, Whalin said “fairly deep-pocketed investors” find a way to make things work.

“The last five or six months have been tough on all retailers, but discounters and value-oriented companies are doing OK,” Whalin said. “Mervyns should have been in that group, if it wasn’t for the usurous rents it was being charged for its stores. Someone at these investment companies had to have known turning Mervyns into a cash cow was not going to lead to a good outcome.”

Tom Kelley, a former Mervyns executive who now runs Concept Branding Group, a retail consultancy based in Washington D.C., took an even harsher tone.

“During the past few years, there were no real indications that senior managers were making any of the right moves,” Kelley said of the revolving door of CEOs at Mervyns LLC -- four in four years. “If anyone tries to blame this on the economy, shame on them. It’s a sad story when leadership is so ineffective.”

Kelley criticized the current CEO, John Goodman, former manager of the successful Dockers apparel line for Levi Stauss & Co. of San Francisco, who took the top Mervyns jobs only last April.  “When he got involved in this and saw this complex web of buying properties and then leasing them back (to Mervyns) at exorbitant rates, he should have walked away from it,” he said. “Instead, he kept saying for the past six months (the company) was going to survive, knowing that the store (lease costs) were impossible to meet.”

Kelley said even Vanessa Castagna, brought in by the investors in early 2005 because she was highly regarded in the retail industry for having led a turnaround at J.C. Penney Corp. Inc., could not repeat her success at Mervyns because of the handicaps. Castagna abruptly stepped down in early 2007.

Even before it was saddled with high lease costs, Kelley said “neglect of the Mervyns’ brand” by former parent Target, which owned the East Bay retailer for 26 years, began the retailer’s slow decline.

“They got away from keeping the brand distinctive and keeping the company involved in the community,” he said. “Once a retailer loses touch with its community, its chances of success are very slim.”

Mervyns will use an outside professional services firm to help it liquidate its merchandise.

Goodman, who was not available for comment, said in a company press release he was confident the going-out-of-business sale would “drive significant traffic to our stores.”

“We are disappointed with this outcome but (Mervyns’) declining liquidity position and the extremely challenging retail environment, together with the fact we have exhausted all other possibilities, requires that we take this action.”

Berces would not comment on how many people will lose their jobs, or whether severance pay or job-search assistance will be made available to employees.

Copywright, San Francisco Business Times

Restaurant Tune Up Offers Insights on Increasing Restaurant Customer Counts

Restaurant Tune Up News Wire release

Restaurant Tune Up Offers Insights on Increasing Restaurant Customer Counts

Seasoned restaurant operators offer one-time or ongoing review and recommendation on brand awareness, marketing and front and back of the house operations.

Bretton Woods, NH, October 28, 2008 --(PR.com)-- Premiering at the New Hampshire Restaurant & Lodging Association Show today, www.restaurantTuneUp.com is receiving favorable reviews and comments from restaurant operators that finally realized that giving their operations a once or twice a year tune up isn’t just enlightening, but it really does add considerably to the bottom line.

For a very minimal investment, a team of operators with 160 collective years of expertise running casual, fast casual, and fine dining restaurants, will review every aspect of front and back of the house operations, from inventory control, menu development, in-store promotions, staffing, logo updates, marketing and community involvement – all leading to a set of findings and tangible recommendations for improvement.

“As a former restaurant owner I know I was so close to everyday operations that I never really took a hard look on a regular basis on how we were doing from a new customer’s perspective,” commented Ben Williams, Senior Consultant at Concept Branding Group, who is leading the roll out of the program throughout the Northeast. Many times getting a leg up on an upcoming New Year provides operators with the tools they need to begin a new year stronger than ever.

“It makes total sense. You tune up your car several times a year. Your business needs at least the same amount of attention to keep traffic flowing into your restaurant,” Williams added.

www.restaurantTuneUp.com also offers a more extensive restaurant turn around package for restaurant operators facing larger challenges. With an ever increasing number of competitors, it’s often necessary to refine a restaurant unit or small chain brand to better reflect the authentic nature of the core brand.

In today’s challenging economy there is no better time to have an unvarnished and fresh look at your livelihood. Owner-operators can’t do it all. Before any challenge becomes too much to handle, let seasoned operators take a hard look at all you do.

“Many folks compare our approach to Gordon Ramsay’s Kitchen Nightmares show (http://www.fox.com/kitchennightmares) , yet without all the screaming and yelling,” Williams joked. “While we don’t do our work on camera, the review is similarly as intense and revealing.”

For more information on how www.restaurantTuneUp.com can reinvigorate your restaurant’s sales and volumes, contact Ben Williams at: BenWilliams@conceptbrandinggroup.com . Also, contact your state restaurant association for possible member discounts.

