Questions

We are a startup. We developed cool new gaming accessory for tablets, ready for production. $99 RRP; gross margin 42%; Big Box distributor discount ~25%. We are now raising angel investment and want to "gain more traction" by providing LOIs for tens of thousands units for higher company valuation and increased chances of receiving funding. How should we approach distributors with a cold email? **Should we offer exclusive rights and under which conditions? **What discount should we offer and under which conditions? Any other feedback is also appreciated!

I'd avoid the cold email. The best way to get inside big companies like distributors is to "social engineer" a connection to someone there. Find a 2nd or 3rd degree connection on LinkedIn. Hang out at a restaurant near their HQ and look for people with the right badge on. Ask your potential angel for help connecting you. If they can't, they might not be the right investor for your company at this stage. Their investment should get you more than money, it should come with connections, advice and mentoring.

Basically, there's no easy way to do this and every situation is different but it's going to take a lot more than a cold email or phone call.


Answered 7 years ago

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