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Reseller Kit
Reseller kits differ, according to which type of reseller you use and whether you use one or two-tier distribution. To get a product into distribution, you would send either the retail or VAR reseller kit--this will
contain the same information that wholesale distributors need to see prior to approval and assigning a part number. In addition, with distribution you would usually committ to a promotional plan, complete an
application and sign a distributor agreement. These agreements can contain lots of “gotcha’s” (such as replacement of inventory--even if there is a fire on their end, etc.) so be carefull--you don’t have to accept
everything--they just put everything in the agreement. Get qualified help at this step since the agreement can affect your overall profitability and risk.
Following are sample reseller kit elements (some contain links to actual reseller samples):
Retail Kit
The audience for a retail kit is the software buyer, either at a superstore, mass merchant, regional chain, consumer electronics, or independent reseller.
They all need the same information. The quality of this kit often decides whether or not the buyer will take your call, and whether or not you will get into the chain.
While attending Retail Vision, I was told once by Mike Smith, a buyer at CompUSA, that some vendors have sent a poorly designed box with a basic intro letter. He explained that he rejects them and doesn’t follow-up
or spend any time with them since they, “Obviously” don’t know what is required, and he has no time to train them. When I then told him how small the company was that I worked for (when I originally sent the
package), he said he would not have let us into his store based on our numbers, but we had such a professional retail kit that addressed all his questions he figured we must know what we were doing. Of course, as a
result of getting into our desired locations, we grew from $2 million to $12 million during the same year.
Typically I create a retail kit with the following items (some of these items can also be found within the collateral section of this site):
- Product Package. This is one of the first collateral pieces, and the most important item you can send, since the buyer will often determine whether you do or do not get on the shelf based on your package. Click here to register with the Chanimal site (lists are not sold). This will allow you to download the entire Chanimal Packaging Guidelines in MS Word format. These guidelines are invaluable and contain the framework and acid tests for effective package design (whether virtual or actual packaging)--perfect guidelines for submitting to your design team!
- Folder. I typically create a generic folder with a place for a sticker--then I sticker the kit “Reseller kit.” Then I can re-use the relatively expensive folders
for other purposes such as, “Press kit,” etc. Attached is a sample folder (all attachments in this section are .jpg graphic images).
- Introductory letter. This would briefly (1-2 sentences) explain the company, the market, the product, a special stocking offer (I always open with a promotion), and the request to be stocked, along with a
hint on possible MDF/CO-op expenditures.
- Sell Sheet. This is typically a black and white (so it can also be faxed) double sided slick that is given to buyers and distribution only--it is not an end-user piece. I’ve attached two sample sell sheets (front (A1, B1) and back (A2, B2)) of two products that
no longer exists. Sometimes I have created a panel of data sheets that provides the same kind of information as a sell sheet (sample).
The Sell sheet pretty much provides all of the information that the buyer needs to decide to stock and order the product, including the following information:
- Product name
- MSRP (for distribution since they use this for markup) and/or anticipated street price
- Platform
- Category
- Product overview
- Market size/potential/demographics
- Competitive position
- Company/Product awards
- Projected Rate of Sales
- Launch outline
- Ordering information (product SKU, disti number, weight, size)
- System specs
- Company background
- Contact information
- Product Slick. This is the single, four-color product slick that is given to customers. Attached are two sample product slicks (front (A1, B1) and back (A2, B2). As a standard collateral piece (not specific to resellers), the format and information is discussed within the Marcom collateral section. The product slick sample for 3-D Website builder also doubled as a shelf talker (laminated and then hung on the retail shelf next to the product).
- Power Point. A presentation that you can review with the buyer in person, or over the phone.
- Point of Purchase (POP) samples. I include any special POP materials--if available (laminated product slicks that act as shelf hangers, tent cards, pictures of pop-up displays, monitor wraps (depending on
product type), store demo displays, etc.
- Product reviews. I typically photocopy positive customer and press reviews (or send reprints) so the buyer will have 3rd person validation that our product is good.
These positive reviews are garnered through our analyst and PR efforts.
- Sample product. If the box is completed, I send a complete package to review. Of course the packaging follows the Chanimal Packaging Guidelines (available for FREE when you register at the Chanimal site). Also remember to apply for a FREE packaging review ($1,000 value). I don’t review all packages (too busy), but I may review yours if I have the time and like your product category. One time I was able to sell in-prior to having received my printed boxes, so I sent a color box proof--they got to see the packaging and I got setup in their system prior to even having the box back from the printer.
- Promotional flyer. I usually run a buy 2, get one free, or some other type of special “sell-in” promotion that is acceptable to the store (some don’t like 2/1, but prefer a discount (same thing but their systems handle it differently)) and only good for the first order. This helps get more inventory into the store during the initial order, and sometimes helps set a lower, more competitive price--that often goes unchanged.
- Demo CD or video. I include a demo product CD or video if available. This would help them to see the product--if they decided to do that much due diligence.
- Give-away item. Sometimes I include a T-shirt, hat, mug, mouse pad, or other small branded giveaway items to get the buyer to remember me and the product. I am cautious to understand their rules for “gifts” so I don’t violate any retail store ethics policy.
For collateral design help, go to www.awdesign.com (banner above). The director, Art, has done some fantastic work for me.
VAR, System Integrator Kit
The VAR/System Integrator Kit contains the same items as the retail kit (minus any shelf talker or other POP material), plus additional reseller authorization information--if applicable (if they have not already
signed up). The VAR authorization program, with its associated deliverables is described within the Partner Program section. From the Partner Program section, the VAR kit would contain the following existing or additional elements (view partner program for descriptions):
- Reseller Power Point
- Introductory letter
- Competitive Reseller Matrix (shows every major element of a program and allows you to compare yours to your competitors)
- Reseller application
- Copy of formal reseller agreement
- A reseller agreement
- Description of the reseller levels (Authorized, Gold, Platinum, etc.) along with the benefits and requirements at each level
- Contact information
- Reseller NFR prices
- Distribution part numbers
- Sample product slicks, data sheets
- Customer Power Point
- Training requirements & schedules
- Q & A
Log-in and download a complete sample reseller program in a single .zip file (all the items above in Word, Excell and PowerPoint formats) - apx. 2.9 meg. The latest 2006 version contains a complete re-work and update and can be used to create an entire online partner portal.
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