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Q: profit margins ( Answered,   2 Comments )
Subject: profit margins
Category: Business and Money
Asked by: mhibbs-ga
List Price: $100.00
Posted: 17 Apr 2006 14:30 PDT
Expires: 17 May 2006 14:30 PDT
Question ID: 719890
I have developed a product that somewhere down the line I would like
to market to large Do-It-Youself chains like Home Depot, Loews and
Menards. My question is in three parts: Do these large chains
typically or exclusivly order from distributors? What are their
typical profit margins on lawn and garden products? And, How much
benefit is there (if any) to offering a product that has accessory
items that can be sold with the main product?
Subject: Re: profit margins
Answered By: belindalevez-ga on 24 Apr 2006 02:36 PDT
<Profit margins ? Lawn and garden products.

Home centers typically buy directly from the manufacturer.
Source: Referencefor

Retail Nurseries, Lawn & garden supply stores.
These establishments tend to buy from wholesalers.
Source: Referencefor


The gross product margin in Home Centers is 42%. In hardware stores it
is 39%. Lawn and garden equipment has a 4.5% share of the home center
industry. Source: IBIS World.

Becoming a supplier.
Home Depot
Home Depot has a system in place for prospective suppliers. A
Merchandising Supplier is a supplier that sells product to The Home
Depot for resale in their stores, interacting with our merchandising
teams to determine an interest for the product and to establish a
program with product and cost parameters.
Contact email
The company has a supplier registration system that takes 30 to 60
minutes to complete.
Details that need to be supplied are:
Tax ID number
Company ownership information.
Workplace/facilities information: number of employees, number of
locations, and workplace policy questions.
Financial data
Insurance and bonding information
Minimum of three references.
Bank reference(s)
Any professional licenses.

To be considered as a supplier for Lowe?s you need to submit a product
proposal in the form of a letter.
Lowe?s Merchandising Office
PO Box 1000
Mooresville, NC 28115.

Attention: Merchandiser of (your product)

It is not necessary to submit a sample at this stage. The
merchandising team will contact you if your product is selected for

Menard Inc
To apply to have your product sold by Menard you need to send product
information with your contact details to:

Menard, Inc
Purchasing Dept
4777 Menard Dr
Eau Claire, WI 54703;jsessionid=D297A50C8DABF2CC4BA9950B1DE5A62D#q19


Offering accessories
According to this report Lowe?s new system contains employee prompts
to encourage upgrades and add-on products. Source: Home Channel News.

Add-on sales are encouraged by retailers.
Source; Generating add-on sales. Do-It Yourself Retailing.

According to this article customers can be persuaded to buy add-on
items by sales staff and by merchandising. Source: Retail hardware
industry profile. Edward. D. Horgan.>


<Additional links:>

<Report ? home centers in the US. Source: IBIS>

<Trade show>
<The International Home & Housewares Show.>

<Lawn and Garden Marketing & Distributors? Association.>

<Luxury consumers continue to invest in their homes ? report from unity marketing.>

<Search strategy:>

<"lawn and garden" "mark up">

<"lawn and garden" "add on products">

<Do-It-Yourself Retailing  addon>

<"consumers  "add on" survey "lawn and garden">

<Hope this helps.>
Subject: Re: profit margins
From: greyfeld-ga on 18 Apr 2006 08:32 PDT
Home Depot supplier information center including applications, guides and FAQs.!ut/p/.cmd/cs/.ce/7_0_A/.s/7_0_P5/_s.7_0_A/7_0_P5

How to become a Wal-Mart supplier, might be useful because the basic
process will be the same.
Subject: Re: profit margins
From: touya-ga on 19 May 2006 12:53 PDT
if you ever need to find suppliers for your thing, you can try

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