08/ 01/ 2004
by Gary M. Stern
When Lisa Coates and Robin Rarrick started Monkey Muffins in 2001, they faced one major hurdle: finding a distributor for their pint-sized healthy muffins.Larger distributors rejected taking on unproven Nyack, N.Y.-based Monkey Muffins. “Their basic attitude was that we weren’t Hostess or Kraft – we hadn’t branded our name yet,” says Coates. Finding it impossible to gain a foothold in the very competitive metropolitan New York area, the small-business owners created their own distribution system.
“We wanted our product to be the anchor,” says Coates. So they selected two independent distributors, granted them territories (which prohibited them from selling competing products), asked them to purchase refrigerated Monkey Muffins vans and uniforms, and put them in charge of maintaining quality control. In return, the distributors purchased the muffins and set their own price. The more they sold, the more they and Monkey Muffins profited. The setup worked great: Monkey Muffins gained “control over the branding of our product,” Rarrick says.
Many small businesses develop their products without considering distribution, notes Christine Kloser, who runs NewEntrepreneur.com. The best way to win a distributor is to focus on marketing and create a breakout product that stands out among its competitors, she says.
Create hype
Like Monkey Muffins, Greg Henry couldn’t find any distributor for Jammin’ Nectars, his line of Caribbean-style beverages launched four years ago. “Distributors are not interested in pioneering a new brand. They want a sure thing,” says Henry, who is based in Sterling, Va.
Henry’s solution was to start a grassroots marketing campaign to make a name for his product. He attended trade shows and convinced 25 retail accounts, mostly smaller grocery stores, to sell his juices. “Then it was a no-brainer finding a distributor to take our product line,” he adds.
He also went store to store to convince retail outlets to carry his drink. “Once you build rapport, they’ll always find shelf space for you,” he says. “Every retail outlet is looking for a brand with legs. You just have to prove that your product will have longevity.”
Do it yourself
If distributors continue to ignore your product, forget them. Some small-business owners find doing it yourself is easier anyway. Wendy Robbins and Jorli McLain, who created the Tingler head massager, had no trouble finding initial distributors for their product. But they quickly became dissatisfied with the distributors’ inability to deliver the product on time and their shoddy customer service.
Recently the duo inaugurated its own fulfillment center and warehouse in Pacific Palisades, Calif., staffed by four employees. “We’ve systemized every aspect of our business, download orders from the Web and maintain a database. Our reps take a personal interest in our clients,” says Robbins.
Web Extras: For more tips on distribution, visit the "Sales and Marketing" category of the Business Toolbox.
