What are some of the tools you need to enter the Retail Marketplace?
Weekly, we are contacted by companies seeking our wisdom and experience to assist with their “next steps” in the growth of their companies. With each of these conversations I ask the same questions and, ultimately, I receive the same incredulous reaction…”Really, we need to do that?”…”YES!”
So here is a list of things, in no particular order, that a producer needs to offer at a minimum to retailers or distributors for broader, successful distribution. These are some of the requirements of the marketplace.
- Ample inventory, readily available for a two week order turn around.
- Minimum four (4) 1/4ly promotions of at least 15%. A total of 16 weeks annually.
- Free fill. Most retailers and distributors require at least one free case per store of each SKU being brought in. Not all but many do.
- Slotting– While this may not be required at all retailers there is a trend toward 100% of RETAILERS requiring some sort of allowance. The amount can be from $15.00 per SKU/Store to more. Average is around $25.00 per SKU/Store. Some distributors are also asking for slotting. Free fill can be an option and is typically not in combination.
- Demos– Not for every product at every store but often requested by retailers. Average cost $135/demo. You often need to use their demo people!
- Brochures and price lists– Sounds obvious but a well-constructed price list and a clear product brochure are not always available. More paper is not better! Clear and precise is what we seek.
- Electronic brochures and Price Lists- The above ready to send out in a 1 MB or smaller file!
- A clear branding strategy- How does a customer or consumer know what your product is about if you have not articulated this!?
- Sales data– What are the best sellers? How do we grow your business? What products do we feature?
Food Show participation and marketing budget- Many distributors require participation in their company shows. Many retailers require ad dollars.
You need to understand the industry and know its requirements. You only get one shot at a first impression! Our goal is to help you navigate the slippery roads that often result in tragedy. We believe that KNOWledge is the key to our mutual success! We are here to navigate for you. Let our experience be your success!