Price point approach verses Partnership
Three components to a true partnership: Pricing, Product Quality, Sales Support
As a manufacturer/entrepreneur, if it’s your desire and goal to launch into foodservice distribution, be prepared to bring value to the table. Are you offering an innovative, trending item? Does your product reduce labor for the operator? Is your product competitively priced? Do you have a higher quality or clean label product? What value are you providing to the distributor and the operator?
It’s also very important to come prepared. Know up front what the distributor’s priorities and expectations will be as this plays an important factor in your overall pricing.
- Payment Terms
- Earned Income – aka: PA’s (Program Allowances)
- Corporate promotional participation
- Sales support/Market share
- Private Label capabilities
- Distributor exclusivity
- Supplier incentives
- Sample program
- Routine strategic meetings between Distributor CM and Supplier
Additional potential expenses associated with some Foodservice Distributors:
- Lumper fees
- Brokerage fees
- Local promotional participation
- Fill rate penalties
- Private label plate and packaging expenses
If you are interested in learning more about successfully launching into Foodservice, Grow Foodservice would be pleased to apply their decades of expertise, starting with a no obligation introductory call.
