Home Depot is one of the most well-known home improvement chains in the country and can provide you with a solid base of new customers to sell to. But before you try your luck at getting your products into stores, you need to know what the company is looking for.
Merchandisers need to plan their strategy down to the last detail if they want to impress a retailer and become a supplier. Each retailer has slightly different requirements or idiosyncrasies that you need to know in order to effectively present your ideas. If you are unprepared, there’s a good chance retailers will pass on working with you, and you’ll miss the opportunity to grow your customer base and generate revenue.
For companies selling construction-related products, finding a place on the shelves of the largest home improvement retailer, The Home Depot (HD), is a dream come true.
All that exposure to the many customers shopping at the continually growing chain is hard to ignore, which is why many vendors apply to be put on HD’s shelves. Getting in and staying in requires a lot of work, but being available to its massive customer base is the ultimate payoff.
What is Main Objective of Home Depot?
As with any pitch, you need to research what Home Depot expects from its suppliers in order to stand out from other applicants. The first step is to submit a new product application form through Home Depot’s specified website. In addition to filling out basic information about yourself, this is the time to make an excellent first impression.
Product Submission Form
When submitting your product for consideration to Home Depot, it’s essential to treat the application form as a potential resume for your product. The staff members who review your submission need to be able to understand what your product is, how it can be used, and the unique value it offers to Home Depot customers. If your submission form doesn’t clearly convey this information, it could hurt your chances of advancing to further discussions with the decision-makers at Home Depot.
Compliance
Before submitting your application form, it is crucial to ensure that your business adheres to all the environmental, insurance, and labor standards set by the local, state, and federal authorities. It’s worth noting that Home Depot won’t work with any suppliers that violate these regulations, regardless of the product’s appeal. Along with the application form, you have the option of submitting additional materials, such as service licenses and product photos, to assist Home Depot’s decision-makers in understanding your product better. Please note that the evaluation process may take up to 60 days before a final decision is made.
Who Are You Selling to?
Home Depot serves a diverse customer base that spans different age groups and purposes. While baby boomers make up a significant portion of their customers, millennials who are eager to take on DIY projects are increasingly shopping at the chain. In addition, the store caters to many buyers who use their products for professional purposes. Interestingly, while contractors represent only 3% of Home Depot’s customer base, they generate 40% of the store’s revenue, making them the most valuable customers. Given Home Depot’s success in appealing to both homeowners and professionals, it’s essential to consider your marketing strategy carefully if you plan to sell your product at the store. Should you target professionals, non-professionals, or both?
How to Pitch Yourself to the Home Depot
If you’re not currently selling your products at The Home Depot, the first step is to become one of their suppliers. To accomplish this, you’ll need to carefully plan your pitch and put in the effort to stand out from the competition to attract the attention of this retail giant.
What is The Home Depot Looking for?
Innovation is one of the most important criteria that HD Merchants (the people you’ll often be pitching to) look for. What is pain point are you looking to solve? How/why is your product the solution? What differentiates it and makes it so innovative compared to your competition?
To understand the category you’ll be competing in, research significantly. One great place to research? HD itself. Look through your product category on their website to check out the competition; walk the aisles in HD stores to see how they’re presented. This wealth of information helps you understand your place in the category and what you need to do to differentiate yourself from competitors.
Do the Bare Minimum and Apply Online
When it comes to pitching your product to Home Depot, applying online can be a simpler and more convenient option compared to in-person pitches. However, submitting an online application should be the bare minimum effort you put in. While it can certainly lead to Home Depot selling your merchandise, you shouldn’t stop there. If you’re determined to get your product on Home Depot’s shelves, you should do everything you can to speak directly with one of the company’s merchants.
Take Advantage of Special Events
Participating in trade shows and Home Depot “Buying Days” can be an effective way to distinguish yourself from the numerous product submissions Home Depot receives. With some preparation, you can position yourself as a Home Depot vendor.
Trade shows like the National Hardware Show are especially useful as they attract large retail companies looking for innovative products to stock in their stores. About 83% of NHS attendees attend to find new products, and 86% plan to source new products from the event, making it an ideal opportunity to pitch your product directly to Home Depot.
