Actionable tips to negotiate better shelf placement for your goods

When you execute a retail strategy for your product, it’s important to understand how much shelf position matters. Here's how to negotiate a better placement.

Getting your product into the grocery store is only the first part of the battle. That alone is no guarantee it will sell and make a decent profit. You also need to negotiate shelf placement to ensure your product gets the visibility it deserves.

When a retailer agrees to sell your product in their store, it doesn’t automatically mean you’re going to get prime shelf real estate. For example, if your product is to be placed on a lower or higher shelf, it likely won’t get nearly as much attention as it would on or near the middle shelf.

Understanding the importance of shelf space can mean the difference between a successful product launch and a failed one. That’s why it’s so important to negotiate better placement at the outset and, in doing so, come to a win-win arrangement with the retailer.

Here are proven tips you can try right away to negotiate shelf placement more effectively:

#1. Be prepared to make a long-term commitment

When you’re negotiating better shelf placement, you’re not just selling a product – you’re also building a mutually beneficial partnership. If your product and pitch are compelling enough, a retailer will be far more likely to give your product maximum visibility, thus boosting sales for the benefit of both parties.

Since you’re selling a partnership rather than a product, it’s important to think about the longer term, and that means building trust. One proven way to do that is by presenting a sophisticated marketing campaign and insights into your target customer. If you can show a potential retailer the best marketing fit for your product, they’ll be much more likely to give it prime shelf space.

#2. Determine which needs you can fill for the store

When you negotiate shelf placement, you must think from the perspective of the retailer. That means emphasising with their needs and understanding how your product would fit with their own goals and strategies. For example, perhaps there’s a gap in their inventory that could be filled by taking on your product.

You should communicate regularly with your retailer on an on-going basis. After all, their needs will evolve, as will your own. You also need to prove that the demand exists for your brand and product. If, for example, the retailer already has an abundance of competing products, it may be much harder to convince them how you can fulfil their needs.

#3. Consider co-branding for better product placement

Co-branding is becoming increasingly popular in the CPG sector, where multiple brands are working together by offering products that complement one another well. Some examples from recent years include Starburst-flavoured Yoplait yoghurt, and Coca-Cola-flavoured Tic Tacs.

Co-branding is a great way to increase brand recognition, especially for smaller brands looking to make an impact. When negotiating shelf space, having one or more co-branding partners on your side can greatly improve your credibility.

#4. Drive growth through better sales and marketing

Every retailer wants proof your product will sale, should they decide to put it on their shelves. In addition to providing data-driven insights and documentation of previous sales performance, you should also provide a solid strategy for how to market your product in stores.

Effective ways to do this include providing coupons and discounts, executing field marketing campaigns, and training salespeople on selling your brand and product to retailers. You can also suggest product pairings (with or without co-branding) to promote impulse buying of your product.

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