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QVC
Holds National Product Search at Mall of America
(eligible
product SIC codes)
WEST
CHESTER, Pa. (Feb. 5, 2002) -- Aspiring entrepreneurs will have
the opportunity to present their consumer products to QVC at
the e-commerce leader's national product search on Saturday,
April 27 and Sunday, April 28 at the Mall of America, located
in Bloomington, Minn. QVC's National Product Search will provide
inventors, designers and manufacturers with a forum to share
their innovative consumer products with QVC representatives from
the merchandising, product development and vendor relations divisions.
"QVC
introduces more than 250 new products to our viewers each week,
so it's paramount for us to continually search for what's new
and innovative," said Darlene Daggett, QVC's executive vice president
of merchandising. "Some of our most successful product lines
have come to QVC through past product searches. This search at
the Mall of America will be an opportunity for QVC to review
and meet potential new vendors from across the country who hope
to market their product or invention to a national audience."
Marilyn
Montross, QVC's director of vendor relations added, "Almost everyone
dreams of creating their own business, but what holds so many
people back is the 'Where do I begin?' question. This search
will incorporate informative workshops for potential vendors
and inventors that will educate them with marketing, sales and
product development information. Our hope is to empower them
with the information they need to proceed with their dream."
Products
on QVC that have shown great success are those that are demonstrable
on live television, solve an everyday problem, appeal to a broad
audience, have unique features and benefits and are topical or
timely.
Past
searches have yielded great success for both the vendor and QVC
alike. Chesapeake Bay Gourmet, Junior's Cheesecakes, ProStrong
and Quacker Factory were products discovered in 1995 during The
Quest for America's Best - QVC's 50 in 50 Tour. As of today,
these successful product lines have generated millions of dollars
in revenue.
Each
potential vendor will have the opportunity to meet with a QVC
representative to "audition" his or her product or prototype.
Advance registration is necessary to schedule and confirm an
appointment. More information and registration forms can be obtained
at www.QVCproductsearch.com or
toll-free at 1-866-302-4633.
(eligible
product SIC codes)
Industry "Bests"
- Best
Selling Price Category: $19.99-$39.99
- Best
Selling Product Category: Collectibles
- Best
Time to Have Your Product Air: Weekends and Evening Prime Time
- Best
Selling Technique: Provide a good company sales person to work
with the show host
What
Happens On Air
- Product
isn't aired unless it's in "ready-to-sell" status
- Product
may be previewed at start of program
- Amount
of time allotted for product presentation: 6-8 minutes, with
guest 10-12 minutes
- Real
time viewing of product dollar sales in "green room" by
vendor
- If
product sells out, usually that means that there is 2-5% oversell
Using
Televised Home Shopping as a Distribution Channel
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Strengths
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Weaknesses
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- Ability
to demonstrate product
- Personalized
sell vs. on-the-shelf sell
- Ability
to pre-read instructions for customer
- Helps
to sell products in retail stores and catalogs
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- All
products must be sent pre-packed for shipping
- Product
must be ship-able throughout the US
- Lasting
impression if demo fails
- Possibility
of return of unsold product
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Approximate
Product Category Margins
- Average
product margins are 45%
- Auto/Kitchen/Outdoor/Hardware:
45%
- Home/Gifts/Seasonal/Textiles/Furniture:
47%
- Collectibles:
68%
- Apparel/Beauty/Jewelry:
65%
- Food:
45%
- Music/Books:
37%
- Toys:
45%
- The
formula for retail margin is wholesale divided by inverted
margin (example: auto product $10 wholesale ÷ .55 =
$18)
Quality
Issues
- Product
must pass stringent quality standards in order to be sold nationally
- Product
must be able to pass drop test
- Product
must be properly labeled and marked
- Product
must be as described and minimally live up to stated claims
- Ask
for complete quality requirements prior to shipment of goods
Purchase
Orders
- Similar
to regular retail store purchase orders
- Read
carefully before fulfilling
- Payment
is usually 45 days after product is aired
- May
require televised shopping and Internet exclusivity
- Confirm
terms are as agreed to, i.e., percentage of return for unsold
merchandise, etc.
- Understand
and follow carefully quality and packaging requirements
More
Info on Introducing a New Product
- Visit
vendor web sites:
- QVC
Vendor Relations: 1-610-701-1000
- HSN
Institute/New Business Development: 1-800-436-1010
(eligible
product SIC codes)
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