tv Your Business MSNBC November 19, 2011 5:30am-6:00am EST
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hi there, everyone. i'm j.j. ramberg. welcome to "your business" where we give you tips and advice to help your business grow. many of you asked us ha it takes to get your products on the shelves of a major retailer. we are looking at that process from the eyes of a company in california. from the beginning, they pursued the largest retailers to get them to say yes.
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>> they started out with 16 items in our store. they now have over 50. >> it's an incredible brand. we are excited to have them. they are saying yes to yes to inc. >> we brought it inside the stores and kept it online as well. >> the response was phenomenal. over time, the line has grown dramatically. >> wall green's vice president and target vice president say their respective customers are big fans of yes to carrots, yes to cucumbers, yes to tomatoes and yes to blueberries. >> it hit the benchmarks. it was the customer following he developed. >> they are innovative. they have been able to answer the call. they don't sit still for one
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moment. >> co-founder of san francisco based yes to says getting his organic skin and hair products was a coup. his reaction was something like this. >> can't say it on television, unfortunately. it was oh, beep beep beep. it was incredible. >> they decided to approach larger retailers despite their humble beginnings. >> we started with six products in 16 stores as a test to see how it would go and it exploded from that. >> with a staff of 25, working with five american production facilities. they currently supply products to 28,000 stores worldwide. he explains how the company was able to make an impression so quickly. >> we didn't know any better. at the time, all these retailers are setting up natural beauty sets in the stores.
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the timing was right. we wanted to make an impact as new brand. >> getting to the point of pitching to perspective partners was somewhat of a challenge. >> we had to scramble. it was hard. we had a rough plan. we didn't realize it would happen so quickly. >> they got their first break after sinking plenty of time and money into trade shows. with help from a contact, yes to got a 30 minute pitch meeting at wall greens that turned into a few hours. >> we wanted a presentation that had no questions at the end of it. the only question we wanted was when can we have it. >> answering questions wasn't easy. retailers always want to know about a vendors potential. >> at the end of the day, they want to know, are you bringing incremental people to my store and how are you going make sure they buy your product versus somebody else? >> after an online trial and
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offer of shelf space at thousands of stores, they needed to ramp up production and fast. >> this was black or white for us. we didn't see the opportunity to fail. we went to ten different manufacturers to get bottles done on time, move other manufacturers to the back of the line. somehow we made it happen. >> that was the trickier part of working with them. there's little room for error when it comes to delivering goods z. >> they understand that you are not the same size as the larger guys and you might make a few faux pas. they have to protect thundershower customer. you can't be late. if you miss your window by 15 minutes you can get fined and potentially, over time, lose your shelf space. >> yes to used a different approach when introducing itself to target. >> we went through a broker.
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the broker adds a certain level of credibility to what you are doing. if you meet with a broker and they tell you you are not ready, you probably are not ready. >> at that point, they were better prepared. they had grown to satisfied increased demand. he learned that each vendor gets its own deal. they are never the same. >> the relationship you have with your mom is different than you have with your best friend. it's the same thing here. >> it's important to have open lines of communications, that we understand what they aare expec from us and what we expect from them. >> they must push to keep partnerships thriving. you always have to think about money. >> people believe you get into 5,000 to 8,000 stores you have multimillion orders and you are made. you are done. unfortunately, you are putting all that money back in.
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>> despite their success, he may have knocked off more than he could chew. he may have tried to sell too much at first. >> sometimes you can sell the car, you don't need the sunroof and power windows. get the core. get your core in. if it's one product or five products. >> small business owners like him may want to rethink their major league plans until they get their minor league plans in order. >> if i had my day over, i don't know whether i would say let's go straight into an online trial. we didn't know what products were going to do better or worse. by starting small, it gives you an advantage to go into the larger retailers to make sure you do get it right. this is just one company's story about how it landed deals with major retailers.
