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WebDaemon

posts: 13

Jul 04, 2008 2:49 AM ET Quote Report Abuse

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Hello All,

My name is Leon, and I am starting another new company.

Here is a bit of background before I go on.

I currently operate a Wholesale iPhone business. I sell thousands of units weekly. I have been doing this for a few months and it has brought me great success.

I am now looking to expand my corporate footprint into other areas. I am currently working on agreements with BestBuy and Walmart to see if they will be willing to sell OEM HDMI cables either branded under the name of the company selling it (preferred), or branded under my companies name.

There is a massive market and I have done my research. My cables are certified to the same standards as all the top selling HDMI Cables, in fact the same company who is supplying me with the raw cable also supplies the top cable companies.

I am looking to you, my fellow StartupNationers to help me. I would like to know how things went when you dealt with Bigbox retailers, any advice you might like to pass on, and any information you might find useful.

I currently have 2 people working on the deals, one at BestBuy the other at Walmart. Both the men working for me are currently selling items at their respective stores.

Thank you,

Leon

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If your looking for Apple iPhone`s, Nokia N95`s, or HDMI Cables. Contact me.

tgroup

posts: 111

Jul 04, 2008 9:24 AM ET Quote Report Abuse

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Hey Leon-

Good luck to you. I`ve done business with Wal-Mart for years (in fact, I just got back from Bentonville on Wednesday). I have several vendor agreements with them (each for a different department). Be sure that you review your agreement very carefully before you sign. I was so excited about the first one that I hardly paid attention to it at all--I just signed it and off I went. Only later did I realize that it was almost impossible for my company to make money on that agreement. In fact, in the long run, we lost money with every shipment to Wal-Mart.

Luckily, I was able to go back and re-negotiate certain points and it turned out much better. When I did the second agreement I was much wiser and negotiated a fair contract that works out well for all. Now I know what to look for and how to negotiate a favorable contract.

It`s not just Wal-Mart though--you have to carefully negotiate your contracts with all of the mass market retailers. A new store allowance here, a promotional allowance there, a shortage allowance over there and all the rest of them can quickly eat up your profit margin. Also, a guaranteed sale can be the kiss of death if not managed extremely carefully.

Good luck to you.
Ron

WebDaemon

posts: 13

Jul 04, 2008 11:07 AM ET Quote Report Abuse

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Thanks for your help.

I have 3 people who will be assisting me in negotiating this deal.

1. The guy who is helping me get into Walmart.

2. Corporate Law Attorney

3. My Accountant

I will have the contract(s) reviewed by multiple people, but those 3 will be my main point of focus.

Would you have any aversion in helping me get through to Walmart? The initial stage(s), from what I hear, are the most difficult, and any assistance I can get would be very very helpful.

Thanks,

Leon

-------------------------

If your looking for Apple iPhone`s, Nokia N95`s, or HDMI Cables. Contact me.

tgroup

posts: 111

Jul 04, 2008 11:34 AM ET Quote Report Abuse

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Not at all. Just send me a message.

Thanks,
Ron

JonJulnes

posts: 1

May 28, 2010 2:32 PM ET Quote Report Abuse

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Sure would love to get some advice on how to connect/get past the guards at some of the larger enterprises out there (such as Carquest/Ace/True Value/etc.).

We were offered a 50 store test at one of the 2 largest Big Box hardware guys (I'd tell you which one but it says in their 3 billion page binder that I need permission to use their name, logo, likeness etc.) and I'm overwhelmed by the restrictions placed on vendors.

Is it that way with every large retailer?

Also, some of the requirements (security on shipments/database access....) may be too much for us until we're of a certain size. Any recommendations on company's that can act as liaisons (sp?) between us and the BB guys?

Love to hear from anyone that knows this stuff.

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