Dreaming of Dollars:
Hitting or Hating the Big Time With QVC

by Melissa T. Stock

Although the "C" in QVC doesn't stand for couch, it very well could. While shopping via the World Wide Web still means that people will most likely have to get up from their Lazy-Boys, walk to another part of the house, and turn on their computers before they can begin to buy, QVC, since 1986, has made it so that the only exercise necessary to shop is a thumb-to-remote-and-finger-to-phone motion. Twenty-four hours a day, seven days a week, 58 million U.S. households tune their televisions to the shopping channel to buy, buy, buy. And it is the dream of rapid sales, as well as the opportunity to expose products created with much blood, sweat, and tears to literally millions of potential customers, that is irresistible to inventors, marketers, and manufacturers from around the world.

 

From Early Bird to Night Owl

With the stock market booming and the average American wallet open more now than in recent history, the art of shopping has grown to a national pastime. Whether it's 3 a.m. or 3 p.m., you can buy anything through QVC, from electronics and caulkers, to housewares and exercise equipment, to cosmetics, clothes, books, gadgets, memorabilia, music and more. According to QVC public relations person Robyn Blane, a staff of more than one hundred full-time buyers comb the world to present 1200 products on the air each week, 200 of which are new product launches. Not surprisingly, one of QVC's most popular segments is the Local Flavors Tour, where they fire up their 53-foot-long mobile kitchen and hit the road to visit food festivals, regional cooking events, roadside stops and the country's hottest restaurants to host live broadcasts featuring a veritable smorgasbord of regional products, innovative cooking tools, secrets of celebrity chefs, as well as many a fiery food. The tour has been on the road for eleven years, according to Blane, who paraphrased actor George Clooney when asked to describe the pressure of producing so many live broadcasts. "It's like watching a car race like the Indy 500; people are there to see the crashes," she said. Tornados, lightning storms and monsoon rains are a few of the "crashes" she listed that have occurred during the live segments, many of which were held outside.

But as the saying goes, the show must go on, and it does. Blane explained that QVC has stringent procedures in place so even if the live feed is lost, the host back in the studio can pick up where the demonstrator left off and competently present products to the viewership. She acknowledged that in a perfect world, disasters would never happen and manufacturers would always get their six to eight minutes on the air. However, when things begin to fly, QVC personnel do the best they can, and attempt to offer the manufacturer a chance to come on air again at the end of the show if the feed is resumed--even if the studio host has already presented the product.

 

The Road To QVC

Presenting a product on the show, however, is probably the easiest part of the deal. All products go through a stringent evaluation process before they are ever chosen to participate. Blane emphasized that QVC is extremely particular and very cautious. "We work with companies of all sizes, from small to large. Good product is the key, but packaging, as well as shipping procedures, are equally important," she said. "For example, we had a product that we really loved and thought would do very well. Unfortunately, three out of the five times they shipped us product, it arrived broken. Because of those problems, we didn't do business with the company." QVC obviously has a pretty good handle on what its customers like after twelve years of record sales. Two products familiar to many in the Fiery Foods Industry that made the QVC cut are Buzzard's Best Sauce, a hot and spicy product for chicken wings and other things, and Mrs. Dog's Mustards. While both participated in renditions of past Local Flavors Tours, each company experienced very different results.

 

Big Time Boom

Clearly, QVC has many a rags to riches story, where a little known company launches a product on the show and sells millions of dollars worth in just a few minutes. Who would have ever guessed the success of Riddex, a gadget that plugs into a household electrical outlet and rids a home of insects via the electrical system, would have sold $20 million worth of product in two years? Or that literally millions of viewers would have wanted an onion bloom maker? Since QVC pays for all of the shipping costs associated with the products, including manufacturer shipping to the QVC warehouse and shipping to the customers, QVC, as well as the manufacturer has a great financial stake in whether a product sells well.

Gail McCall, owner of Buzzard's Best Sauce, described her experience with QVC as nothing short of phenomenal, and said that it launched her business to the next level.

According to Gail, her company sold 3600 three-packs of sauce after their first time on the show in late 1997. Since then QVC has made three other large orders. "We figured that it would be a one time shot. The folks at QVC said that the product did so well that they featured it again and again!"

While Gail explained that she had heard all the horror stories from other manufacturers before she went on the show, she admits that jealousy probably played a small part in some of them. However, she said, it was well worth the risk, and besides, she was convinced that the people at QVC knew what they were doing, not only because it is their specific business, but because they also lose if a product bombs. "It costs money for them to do this, too. I don't believe they are going to take a risk on something that won't sell."

But the risk is highest for the manufacturer, who can expect to spend a minimum of $10,000 to $15,000 on packaging and product development before even one jar is sold. For Gail that meant taking on a private investor and working around the clock to fulfill orders. "I was asked how much I would take back if it didn't sell, and I told them I would take it all back. "That was scary," she said, "But you have to believe in your product."

 

Of Death and Taxes

Most anybody will agree that the only guarantees in life are that everyone will eventually meet up with the taxman and the Grim Reaper. Julie Applegate had one other thing on her life list of absolutes: QVC equals success.

As the owner of Mrs Dog's Products, Inc., Julie had created a host of unique and popular products from mustards to jerk sauces. In 1996 her product was chosen to be featured on the America's Best (a precursor to the Local Flavors Tour) segment of QVC. "I went through two interviews in Detroit, and my Mrs Dog's Sampler pack was chosen." According to Julie she jumped through all of QVC's hoops, including having special boxes designed and made, and following all of the packing and shipping rules that filled a two-inch-thick manual. She had to guarantee 1100 sampler packs, which meant 3300 bottles, labels, special boxes and packing materials, not to mention all the ingredients which had to be co-packed. "I figured it would be a sure thing, so I didn't hesitate to put thousands of dollars of expenses on a credit card, knowing I would recoup my expenses and much more shortly."

Julie's big day came in August, but luck wasn't with her. During her on-air time slot, QVC lost the live feed for twelve minutes. She says that when they attempted to put her on again at the end of the show, they lost power again. Out of the 1100 units she so lovingly and expensively prepared, only 325 were sold--not nearly enough to cover her up-front expenses. "I have learned that there truly is no such thing as a sure thing," says Julie. While she says she finally got a bank loan to pay off the credit card, she is adamant that she will never do QVC again. "You never know what could happen."

When asked about Mrs. Dog's experience, QVC's Blane was surprised to hear the story, but was quick to agree: QVC will do everything possible to help make a product successful, but offers no guarantees.

Points to Consider Before Submitting Product to QVC

Tips From QVC: How To Submit a Successful Product

TO SUBMIT YOUR PRODUCT TO QVC, CALL THEIR VENDOR RELATIONS DEPARTMENT (610) 701-8330.

The product should grab the eye and be colorful and exciting.

Packaging is everything. A great product without a good label won't make it.

All materials should be well packed. Broken bottles are a sure way to disqualification.

Tasteful product names are key. Suggestive or bawdy product lines will be not be considered.

A good story behind the product is very helpful. Everybody loves a good story, says Blane, and it works well with television. Make sure you send well produced materials that tell your story.

Tips From Buzzard's Best

Don't be stingy with your product. Gail says she gave a jar of her product to every buyer she met at her interview, and had lots more on hand in case they needed more to make a decision.

Be willing to take suggestions about your product, especially in terms of packaging.

Don't be afraid to call and ask questions. Gail found the folks at QVC to be very accessible and helpful.

Tips From Mrs. Dog's

Be aware that you will spend thousands of dollars up front which may not come back to you. Make sure you can take the hit if QVC doesn't work.

No matter how good your product is, there are no guarantees.

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