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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? |
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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 business.com http://www.referenceforbusiness.com/industries/Retail-Trade/Hardware-Stores.html Retail Nurseries, Lawn & garden supply stores. These establishments tend to buy from wholesalers. Source: Referencefor business.com http://www.referenceforbusiness.com/industries/Retail-Trade/Retail-Nurseries-Lawn-Garden-Supply.html ------------------------------------ Mark-up 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. http://66.249.93.104/search?q=cache:ltHk_fGAVzkJ:www.ibisworld.com/industry/segmentation.asp%3Findustry_id%3D1031+%22lawn+and+garden%22+%22mark+up%22&hl=nl&ct=clnk&cd=8 ------------------------------------- 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 partner_communications@homedepot.com https://suppliercenter.homedepot.com/wps/portal/WhatIs#2 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. https://app.suppliergateway.com/homedepot/Login.aspx?sdms=y --------------------------------------- Lowe?s To be considered as a supplier for Lowe?s you need to submit a product proposal in the form of a letter. Address: 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 review. http://www.lowes.com/lowes/lkn?action=pg&p=CustServ%2FcustSvcVendorInquiry.html&rn=RightNavFiles%2Fno.html --------------------------------- 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 http://www.menards.com/FAQs.do;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. http://www.edgenet.com/newsroom/PDF/1702401097HCNLowes-eprint.pdf Add-on sales are encouraged by retailers. Source; Generating add-on sales. Do-It Yourself Retailing. http://www.highbeam.com/doc/1G1:15535313/Generating+add-on+sales~R~+(includes+related+article)+(Customer+Service+Survival+Kit)+(Cover+Story).html?refid=SEO 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. http://66.249.93.104/search?q=cache:An5L9jbt7NIJ:www.sbaer.uca.edu/profiles/industry_profiles/20.pdf++Do-It-Yourself+Retailing++addon&hl=nl&gl=be&ct=clnk&cd=14> ----------------------------------------- <Additional links:> <Report ? home centers in the US. Source: IBIS> <http://www.ibisworld.com/industry/segmentation.asp?industry_id=1031> <Trade show> <The International Home & Housewares Show.> <http://www.housewares.org/ihshow/exhibitorinfo.asp> <Lawn and Garden Marketing & Distributors? Association.> <http://www.lgmda.org/> <Luxury consumers continue to invest in their homes ? report from unity marketing.> <http://www.unitymarketingonline.com/reports2/luxury/luxury2Q2005.html> <Search strategy:> <"lawn and garden" "mark up"> <://www.google.com/search?hl=nl&rls=GGLG%2CGGLG%3A2006-12%2CGGLG%3Aen&q=%22lawn+and+garden%22+%22mark+up%22&lr=> <"lawn and garden" "add on products"> <://www.google.com/search?hl=nl&q=%22lawn+and+garden%22+%22add+on+products%22&lr=> <Do-It-Yourself Retailing addon> <://www.google.be/search?q=+Do-It-Yourself+Retailing++addon&hl=nl&lr=&start=10&sa=N> <"consumers "add on" survey "lawn and garden"> <://www.google.be/search?hl=nl&q=%22consumers++%22add+on%22+survey+%22lawn+and+garden%22&btnG=Zoeken&meta=> <Hope this helps.> |
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Subject:
Re: profit margins
From: greyfeld-ga on 18 Apr 2006 08:32 PDT |
Home Depot supplier information center including applications, guides and FAQs. https://suppliercenter.homedepot.com/wps/portal/WhatIs#2 https://suppliercenter.homedepot.com/wps/portal/!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. http://sbinfocanada.about.com/gi/dynamic/offsite.htm?zi=1/XJ&sdn=sbinfocanada&zu=http%3A%2F%2Fwww.startupjournal.com%2Fhowto%2Fsuccessstories%2F20050920-bounds.html http://sbinfocanada.about.com/gi/dynamic/offsite.htm?zi=1/XJ&sdn=sbinfocanada&zu=http%3A%2F%2Fwww.findarticles.com%2Fp%2Farticles%2Fmi_m0DTI%2Fis_n1_v26%2Fai_20313437 |
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 www.axonai.com |
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