Dear Kogu,
Each network has its own policies regarding vendor recruitment. The
first step is to contact their vendor relations, by filling an online
form or by calling/writing to them - please note that at this stage
they accept no product samples, only descriptions thereof. Basically,
you can apply online with most of them, using an online form:
Shop NBC
<http://www.shopnbc.com/pom2k.aspx?category=cc/vendor&page=vendor_steps&title=vendor_steps&displaytype=5&ft=0&CIID=11314
>
Shop at Home TV
<http://www.shopathometv.com/vendorform/vendorform.html>
Home Shopping Network
New Business Development
1 HSN Drive
St. Petersburg, FL 33729
<http://www.hsn.com/cs/faqs/default.aspx#vendor>
QVC - product search
<http://www.qvcproductsearch.com/>
QVC Studio Park
Vendor Relations
1200 Wilson Drive
Mail Stop #128
West Chester, PA 19380-4262
Jewelry Television
<http://www.jewelrytelevision.com/vendor>
The Shopping Channel (Canada)
The Shopping Channel
Vendor Inquiries
59 Ambassador Drive
Mississauga, Ontario
L5T 2P9
vendorinquiries@theshoppingchannel.com
Website <http://www.theshoppingchannel.com/>
But contacting them directly is only one option. Most of the networks
also hold fairs in big cities, where one could demonstrate their
product. The vendor relations department - the one that handles the
online forms - announces these. Entrepreneur magazine has many other
important advices for someone wishing to sell through home shopping
networks, in the article "Lights, Camera, Action":
Don Debelak, "Lights, Camera, Action" , Entrepreneur magazine - April
2003, <http://www.entrepreneur.com/article/0,4621,307359-1,00.html>.
You could also have a lawyer or an agent that would help you push the
product, as professionals who have already worked with the networks;
see also this artilce:
"Tap TV Shopping Channels" From: 301 Great Management Ideas| January
1995, Inc.com <http://www.inc.com/articles/1995/01/11149.html>
Tenonline's source is a Mark Schneider, "610-363-0216, Product
Concepts Company, Philadelphia, PA. Mark and his associates market
products to the TV shopping channels, such as QVC, Home Shopping
Network, Value Vision, etc." - but the phone belongs to another party
and the company seems no to exist.
Back Channel media
<http://www.backchannelmedia.com/home-shopping-programs/ > offers to
built your show, just like a home shopping network.
Michael Coran <http://www.klehr.com/profiles/mcoran.htm> is an
attorney who worked with home shopping networks in the past.
This might be advisable, since it is not easy to manage and market
your idea and product to these networks: "Out of 13,000 inquiries
received last year from potential vendors, only about 2% to 3% led to
a purchase order" (SOURCE: ALEXANDRA KAPTIK, "Strategies for Securing
A Home-Shopping Spot", From The Wall Street Journal Online, Startup
Journal, <http://www.startupjournal.com/columnists/casestudy/20030401-casestudy.html>).
"Each network has its own Vendor Relations department. Contact them
and ask for a Product Information Form. Fill it out and return it,
along with a photo of your product (samples are discouraged). The odds
are long, but definitely worth a shot. Three-quarters of the more than
1,000 product sheets received every week are rejected. 25 percent
receive a second look. As with catalogs and retailers, the home
shopping networks purchase products at a discount, and resell them
directly to their customers. Upon preliminary approval, a product must
pass rigorous Quality Assurance requirements, and be individually
packaged and labeled for shipping in accordance with their seven-day
customer delivery guarantee. " (SOURCE: Patrick W. Cochrane, "Get Your
Product on Home Shopping Networks", On the group
misc.business.marketing.moderated, 1997/01/17,
<http://groups.google.com/groups?selm=32ee82cb.9766416%40news.worldonline.nl&output=gplain>).
If you passed the first stage, A second step would be the evaluation
of the marketability of your product, from all angles possible. You
would be required to send in a sample and a good explanation of the
product - one that would inform and seduce the uninformed buyer to
purchase it. "Things that are considered during the evaluation are
liability of the product, existence of a competing product on the
channel, profit margins, uniqueness, and the demonstrability of the
product. Liability and margins are issues dealt with by all
companies." (SOURCE: "Selling Products to Shopping Channels",
Tenonline, <http://tenonline.org/art/9709.html>).
If you're lucky, the product then goes for a third stage, of quality
assurance. "This is where the product is tested to ensure that it will
withstand the rigors of shipping. The product is also evaluated to be
sure that it is not dangerous in any way and that the directions are
sufficient for the channel's customers to use the product properly.
If there are problems, many times they will work with you to identify
a solution to the problems encountered." (SOURCE: ibid).
Now, congratulations. You asked about the standard vendor agreements.
Naturally, the full details are kept secret by the networks - they are
a private business and would not like the competitors to know the
exact profits arrangements.
However, I found some information for you. Most importantly, the
networks make a basic order of a certain amount (QVC, for example,
write in their website that it should be "not less than $20,000 to
$25,000 per individual item at its wholesale cost.", at a minimum
price of $15 per product), which you have to send to them before the
show. If the item doesn't sell, you'll have to accept the returned
items and pay them back for the unsold items, as well as items
returned by customers within the 30-days policy. This is trickey -
this means, that if you don't sell the whole stock, you might find
yourself stuck with it.
The networks usually do not charge for the air time, as OVC ensure on
their website. In this, they are not much different than any other
retailer buying a bulk of your product, except for their basic demand
that you'll buy back any item not sold (incl. shipping), and that
you'll make a huge bulk order in the beginning. 45 days after the show
was aired, you'll receive your payment, as well as the returned items.
If the show was a wild success, you might be asked to have another
round.
Someone mentioned, regarding QVC: "Contract stated 85% paid within 15
days, balance 15% paid in 30 from date of last payment to cover
returns." (SOURCE: PTD Babi, " Re: Home Shopping Show?", <Newsgroups:
alt.crafts.professional, 1996/12/18,
<http://groups.google.com/groups?hl=en&lr=&ie=UTF-8&c2coff=1&selm=19961218051300.AAA21227%40ladder01.news.aol.com>).
This was back in 1996, things might have changed, and in any case, it
could be that they offer different contracts to different vendors.
However, it helps you get the picture.
Tenonline add "The shopping channel will mark up the sale price of
your product 30% to 50% over the wholesale cost. Electronics tend to
fall in the 30% range and items such as housewares, nutrition and
cosmetics fall in the 50% range. When evaluating a product idea, the
inventor must determine whether sufficient margins can be had for all
those involved in the sale of the product. This includes the channel,
the representative (if any) and the manufacturer. Failing to have
sufficient margins can cause serious cash flow problems and kill a
company -- even with a great selling product." (ibid).
I hope this answered your question. Please contact me if you need any
clarifications on this answer before you rate it. My search strategy
was to seek sites or pages featuring terms such as "home shopping
networks" with the term "vendor(s)", and with similar terms that
answered your question. |