Contact: Ben Williams, 603-662-7557 or BenWilliams@conceptbrandinggroup.com

###

Contact Information

Concept Branding Group Tom Kelley 2023445043 tomkelley@conceptbrandinggroup.com http://www.conceptbrandinggroup.com

Attached Files

Restaurant Tune Up offers insights on increasing restaurant customer counts Bretton Woods, NH, October 27, 2008 – Premiering at the New Hampshire Restaurant & Lodging Association Show today, www.restaurantTuneUp.com is receiving favorable reviews and comments from restaurant operators that finally realized that giving their operations a once or twice a year tune up isn’t ju Filename: RestTuneUpRelease-2.pdf

Concept Branding Group announces www.OperationsTuneUp.com for small businesses, retailers, realtors -- any business looking to improve operations

WWW.OperationsTuneUp.com

Unit Operations and Concept Refinement

Goal: Improvement of operations, development of a refined formula to reach expanded demographics/sales and continued brand refinement in local markets

Every operator must explore new customer bases. We provide concrete suggestions to expand the brand's appeal to an expanded demographic mix.

For our food manufacturing clients, especially start ups, from our friends at Entrepreneur.com

ENTREPRENEUR.COM - From Storeroom to Store Shelves full article

From Storeroom to Store Shelves

Use these 9 tips to craft a pitch that will have retailers filling out purchase orders.

By Jennifer Grzeskowiak    |   October 13, 2008

Neil Reilly, 46, a former commodities trader, used to walk the streets of Manhattan after the markets closed, trying to pitch his organic, kosher dog treats to retailers. Now Manchester Center, Vt.-based Wagatha's, co-owned by Reilly and Norman Levitz, 52, is projecting $1 million in sales for 2009. Reilly, like other entrepreneurs, learned that getting a product onto store shelves takes patience, persistence and a strong pitch.

Even connecting at first with a buyer for a larger retailer can take time and multiple phone calls. If cost allows, send your product to potential buyers before calling. When you do make contact, they will already have your product in hand.

Once you have a meeting set up, consider these nine tips for getting your product into stores and the hands of customers.

1. Address how your product compares to similar ones the retailer already carries. Adding a new vendor can be costly for a retailer. Buyers are taking a risk by agreeing to dedicate limited shelf space to a new product. Compel them to take a chance on your product by showing why it's better. Maybe your headphones have exceptional sound quality, a higher-than-average margin and come in five different colors.
2. Discuss how you and your product fit in with the retailer's culture. "The people behind the product and their mission are just as important as the product itself," says Harvinder Singh, a regional local products forager for Whole Foods. "We look for products that are made with high quality, organic ingredients, have a low carbon footprint and are socially just, meaning the growers and producers are paid fairly and treated well." Also consider the retailer's image: Is it high end or budget conscious? Trendy or traditional?
3. Demonstrate demand for your product. Retailers, especially large ones, often calculate revenue per square inch of shelf space. They want to know before they agree to carry your product that there's going to be demand for it. Tell them where else your product is carried or how many units you've sold through your website. Maybe a local boutique only bought 20 of your necklaces in an initial order but sold out of them in three days. Also, know your market. This includes the age, gender, income and interests of your target customer. Compare how your market overlaps with that of the retailer.
4. Show your passion. "If it's a quality product, you just have to tell your story," Reilly says. "You have to be really honest and believe in yourself." As part of his pitch to retailers, Reilly often will eat his dog biscuits, which are made in Wagatha's own facility.
5. Present a finished product, including packaging. Retailers want to know everything about your product. If you can't have your packaging ready for the pitch meeting, at least know what it's going to look like. Include a logo and artwork, and what materials you're going to use. Keep in mind that some retailers will be looking for recyclable packaging. Reilly says that some home stores and hotels he's pitched his dog treats to have been more interested in the packaging and what the product is going to look like on the shelves.
6. Address how your product will fare in difficult economic times. If your price point is comparable to or higher than your competition's, focus on why people still need or will want your product. Retailers, including Whole Foods, are focused on finding the next big trends, Singh says.
7. Discuss your ability to deliver. Buyers often are given a set amount of money to work with. If you tie up their funds and fail to deliver your product on time, you are wasting their shelf space and costing them money. Be honest with yourself and the retailer about how much of your product you can deliver and when. Failing to deliver on time also could result in hefty fines.
8. Be prepared to discuss your business plan. Major retailers in particular will want to know that you can continue to deliver your product as promised and that you will be professional to work with. "I love people with ideas and passion, but there's a whole other side to it," Singh says.
9. Don't exceed the allotted time, and leave enough time for questions. If buyers have important questions about the viability of your product and don't get to ask them, they might go with a surer thing.

Be strategic about the retailers you meet with. Major chains like Target, Best Buy and Costco may seem like a gold mine. But first realistically evaluate your ability to supply them with the amount of product they need. Consider starting smaller to gauge demand for your product. Also look for companies with programs supportive of startups. Whole Foods, for instance, has a Local Producer Loan Program for small, local producers.

Also consider hiring a manufacturer's representative or agent, someone to do most of the legwork for you and who doesn't get paid until your product gets placed.

"Go out and hit the street," Reilly says. "Just make sure you believe in your product."