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!
As a general rule of thumb, you want to approach early adopter type folks. They're the ones that are willing to invest the time to understand your product and make early concessions to see it come to reality.
Usually I get them to commit at my cost, but pay up front and if I don't deliver, then give them their money back. Also, make it exclusive, that your only signing X amount of these early adopter agreements.
Give them a reason to take action today.
Again, don't forget to qualify if their early adopters / they're the best kind to get involved - sometimes smaller, but way more engaged and will help you learn faster.
Answered 11 years ago
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