I think I made a post along the way that detailed a bit more than I am about to on this topic - maybe do a search.

The concept of mom and pops has mostly vanished so it is *very* true that to get into the K-mats, Wal-marts and Blockbuster Videos (in the US at least) you need to have either a sub-distributor or a distributor in the supply channel or else you won't get too far. How to get them to handle your product can vary - you can sell the rights to someone who already has a market for the same genre. You can send out screening copies to sub-distributors looking to see if any of them will handle it. Or you can try to go direct to the stores...but really even if the stores buyer loves it they would still have to go through their main buyer and then they would only purchase via an authorized vendor - which wouldn't be you.

But having said that - your product is music oriented so you may be able to find a back door in. Try some of the smaller indy lables. Try MVD - they pick up a lot of stuff although not usually instrutional in nature. Problem is that the music "how-to" tapes/dvd is now mainly done direct online. You can still find them in music stores but mostly you never see them advertised and marketed to most main stream stores anymore.

Have you tried selling direct to some of the larger music chains? Guitar Center? Sam Ash? How about Musicians Friend? Again, you have a niche product and getting larger Baker & Taylor/Ingram/VPD/LTD type distribution will be very hard.

EDIT/ADD - by the way, something that slipped my mind because it is brand new - the VSDA show just had a section that was for indy's to display their stuff. They tested it last year but this year I guess I would call it the first real year. What happenes is that indy film makers get a space to show their product and hopefully pick up distribution for it. It also allows people such as your self to talk directly to buyers from places like Wal Mart and studios reps as well. But you will have to wait until next year now and I am not sure if the ECVS has something like it. And this might be of high intrest to you - www.indiebuyer.net is a new website. Brand spanking new. Debuted at the show and it is a free service to match up product with buyers/stores. As it is free I would adivse you to list your product there and see what happens...you go nothing to loose, everyhting to gain. And because it was being hyped at the show it is fresh in the buyers minds.

I know very little about the specifics of this but here's my advice.
Unless you can sell the rights to a 3rd party and that means say a once off payment or a percentage cut on sales I'd stay well away from it.
My reason is simple, loss of focus in your business. Your current business model is probably working for you, not too much time is taken up copying, printing and delivering. When you start dealing with the big boys they just don't understand small businesses, they want to place an order for 1000 units and they want it tomorrow, so instead of you focussing on making the content which is where your talents lie you've got to worry about the mechanics supply chain management. If you can handle that I'd suggest a change of career path, good money to be had by those good at it.

Music shops would seem a much better approach, they're usually more independant and might be willing to take stock on commission. Somehow even if you got the stuff on the shelves in WalMart can you see that generating a lot of sales?

Bob.

Luxo,

I addressed some of these items within an earlier thread at http://mediasoftware.sonypictures.com/forums/ShowMessage.asp?ForumID=4&MessageID=280424

Having launched over 400 products into the reseller channel (Wallmart, CompUSA, BestBuy, Barnes and Nobles, Media Play, Target, plus "VARs") for over 150 vendors (Microsoft, Adobe, Aldus, HP, Intel, Sony, Canon, etc.), plus having published Netscape (they gave us the disk, my team did everything else), I can probably help.

I have an entire industry Website (www.chanimal.com) to help folks understand two-tier distribution and how to sell into and through the channel. I offer 90 minutes of free phone consulting to anyone before I start charging (usually companies, not individuals). You're welcome to call 512-947-7016 anytime.

What you are referring to is "wholesales" distribution. Retailers (software and music retailers) typically purchase from several large wholesale distributor. They do this since they carry thousands of SKUs (products) from hundred if not thousands of vendors (or artists) and they buyers can't place that many orders to keep their shelves stocked. Instead, they use a few major distributors and their order entry is often automatically linked to the distributors databases. Ingram Micro is the world's largest, followed by Tech Data, Merisel, etc.

Some distributors carry almost everything, while others are highly specialized (Douglas Stewart caters to the educational market, etc.). By ordering through distribution, retailers give up a few "points" (similar to %margin) to pay for the convenience. These points (and "MDF"-market development funds and/ or Co-op (additional percentage based on volume merits)) are what keep distributors in business (very low margins but incredible volume). In addition, the retailers can use the distributors to float their cash flow (they purchase on 6 week terms and hope to sell their inventory and get paid (plus their margin) before the accounts payable is due). When you consider how much inventory is even in a small music store, you can see the value of cash flow.

To find out which distributors to pursue, you can contact a few of the retailers you want to be in (ask for the DVD buyer) and ask them which distributor they prefer. Then you can contact those distributors. It is important to note that "distributors" do not promote your product per se--they are fullfillment warehouses. They stock it, but you still have to contact the retail buyers and convince them to purchase your product--they then order
the product from the distributor(s) you have sold into. Retail is also risky--since most products are actually more on consignment (not called that, but it works the same way). If your product doesn't sell, then the retailer can send it back (at least a %, depending on the clout of the reseller). If distribution can't sell it elseware...they send the whole pile back to you (you pay shipping)! Nothing is more exciting that having a semi-truck pull up outside your house with a pot bellied truck driver saying, "Where should I dump this ..." :-)

Fortunately, there is some good luck. You could find smaller DVD distributors that will take your product in small batches (even Amazon will do that (they have their 55% (they stock and they ship) plan and their smaller percentage (6-8% ? can't remember) where you stock and you ship (they make a cut--but take no risk). Since these distributors typically sell into niche markets (i.e., the drum DVD market), they may be excited about your product.

The other advantage of distrubutors is they already know which resellers buy your type of product. They can do mailings (but you pay). There may also be drum/music store wholesale catelogs you can get into.

Another approach is to find a publisher. I was a software and book publisher when my team launched Netscape (they didn't know anything about two-tier distribution (you sell to distributors, who sell to resellers, who sell to customers (two tiers)), nor did they know the value of what they had (they were giving it away for free). We gave them a VERY "small" percentage and the rest was ours--we made all the money...but they got the killer IPO (we should have taken stock). AOL retail product (was a #3 best-seller), Internet Phone, and most PC games use this publishing model. Unlike distributors, publishers do promote--or at least should. You can guarantee it within the contract if you know what you are doing. You may check with local drum stores to find who they buy from and then look the companies up--you may find a good publisher to work with that wants fresh content.

By the way, I was also an entertainment publisher (books, CD's, theater movies, videos and animations) for seven years--competed with Disney and Hanna Barbara and the distribution system is the same as software--just different distributors at times (but some of the exact same retailers).

You can also try some commissioned rep firms. Go to Chanimal, look for channel sales/marketing and look for rep firms--most of the good ones are listed--if they can't help, they know who can since they often cross-sell into each other's markets.

Between this and the earlier referenced thread, you should have enough to get started. You are welcome to call or e-mail (see website (on bottom)). Also, hit Chanimal.com--it has been around for over 9 years and has over 250 pages of similar information.

As a side note, I am a drummer for 32 years and would love to swap consulting or one of my videos (my latest is about how to finance a high-tech startup (www.chanimal.com/video)) for a copy of your drummer DVD--let me know if you want to do a trade.

I hope this helps.

Ted

Thanks for taking the time to offer so much advice guys, especially you Ted. I will look over your suggestions with my partner, check out Chanimal.com, and perhaps give you a call.

Just out of curiosity, how did you sell it on Amazon, I was looking to do something similar and was wondering how to get your product listed on Amazon.