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both executives said, every business owner has a unique experience. let's bring in the board of directors. karen waxman is a rep who is president of product for profit. she teaches entrepreneurs how to market their products to major retailers. a new company that designs creative team building experiences. and the author of "the toilet paper entrepreneur" a company that provides online behavioral marketing services. great to see you all. congratulations since the last time you were on you launched a company. >> thank you. >> this is a question we, i have gotten it so many times over the past six years of how do i get my product into one of these companies. do you suggest people go about it as an individual, go in themselves or as a broker? we saw them both.
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>> it's a good question. at the end of the day, it's important you generate revenue. in my case, a lot of times i meet product entrepreneurs who are struggling because they went out to find a sales rep, a broker and sometimes they do awesome. when they do, it's fantastic and they help you get the products in the stores. sometimes when you are going out to get the help and they don't help you, you are stuck. what you want to do is get your products into stores. it's where i come in. i teach how to get into retails. >> what do you tell someone? i'm j.j. and i made a new hair clip and i want it in target. what do i do? >> there's some things. it's a tough question. it depends on where they are in the process. some people are really ready to go. they have set up packaging, they have done all the work they needed. they have the manufacturing in place and so forth. if you are really, really ready
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to go in that case, i recommend going to the buyer directly. i can tell you approaches of how to get their name and contact information. honestly, i would reach out to the buyer, providing them all the information they need. they need information related to what your product looks like, the packaging, the pricing and so forth. >> i'm going to stop you for a second. you two are amazing networks and incredibly bold going to people. how do you get somebody to answer you? the guy from target has a million people calling him. >> you had me aamazing. we're done. the key is, and the lesson was start small. they started with six items. they have to build a following. a lot of people try to go too big too fast. start small. second, no american. it's expensive than offshores, but you can get the items and
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material in quickly. you can get the product quickly and respond quickly. you have to be tenacious. >> how do you get them to call you back? this guy did it through a contact. >> we have several members of ladies who launch who network with each other. find out who are the key buyers. if you don't find them online and you can go to the store and ask around. it's purely just about being creative and creating a relationship with people in store, identifying the buyer, calling them, e-mailing them, letting them know about your product, be willing to do a demo and demonstrate proof of concept. to exchange information with other people who sell products in that store. >> go into target and you have a noncompetitive product. they can say oh, my friend makes this, you should show it or look at it or show the buyer in
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charge of the department. it's about relationships. if you get in there and get a meeting, what kind of questions should you be prepared to ask -- answer? >> they want to see your product. they want to see the packages. they want to know if you have sold it anywhere. have you spent time, you know, what's your volume you are doing so far. what they want to know at the end of the day is they are working with somebody who is serious about getting their products in the stores. the great thing about the interview is he thought it through. he put down, wrote down every single possible question the retail buyer could ask them and prepared in advance. you want to show you are serious, you are direct and know what you are doing. >> are they going ask to look at your financial statements or is that later down the road? >> later down the road. they want to know is your product cool? do they think it's going to
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sell? ultima ultimately, what have you done and how are you going to help them sell the product. they want to know you are partnering with them. >> demonstrate that you have an audien audience, a following. demonstrating online sales is a great way to start. if you are not in stores, show them what's online. >> it's like pitching an investor. >> there's a secret trick. look at the products they already sell and yours compliments. >> great. thank you so much. karen, thanks for joining us. >> thank you. andy and rachel berliner created a food in 1987 and named it after their daughter, amy. despite competition, amy's kitchen is the first nationwide. they are reading feedback, no yelling rule and running a
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family business in this learning from the pros. ♪ >> i think one of the reasons we have continued to be successful and actually are larger in proportion to competitors than we ever have been at this stage is because we have stayed a small company in attitude, philosophy and care for the quality and taste of our product. if this is a long term thing for you or you might want to turn it into a family business, own it yourself, even if you have to grow smaller. our goal is to have a small business. her mother used to say, you can't -- this company can't succeed. this is wrong and this is wrong. i said you know, big companies are the same way. everybody makes mistakes. >> you have to make the mistakes in the beginning. businesses are more forgiving
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than you think. all businesses make mistakes. you just do, you make mistakes. it's not the end of the world. >> management of the business, the day-to-day management as soon as possible. entrepreneurship, they are not necessarily good day-to-day managers. if you are worried about how much salt you are putting in or how is this machine working and these little things then creativity sometimes doesn't happen. when we started the business, right away, we started getting customers letters of appreciation. when we started it, we didn't make any money. we didn't lose money, but we didn't make money. when my husband, we would have a hard day and say oh, should we keep on? these letters from our customers, i would read them.
