Tablet Accessory Maker Hopes to Land $30 Product at Walmart
A registered nurse in Springdale, Ark., is hoping her brainchild, a tablet PC accessory, becomes the first product to win aisle placement at Walmart as part of the retailer’s “Get on the Shelf” contest. A little like an “American Idol” for product developers, the contest will produce three winners, either an individual or a company, whose products will be voted in for sale at the largest retailer in the country -- one in stores and online and two online only -- following two rounds of voting beginning March 7.
Renee Anderson, CEO of Veyl Products, and her husband, James Anderson, chief financial officer, have been selling the accessory, a pillow for tablet PCs, since November 2010. Publicity for the contest has been somewhat low-key, Renee Anderson told us. “I don’t remember where I came across it,” she said of the contest, but she submitted the ePillow description in December, along with a video posted through YouTube, a requirement for submission. Anderson found out after watching “CNN Money” that her ePillow had been one of the first 60 products submitted, and began a PR effort to boost awareness for the product. Anderson sent out a press release Monday indicating she was “available for interviews."
Anderson said her company, Veyl Products, a woman-owned business -- Renee owns 51 percent and James 49 -- could ramp to volume production if they need to. She checked into that when she submitted the product to Target last year. When Target decided to “give it a little time” since the Andersons didn’t have a sales history, Anderson checked with her manufacturing company, MFI International in El Paso, and was told they could hit 100,000 pillows a month with 60 days notice. As a woman-owned business, she said she imagined it “wouldn’t be too difficult” to get a loan with Walmart as a customer.
The Andersons started the accessories business in November 2010 after Renee Anderson got an iPad and realized it was uncomfortable to hold for reading. She stitched together the first ePillow, using a fiber fill and a cotton cover laced with a suede wedge that keeps the tablet in place. She tested out the idea with the kids in her fellowship group and realized she had something when she kept getting requests to make more. She came up with the $29.99 price based on the reasoning, “What would I pay?” The Andersons launched the business with $40,000, and just over a year later, they've sold about 4,000 ePillows through their website, enough to “make back” their original investment, she said.
According to the contest website, run by @Walmart Labs, round one of voting will be March 7-April 3, with the 10 entries winning the most votes moving on to the second round April 11-April 24. The grand prize winner gets the “opportunity” to sell the product on Walmart.com and in Walmart physical stores and to be introduced to Walmart’s merchandising teams, according to contest rules. The grand prize winner and Walmart will negotiate on terms and if they can’t agree, Walmart will pay the winner $12,500. Two first prize winners will have the chance to sell their products on Walmart.com and will receive $10,000 from Walmart if they can’t come to terms, the website said.
In addition to meeting standard requirements for ownership, copyright, decency and safety, products submitted may not contain alcohol, firearms, cigarettes or live animals, Walmart said. Anderson wondered how Walmart would whittle down what she imagined would be a very large number of entrants to make the contest manageable for voters. Our questions to Walmart about contest procedures weren’t answered by deadline.