WPT
WPT
WPT

Retail Test FAQs

How much do I need to sell in order for my test to be successful ?
There is no standard answer to this question. There is no set number of units to be sold nor is there a set dollar amount which indicates a successful test. The reason is that success is determined by measuring a test product against other products in a product category or subcategory. e.g. The weekly quantity sold of printing paper is higher than the quantity sold of printers.

What percentage gross margin does a retailer make on my product ?
The percentage gross margin varies widely by category and subcategory of product.

Should I set a high price for my product ?
You should set the price of your product sufficiently high to cover the profit you require plus all the costs you will encounter including all freight and an allowance for returns.

What happens if I set my price too high ?
If your price is too high a retailer may refuse to test your product. Or it may perform poorly in test.

Who determines my product's retail price ?
The retailer determines the retail price of all test products. With some buyers you may suggest a retail price and a retailer might suggest the necessary cost to support that retail price.

Will I receive my samples back ?
No.

Can I pay the test fee by deducting it from the payment for my product ?
No. The test fee must be paid up front. No product or forms will be presented to a retailer without such payment.

Do retailers require merchandising or advertising money to be spent in support of a product even if it tests well?
Frequently, yes, but not always.

Will I be paid for the product I test ?
You will be paid only for the test product that is sold by the retailer and which is not subsequently returned.

What are WPTs payment terms ?
Test product will generally be paid for 120 days after it is shipped to WPT's warehouse.

Why are the payment terms 120 days ?
WPT is paid in 90 days by the retailer. This period gives our detailers time to set up test product in each retail store and for the test merchandise to be sold for a period of 6 weeks. Subsequently the product must be taken off the shelf, shipped back to you, invoiced to WPT, charged back and paid for by the retailer. Payment to you is made after payment is received from the retailer.

Are the payment terms ever longer than 120 days ?
Yes. Occasionally a test may be extended for good reason in which case payment is also extended. Very infrequently some product is inadvertently not returned promptly to you by the retailer. WPT track sales and inventory to advise retailers when this occurs. However, payment is not made to you for test product that has been removed from the shelf but has not yet been returned. Every effort is made to prevent this occurrence and to effect prompt payment. Payment is not made for product that is the subject of a returns dispute until the dispute is resolved usually by submission of proof of delivery.

Can I negotiate the price of my test ?
No. However, there are rare cases when several SKUs might be considered as one e.g. the same product might be sold in several colors etc. Moreover a very large test involving many SKUs might be discounted.

Is a buyer required to meet with me after my test ?
No. Buyers may contact you but are not required to do so. You will receive a written response to your test results either from the buyer or the Test Coordinator.

Can a buyer refuse to test my product ?
Yes. A buyer may refuse to test any product without supplying a reason. This very rarely happens. Your test fee would be promptly returned in this event.

Can I test in more than 10 stores ?
Retailers generally test in 10 or 20 stores but will test in more stores on occasion.

Can I change my product's cost in mid-test in order to effect a change in price ?
Mid-test changes are greatly discouraged. Any change in a test product's cost / price during a test can be made only with permission from the Test Coordinator and will incur an additional charge of $1,000.

Can I use a special display unit to test my product ?
Generally, No. However, small display units where appropriate may be approved at the sole discretion of the Test Coordinator.

Can I use special signage or other types of merchandising to call attention to my product ?
Generally no. Products in certain categories are merchandised by the retailer's own Fact Tags which list product features or specifications e.g. computer monitors.

Can I offer coupons or other buying incentives to promote my product ?
Generally, no. Retailers do not test items on promotion unless a promotion is considered part of the regular price e.g. a mail in rebate.

Can I test more than one price or one other variable ?
Generally, yes. However, each price or other variable will be tested in 10 stores and a test fee will be charged for the second price or other variable as if it were a second SKU.

For more information click here to contact us or call us at 508-580-3300.

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WPT, Inc. • 20 Minuteman Way • Brockton, MA 02301
508-580-3300 voice • 508-580-3993 fax

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