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that kept us going. people liked our food. they wanted us to continue. i suggest the owners read the letters, not just have a customer service person. it's a way to be in touch with your customer. i find out what products people want. they give me suggestions. they like something. could you make more of this, pizza or soups. they tell us, basically. >> well, in the early years and still, it's always kind of a struggle to a certain sense to keep amy's completely gentle, kind place. i'm a sensitive person myself. i don't like to be yelled at. i figure no one that works for me should have to be publicly scolded or yelled at or made to feel bad. everybody does their best. talk about things.
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it's become a company culture. >> still ahead, we answer your small business questions. including one about getting your product into a high end department store. at night, he's a musician in demand for groups like the rolling stones. by day, he runs a successful green business. chuck leavell shares his secrets for small business success. smal l bu sinesses are the smal lifeblood of our communities. absolutely crucial. vital. they make it unique and they make you happy to live where you live. brings a little flair to the towns that we have. on november 26th you can make a huge impact by shopping small on small business saturday. one purchase...
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one purchase is all it takes. pledge to shop small on small business saturday, it will help support your community. and that is a big deal. it's pretty big. so, pick your favorite local business... and join the movement. i pledge to shop small at big top candy shop. at juno baby store... allen's boots... samy's camera... tag's hardware. you don't have to buy the whole store. make the pledge to shop small. please. on small business saturday. one of our next guests says were it not for the resources of wood, the piano would not exist. it should come as no surprise
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tree farming strikes a chord. chuck leavell is a piano player with the distinction of being a member of two rock and roll bands. he's a pianist for the stones. he doubles as an entrepreneur and environment list. he's co-founder of the environmental news website, the mother nature network. he's author of "growing a better america, smart, strong and stable" joel is here with us, too. thanks for joining us. this is the week for us. green is universal. we are talking of all the things to do to be green. we have a lot of small businesses saying i want to be green, what can i do besides change my lightbulb. i want to get to the points you told me. set higher standards.
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higher than what? >> well, all companies of any size are being scrutinized more in terms of their environmental practices. if you position yourself as a green company, you can multiply that by three or four. so, you need to make very sure that the practices you are following and the way you run your business are transparent and that you are doing the right thing. >> right. >> somebody is looking at you and they are going to check it. >> even to the littlest thing like are you wasting people in your printer. >> it's the little things, especially in a small business. >> then, provide a product or service that saves money, not the planet. we talk about this all the time. just because you are green or socially responsible, people aren't going to care if they can get something cheaper or better somewhere else. >> it has to be profitable and good for the consumer.
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hopefully lower cost. it has to make economic sense. i think we all realize that. i think former president clinton said we'll tackle climate change when it's good business to do so. when looking at any environmental matter, products or services, it needs to be profitable and a value for the consumer. >> people think green is going to be expensive. that's not the case? >> no, the paint we are talking about now is a major reason why green has grown as rapidly as it has. when it was more expensive and good for the planet, it had a very limited interest. when it became good for interest is when it really took off. when you ship stuff by more fuel efficient means, you save money. when you package it in a certain way, higher margins. that's when you launch it in a big way. >> we talked about this a second
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ago. don't think just because you are green, people are going to come flocking. >> you have to walk the talk. you have to show people what you are doing. you have to be transparent, invite people in. this is what we are doing to save energy and materials. you know, to be more energy efficient or whatever the case may be. you have to walk the talk. >> you have to be honest about that. to your first point, there's going to be higher scrutiny on you. don't try to cover it up. be honest and say you are working on it. >> right. don't feel like you can save the world in one swoop. take baby steps and do little things to save energy and your business. that will take you along the path of sustainability. again, you don't have to do it all in a day. take your time. learn as you go. that's another thing. as you take your time and develop your business, you find other ways to improve envir
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environme environmentally. >> partnerships are key. you have partnerships together. you have a few partnerships with your company. >> partnerships are important whether partnering with people that are suppliers, your customers. you know, i give a speech from time-to-time called stewardship where i talk about the importance of being a good steward. for me, it's a steward of the land. it's not exclusive to that. you have to be a good steward to your business. whether we are talking land, business, whatever, you need partnerships. you can't do it alone. if you reach out to others and find strengths, the partnerships come to fruition. >> i applaud you for what you are doing. thanks for giving us insight. is it a little too easy for your mind to start wandering at work? here are the top five office
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distractions you should avoid to keep productivity up. first, noise. low level sounds and open style offices can be a huge distraction. keep loud appliances like coffee machines away from the work space. room temperature. too cold or too hot can lead to low productivity. keep it around 74 degrees. three, tech intrusion. nearly 60% of work interruptions come from the internet, checking e-mail, social media sites. it can help with coordination among employees but are distracting. four, office seating. chairs that aren't adjustable can cause sore backs. uncomfortable workers are less productive. five, your space. the space around your workstation can affect your productivity and the style of work you accomplish. color, light and ceiling height change the way we think.