Setting up a booth and being well-prepared to pitch your product will work in your favor. You can also go the extra mile by hosting an educational seminar or an engaging event during the show to generate more interest in your company, making it more appealing to Home Depot or other big-name retailers.
Additionally, Home Depot “Buying Days” offer a chance to directly interact with the company’s merchandising department. Make sure to prepare your pitch and take advantage of your face-to-face meeting with Home Depot to increase your chances of being selected as a vendor.
The Key to the Pitch: Preparation and In-Person Opportunities
Above all else when pitching, know what you’re doing. Know your product, know how you compare to others in your category, and know what HD is looking for. Further, submitting your new product online may work, but it likely won’t be enough. Do whatever you can to get face-to-face with someone from HD’s merchandising team. This isn’t the end of your Home Depot success, however. Once you’re in, you need to entice customers to buy your products and convince The Home Depot that you’re worth keeping around.
Think About Inventory
The last thing you’d want to happen is to be out-of-stock when a customer looks for your product. Now you can use the CAR system that HD has to offer. It’s an automatic replenishment system based on a seasonally adjusted sales history. It considers the weeks of supply, supplier turnaround time, transit and review time, and minimum order quantity.
But if you really want to ensure your products are always well-stocked, you’ll have to keep track yourself. Sales are volatile. What happened previously might not be what happens now. Additionally, in the case of a promotion or some other sales driver, previous sales history may under-predict how much will be sold. Keeping all these factors in mind, your business can make up the difference in supply between what you expect and what CAR predicts.
Promotions and Pricing
Be sure to actively promote your product and encourage they head to HD to buy. There are a number of methods to promote your product- email, direct mail, social media, your website. Even HD flyers can be a great way to promote your product (though you’ll have to convince them that your inclusion will result in additional sales.
Consider pricing as well. If you’ve figured out your financials and decided that lowering the price will increase your volume and then up your revenue, it may be worth it to introduce and a new lower price. Pay attention to your competitor’s prices and the margins you get from the sale of your goods when determining a new price.
Customer Reviews: The Ultimate Support for Your Company’s Claims
Consumer reviews are immensely popular with shoppers nowadays. Reviews are important feedback. The more reviews the better; it shows others are using your product. Quality is just as, if not more, important than the quantity, however. A customer is more likely to buy a product with 2 5-star reviews than 1,000 1-star reviews. The best way to keep customers happy and giving a good review on your product is to provide a good product. If there are any customer service functions for your product, keep that mind as well, and ensure customer service experiences with your company are positive. You can even use customer reviews to help identify what people love and dislike about your product. You can then use this to emphasize the positives and improve the negatives.
Newer product with few reviews? Consider The Home Depot Seeds Program, which lets reviewers try your products so that they can then review them. This will then bolster your review count.
Education Nation
Education can be a very helpful tool in a store like The Home Depot. Local HDs often have regular education programs. In-store demonstrations are very effective for selling to customers because many are homeowners looking to learn to do their home improvement projects themselves. They’re looking for education and you’re providing it, increasing your odds that they’ll purchase your product when completing the job.
It’s also effective at building your relationship with HD employees. Associates taking advantage of your demos will be more knowledgeable about your products’ benefits, improving the likelihood that they’ll present it to inquiring customers.
Prepare for Company Reviews
The Home Depot will periodically review its suppliers and products.
Business Reviews, for example, review the supplier itself. Merchants will review supplier and product performance and question its future initiatives.
Product-Line Reviews, on the other hand, will review multiple suppliers in a particular category. They tend to do this when they’re looking to make major changes within a category, like a new assortment. PLRs will likely only affect a portion of your product offerings.
In order to be prepared for these reviews, work year-round on company and market analyses. Treating it as an ongoing process will mean you’re always prepared and more likely to have a positive review. Never mind the fact that the information gained from these analyses can be used to make good business decisions.
Go Above and Beyond
Looking increase your business with Home Depot, then you must track the progress of your performance in daily basis. Follow the above and beyond with education, exceptional omnichannel experiences, and other tactics. The Home Depot does give you access to a vast customer base, but they also a variety of other suppliers’ products. You have to prove to The Home Depot and the customer that you’re the best in the category.
