Selling to Retailers – Buyer Asks for Exclusivity?

Hey everyone it’s Karen Waksman the founder of Retail MBA. Today I want to address a question that often comes up in my workshops and classes. People frequently ask me “Karen what should I do if a big chain store wants rights to sell my product? They want me to only sell through them. How should I handle this situation? Should I agree?” As someone who has worked in sales for years and sold products to retailers I strongly advise against limiting yourself to just one chain store. Lets dive into the topic of exclusivity and how you can navigate requests.

Exclusivity Requests, from Chain Stores

The idea of exclusivity can be quite appealing also intimidating. When a chain store asks for exclusivity they essentially want the sole rights to sell your product for a period of time. This means you won’t be able to sell your product through any retailer during that timeframe. While it may seem flattering to receive such a request it’s crucial to approach it with caution and careful thought.

Avoiding Exclusivity Requests

In general most chain store buyers don’t typically demand exclusivity—especially if you’re a supplier or your product is untested, in the market.
From their point of view they may feel hesitant, about taking on the responsibility of being the retailer for your product.. Don’t worry much because most of the time you won’t encounter this request.

Dealing with Requests for Exclusivity

However if a buyer from a chain store does ask for exclusivity there are approaches you can consider. Firstly if the buyer insists on rights for a period you should evaluate whether it makes financial sense for your business. If it involves an order volume that would benefit you financially you might consider agreeing to the exclusivity request for a time.

Offering Limited Exclusivity

On the hand if you’re not comfortable with granting exclusivity you can find a middle ground through negotiation. For example you could offer the chain store a brief head start of a weeks or a month before introducing the product to retailers. This way they can have some access, during the launch phase while allowing you to assess how well the product performs in the market.

Proceeding with Care

Nevertheless it’s crucial to proceed. Carefully consider the potential consequences of granting exclusivity. Agreeing to exclusivity without evaluation may restrict your products reach. Hinder your ability to explore other lucrative retail opportunities.
As an entrepreneur your main objective is to maximize revenue and increase brand exposure by selling your product to a range of retailers.

However there may be circumstances where agreeing to exclusivity’s justifiable. For example if a retail giant, like Walmart expresses interest in placing orders it might be worth considering exclusivity due to the financial gain and exposure such a partnership could provide.

In conclusion while requests for exclusivity from chain stores may occasionally arise they are not the practice. Most buyers from chain stores prefer not to seek exclusivity for unproven products. As an entrepreneur it’s crucial to prioritize expanding the presence of your product across retailers in order to reach an audience. Nevertheless in situations involving financial benefits or high profile partnerships limited exclusivity might be worth considering. However it’s important to approach requests with consideration and evaluate their long term impact on your business.

Selling to Retailers

Thank you for watching! I’m Karen Waksman. I encourage you to explore valuable content and strategies, on Retail MBA at retailmba.com. Stay connected for videos where I share insights that can help you succeed in selling your products to retailers.