The Value of being Stocked in a Local Store

by | Feb 26, 2021 | How-to & Tips | 392 comments

Why placing your products in local stores increases not only your turnover but also the value of your brand and products: This article is intended to show you all the facets and benefits of partnering with local resellers.

A long-term partnership forms a good basis

Finding your product in a local, owner-operated store has many more advantages than you think. 

If your products are no longer only available in your own online store but have found another point of sale, this means another source of income for you. With this revenue stream, you don’t even have to worry about marketing and selling yourself. With luck, you have created a long-term basis for returning customers to buy your products again. Thus you have created a regular turnover, which runs almost all by itself. 

Right at the beginning, this graphic should make clear to you how important orders – and especially follow-up orders – can be for you. Even if for many brands the one order is the goal, a long-term partnership should always be strived for. 

So, in the best-case scenario, your first orders generated on FAIRLING should result in follow-up orders.

ChillChoc on a table

1. The biggest advantage for you: visibility & marketing

Your biggest advantage, however, is visibility. Whether it’s on the store shelf or in the store window, there will always be customers who remember the name of your brand in order to take a look at your online store. Your product can advertise you, so to speak, simply because it’s on-site. Now compare that to the cost of a billboard in the same location or an influencer collaboration on social media. In this case, the costs would be significantly higher. 

So your product can make so much more of an impact if you display it in an appropriate store than if you have it sitting in your warehouse, for example. 

So, multiply your accessibility!

If you’ve found a store that fits your brand and products exactly, you’ve automatically found another way to reach your target audience. So your product is displayed to the right target group and reaches the right customers without having to explicitly contact your target group. 

In addition, many customers also lack the try-on factor when shopping online. They want to be able to look at and touch the product in order to judge whether they will buy it. This experience is what a physical store can offer your customers. And it may be the deciding factor that your item will be purchased.

ChillChoc on a table

Not only can your end customers become aware of you by placing your product in a local store. Other store owners may also be so excited about your brand that they too would like to add your products to their assortment. You can reach new customer groups – whether it’s Business-to-Customer or Business-to-Business.
In the last case, you can attract more resellers and multiply your brand awareness and sales. Make sure that your store finder is always up to date and shows all stores that sell your products. This will help your customers when they are looking for your products in their area!

Basically, it can be said that the increased visibility and the resulting positive marketing will increase your value by about twice.

For an order of 500 € value of goods, it would thus be a total value of 1000 €.
500 € x 2 = 1000 €.

2. Shop owners trust you and your brand – great for your credibility

 

In principle, it can be assumed that store owners trust the manufacturers and the brand from which they obtain their products. They share your vision and values and stand behind your brand. Shop owners therefore also act as advisors and experts in the event of queries about your products. They are always there when someone wants more information about your products and are ready to help and advise. You can also benefit from listing stores as your resellers: If you indicate on your social media or on your website that you are already represented in some stores, you automatically appear more authentic and credible. 

Basically, you have another force trying to sell your products. Surely, the store owner also has the intention to earn from your products. But the more stores your brand is represented in, the stronger your reselling power is. In this case, you must not underestimate the follow-up orders. Once you have found a partner in a store owner, a long-term trade relationship can develop. Follow-up orders, because, for example, your products sell very well, can also create a possible upsell for you.

Contact with a store can therefore gain a lot of value in the long run.

This increase in value – due to the great trust of store owners in you, your brand, and your products – can be quantified as about 1.4. 

For an order of 500 € value of goods, it would thus be a total value of 700 €.
500 € x 1,4 = 700 €.

3. You form a partnership and receive professional feedback 

Having store owners as your personal representatives and contacts can be very beneficial for you and your product and brand development. Not only do you get direct expert feedback from them, but you also get bundled feedback from your customers at the same time. How is the product generally received in the store? What do customers say who have held the product in their hands? Is there a possible need for improvement? This can lead to innovations and optimizations that you wouldn’t have thought of yourself! Since you most likely don’t get much feedback from your online store, this is a great way to hear your customers’ voices.

Since you can learn so much from this feedback and contacts, and constantly develop your products, this can add 20% to the value of being listed in a store. 

For an order of 500 € value of goods, it would thus be a total value of 600 €.
500 € x 1,2 = 600 €.

ChillChoc on a table

4. Your brand appears more credible

Since we see a lot of online advertising in the last few years, it is difficult to distinguish which brands and products are credible and of high quality, partnerships help enormously. Your products will be validated and approved by external experts, which in turn adds value to your brand and image. For example, if you offer sustainable products and find your reseller in a sustainable store, customers immediately know that they can trust you as a brand because there was some sort of “intermediate test.” This additional confidence factor also increases the value by about 20%. 

For an order of 500 € value of goods, it would thus be a total value of 600 €.
500 € x 1,2 = 600 €.

Basically, it can be summarized that being present in local stores offers a great added value for you. Not only can you increase your sales, but you automatically gain more credibility and trust among your customers. In addition to more end customers, you also have the opportunity to place yourself even more strongly in stores, as other store owners have also become aware of your products. The more stores love your products and want to offer them in their stores, the more you benefit from the larger distribution. 

Finally, the following sample calculation should illustrate the increase in value that your brand and products will gain through being stocked in local stores:

 

If you make a turnover of 100€ value of goods with an order, how much value would be added because your product would be on display in a local store?

ChillChoc on a table

As you can see, FAIRLING is about so much more than just finding a store that sells your products. Partnerships with store owners mean much more than just additional sales. 
So FAIRLING may offer you many more advantages than you knew before!

Would you have thought that? Most founders usually forget that it’s not just about a one-time order and only the monetary value of the sale is important.

Being present in local stores and having your goods displayed there for other customers is a huge advantage for you.
So always try to cultivate your partnerships with merchants to build a long-term relationship!

If you are already looking for resellers for your products, we love to help you find those. Just book a free demo call and we will be very happy to talk with you about your possibilities or answer your questions!

Get more information!

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