Direct store distributors (DSDs) bypass a retailer’s distribution center to deliver your products directly to the retail store, usually meaning faster turnaround times and better delivery for high demand items. Sounds perfect, right? So how do you pick the perfect direct store distributor? Here are some tips:
Do your research.
Make a list of potential candidates based on information you gather at trade shows and in industry publications. After you compile a list of potential distributors, work on narrowing the list. What geography do they serve? What retailers do they currently work with? Will they require exclusive rights to distribute your product? If you can’t find the answers to these questions on their website, contact them and see if you can get a sample distribution agreement to read the fine print. Knowing the answers to these questions will help you find the perfect DSD.
Share the passion.
After you sign with a distributor, this person will ultimately become the face of your product in interactions with retailers. Because of this, you want to make sure the DSD you bring on board understands your product, and has enough faith in it to confidently bring it to retailers and sell it. DSDs should work with your business because they are enthusiastic about your products, not because they’re just looking for a paycheck. If you don’t feel that fire from potential DSDs, move on to another one who will work hard to help capture market share for your brand.
Ask the end users.
The end goal of hiring a distributor is obviously to get your products in retail stores. So why not ask these desired customers what distributors they prefer to work with. You want to be sure you’re hiring a distribution company they haven’t had any issues with in the past so they don’t hesitate to sell your product on their shelves. As a bonus, these retailers will appreciate the fact that you want their business enough to ask how you can make life easier for them.
Get references.
Don’t be shy about asking a potential DSD for references. Quality DSDs should have a number of clients that would speak highly of their services. Use these references to get valuable information about DSDs gained from personal experience, like friendliness, professionalism, and timeliness of the deliveries. If a potential DSD is wary of providing you references, you should be wary of working with them.