Wal-Mart and NTR: An Inside Look (pt. 2) |
Summary:
Wal-Mart and NTR: An Inside Look (pt. 2) The Sales Manager The Vendor When you contact them, ask, "What will it take for you to allocate XX dollars for the program?" You are effectively asking them to tell you how much product they need to sell in to each store in order for them to support your program. The second logistical question is, "What is the product?" A soda distributor once offered to spend $6,000 if the Wal-Mart stores each took two palettes of Orange Crush/A&W Root Beer. The managers asked for bottled water instead; the bottler agreed, and the deal was done. Step by Step
Act as a deal broker. In many instances, you are acting as an extension of the vendors sales team. Think outside your market. A common mistake of "first-timers" is to attempt a Wal-Mart program in only three stores because thats all that are in your town or coverage area. Forget your coverage area. Think in terms of whole districts, and think statewide. Many Radio AEs stall out because the vendor cant afford only three stores. Think big! What Kind of Programs? Charity Begins At Wal-Mart Remember, you wont be able to schmooze them with gifts. Wal-Mart employees cannot accept so much as the pen they sign off with. So no freebies to "make them feel good about working with you." Community Involvement is big at Wal-Mart. Wal-Mart is the single largest contributor to the Childrens Miracle Network. Each Wal-Mart has a financial CMN goal, which must be met for the year by about mid-May. All money must be in their individual "165" accounts at that time. Bentonville then pulls the money and tallies it up. If you structure a program in which each vendor pays $6,000 and you take $500 off the top as a contribution to CMN, you are helping raise money a measurable event. With five vendors participating, you could raise $2,500; maybe you could add other money-raising ideas such as an on-air auction, a golf tournament, or a walkathon. At the same time, you keep $27,500 in revenue, less any point-of-sale expenses. Wal-Mart is a great NTR retailer. Like any retailer, the little things make all the difference in your success. Dollars and vendor packages will change depending on your market. In some markets, vendors have been asked to spend $30,000 each! The question will always be "will the stores be able to sell it and how much product will it take to justify a spend at that level?" An amount like $5,000 to $10,000 per vendor may be more realistic. Use your judgement and look at these programs as long-term relationships. Make sure you call on the Pharmacy DM and RM, the Tire & Lube Express (TLE) DM and, depending on which part of the country you are in, other District Managers who oversee other "separate" departments within Wal-Mart. Wal-Mart is full of opportunity. |