In USA there is one interesting industry called subscription boxes.
Subscription box companies operate by offering curated packages of products delivered to customers on a recurring basis, typically monthly. They typically ship 5-7 products every month to their consumers, from a dedicated demographic.
These sub-box are variating across many categories: beauty, health, life style, nutrition, pets and more. There’s even one for metal records & accessories!
They have thousands and hundreds of thousands of subscribers so they must work by volume with their vendor. And that’s where YOU are coming into the picture. You can sell them your products and pitch your brand to a huge audience, the hardest thing to achieve with them is the pricing. Since they are buying very big quantities, they expect very low price. But once you manage to overcome this issue, your brand can get an exposure that would never be achieved in other channels.
And yes, we do work with sub-box companies. We would never miss an opportunity like that!
COSTCO’S HIGHER PURCHASE CAP 📈
Previously, I mentioned that Costco has a cap of purchasing up to 20% of a vendor’s total annual sales. However, it turns out that for certain categories, like food, the limit is 25%.
In a recent conversation with Costco, they clarified that this higher threshold applies specifically to larger categories, such as tea. Even a test listing in this section could easily exceed the 25% threshold. So, Costco is a match for brands with big numbers, I would say 7-8 figures.
BIG 5 SPORTING GOOD RETAILER (426 STORES) 🏬
Were a very good partner of us but earlier this year a few buyers left there. We had to find a way to get in touch with the new ones and for new categories, so we approached, slowly and smart, to almost every possible buyer in their organization.
Buyers are busy, always, but insisting on your targets will bring results. Here’s a screen shot of one buyer simply replying us with the right contact we are looking for. I can say that every day we are seeing approximately 20-30 emails like that, just by pulling the strings, and these eventually leads to business.
WHEN IS THE BEST TIME TO OFFER MY PRODUCTS TO BUYERS 🚀
I hear this question often, but there’s no one-size-fits-all answer. Each chain store follows its own purchasing schedule. Some plan 1-3 months ahead, while others work up to a year and a half in advance.
Some retailers make purchases year-round, while others buy only 4 to 6 times a year.
The key takeaway is this: if you’re focusing on just one chain store (though it’s better to expand your reach!), learn their specific buying periods. Otherwise, present your products continuously to as many retailers as possible.
QUICK QUESTION, COULD YOU HELP ME OUT?
We are considering entering the EU retail market, with companies like Harrods (330 stores), Marks & Spencer (1000 stores) and similar ones.
Would you be interested in this for your brand? Leave a comment with your thoughts, we take EVERY SINGLE COMMENT into our consideration.