Getting retail floor space within mass merchant and club stores can be a game changer for your products. The opportunity to sell your product on the floor of Walmart, Costco, Sam’s Club, and other club stores is huge.
Below are our 10 steps to achieving pre-packed pallet display success.
1. Familiarize yourself with retailer requirements and in-store locations
Each club store has its own requirements about pallet type, packaging and display.
For example, an under-rack Costco or Sam’s Club pallet display should be no taller than 52” including the pallet, and shoppable from one side. An end-cap location can be shopped from three sides. While both Sam’s Club and Costco use 48”x 40” CHEP or PECO pallets, they have different requirements around pallet skirting, display graphics and more.
Meeting retailer requirements for pallet displays includes a thorough understanding of the requirements for:
- Packaging & Product: general packaging standards, acceptable materials and sustainability of the product on the pallet display
- Display Options: layout, number of facings, number of layers, trays, pallet skirts, etc.
- Transportation: determine who is paying for freight to the retailer’s distribution center
- Merchandising Guidelines: note graphic and shopper marketing preferences for each retailer
- Relevant Specifications: CHEP, PECO, IGS, and GMS1
2. Optimize packaging and display layout to limit waste and unnecessary handling
We recommend having your packaging designed to maximize number of units per pallet with the fewest number of fillers and unnecessary parts.
3. Design display for efficient transportation
Maximizing product per pallet per container and/or truckload will help reduce your logistics costs and increase profitability.
4. Engage your suppliers
Working collaboratively with partners vs. vendors is crucial for comprehensively addressing production, fulfillment and logistics challenges for delivering a quality program to the retailer.
5. Understand the logistics, freight costs and timing
Ensuring on-time delivery is essential for avoiding retailer penalties and maintaining a strong relationship with them.
6. Understand your “Success Metrics”
Find out how the retailer will evaluate your first order and what the metrics are for success. For example:
- Target percent of pallet sold in a specified time period
- $ sold per square foot within a specified time period
- Minimum/maximum desired value per pallet display
- AQL: acceptable quality level (e.g. 99%)
7. Treat first orders as a marketing expense
Retailers will test your product in a specific region or limited number of stores before issuing a multi-region or national order. This gives both parties a chance to limit their exposure to sales risk while testing consumer engagement and sell-through. We recommend treating these orders as a marketing expense and not judging the success based on their profit or margin.
8. Choose a partner that is aligned with and supports your goals
TPH Global Solutions® will design, manufacture and fulfill (assemble and pack) your pallet displays with the expertise and attention to detail that will put you on a path to long-term recurring orders and explosive sales growth.
9. Learn more about retailer pallet and display requirements
10. Reach out to speak with one of our club store experts before your next buyer meeting
TPH will prepare you with the details and answers you need to make it easy for the buyer to award you with an order and to impress them with your ability to deliver a high-quality program on time and in compliance with all of the retailer requirements. It’s like having the answers before the test!