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it's time to answer some of "your business" questions. stella and mike are here with us once again. the first question is about high end retailers. >> i want to put my box in high end retail like neiman marcus. what would be my strategy as a small business and home business to go that far. >> it's a good question. we are talking about getting your brand in a bigger brand store. how do you do it? >> you have to know what they represent as an entity and identity. when you bring your purse line in, it has to identify their identity. you sell in a trunk store to prove it will sell in their stores. >> be with the customers they are attracting. your brand has to reflect thear demographic. the pricing on your website
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makes sense for the retailer you are about to enter. if they are going to sell their bags in their stores, does your price point match up with theirs? is it lower? are they competing with you? be prepared to let them have the spotlight in terms of selling your product. >> does the idea that it's a home business, does that matter? >> i wouldn't describe it as a home business, a boutique, handmade, not home. >> i have a sharp looking website. >> let's move on to the next question. it's about getting investors. >> for a young entrepreneur, how and at what point do you decide whether you should boot strap, seek out a venture capitalist or an angel investor. >> boot strap. that's my answer. what about you guys? >> i'm all about boot strapping. many people think they need money and investors. how much do you need? what do you need it for?
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how long do you need until you need it. stretch out the amount of time that you are producing your own product, creating it yourself. it builds equity in your company. that impresses investors once you get to the point you need them. >> not just boot strap, freaking boot strap. it forces discipline. you have to form a good, strong, solid business on the pennies you have. boot strap, boot strap, boot strap. let them come to you later down the road. >> you would be surprised at the solutions you think of when you don't have the money. >> we were talking about this. i worked at a company in the late '90s, venture funded. people were spending so much money on wasteful stuff because we all had it. you know, then the bubble crash and suddenly you get creative marketing campaigns that cost almost nothing. thank you for the advice. it was fantastic. if you have a question for our
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experts, go to our website. the address is openforum.com/yourbusiness. hit the ask the show link to submit a question. again, openforum.com/yourbusiness or remail your questions and comments. the address is yourbusiness@msnbc.com. are you looking for some extra help this holiday season? check out our website of the week. flexjobs.com connects employers with workers looking for part time, flexible and virtual jobs. you can search nationally and internationally for the best candidates. you can post unlimited numbers. job seeker haves to pay to use the site. to learn more, click on our website. openforum.com/yourbusiness. you'll find all of today's comments.
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don't forget to become a fan of the show on facebook. we love getting your feedback. you can follow us on twitter@msnbc your biz. next week, small business saturday and the effort to get customers to buy local. >> the buy local movement is when you buy local, the money stays in the community. it's better for the local community to shop with small, independent vendors. >> we go to austin,texas where they work with a local distributor to get residents to patronize their small businesses. until then, i'm j.j. rack berg. remember, we make your business our business. smal l bu sinesses are the smal lifeblood of our communities. on november 26th you can make a huge impact by shopping small
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