How to sell your food to Supermarkets Part 6-10
Case pack pricing is the sixth item on the list.
What exactly is it? Damien, I'm a newcomer to the world of culinary entrepreneurship. What exactly does this mean? Because of this, the retail retailer wants to know whether you'll be selling a case pack of 24 pieces. What is the cost of transporting the product to the retail store? Okay. Recognize your expenditures in producing that actual case pack of 24, and then determine what your markup is at a wholesale pricing point so that the retail store may purchase it in large quantities.
So that they can then flip it around and have a margin for themselves, which makes our situation a little confusing for everyone. What does this phrase signify exactly? Bring it down for you, please. You have 24 units in a box, and let's suppose each one cost you $2 to create, which means you have $48 invested in that case pack of 24 units. So, how much is the case pack going to cost you in the end? What is the price range for that particular retailer? How much are you planning to charge them for your services?
So they're going to take that and say, "All right, that's fine." If something costs $48 and you add a $20 markup to it, you've now got a $68 price point for the item in question. As a result, the store will be forced to take the units out of the box, and they will know exactly how much to charge for each unit. And at that time, they can charge a retail price for the item. Okay. The case and pack pricing are required, as is the case and pack quantity (number seven in this list). I'm sure you'll understand. You've also determined that you'll have to come up with something. There's no way the store is going to tell Damien that he needs twenty more. I need to fill that box with enough items to make 24 units. You must ask them, "Hey, how much is it?" and then tell them how much it is. Is it packaged in a case? Is it a total of 12 units? Numbers 24, 36, and 37. At any given time, the increments are approximately 12 20, 4, and 36. That's something that happens all the time in the profession.
It is also necessary for you to know how much you will be packing in each box in the case pack. As a result, the quantity is quite crucial. Orders must be placed in increments of eight. As a minimum, are you going to establish that as an indication to the merchant, or will it be interpreted by them as a statement such as "Hey, you know what? When we manufacture this, we will produce at least 200 pieces at a time. That's the absolute bare minimum. Okay. To estimate your profit margin for all of those instances, as well as the price at which you wish to sell them, you must first determine your profit margin. You must also keep this in mind at this point. This is because, as previously said, hyper retail stores only have a limited amount of shelf space, which has a significant impact on the number of units that can be brought into any particular store. Suppose I sell 24 units in a case pack and the store responds, "You know what? You may keep the case pack."
I received a total of ten stores. I'll take one case for each store, and we'll put it through its paces together. Please provide me with 24 units for each store. And then they'll be able to place a few on the shelf and store a few in the back room and in the stock room. After that, they'll refill the stock as it sells. Okay. They simply understand that it is a new product, your new food, and that you are a food entrepreneur. You're a start-up company. They aren't going to order a thousand units for every store in the country, either. Okay. Obviously, if it starts to sell out and it is a hugely profitable product, and if they start selling like crazy, that is terrific. When they order a case, they'll most likely order two or three cases per store, but just be aware that when you first start out, they're not going to ask for a large number of units up front; instead, they'll want to test it out, just like they would with any other product.
Okay. With the exception of major corporations, this is completely different. So, step nine is to prepare a sell sheet, which is the final step. Okay. Damien, could you please explain what a sell sheet is? A sell sheet, on the other hand, is a salesperson for you. When you hand them a piece of paper that contains all of the information about your company, your case, pack, your case, pack, quantity, pricing, who to contact and email images of your goods, recommended retail, price, point, wholesale pricing, and so on and so forth, they will be impressed. They have a sell sheet. By the way, I'll be putting something down below this. However, we do not have sales sheets for the video I produced. It will be included in the description. When you've finished listening to this entirely, you can click on it to close it. And in this way, you can get a better understanding of what a sell sheet is and what goes into it. A sell sheet, on the other hand, is similar to that salesman.
The object in question is that individual, the object in question is a piece of paper. That will most likely be on the buyer's desk, or it will be sent to them by email. You may even send it by email. So, just as a brief side note and a little advice, that's going to be the thing that sells them after you've met with them for the first time. If you're just starting out and want to be visible at retail stores, grocery stores, and other food-related establishments with your food product, this is highly suggested. You do not make an attempt to contact a national chain. If your business is small and you only produce a limited amount, you should avoid going to the Kroger. The huge stores that are located from the east to the west coast are where the general public shops. Why? Because you do not have the necessary resources to fulfill the order. Let's just be honest about this. You don't have any. When you initially start, they're going to ask you a bunch of questions. Just imagine that they are thrilled with the concept of your product and want to purchase the 5,000 cases you are offering.
How likely are you gonna be able to create 5,000 cases containing 24 units in each case? Most likely not. That is extremely unlikely. So keep your distance from it. Shop at mom-and-pop grocery businesses in your neighborhood. These are supermarket businesses and grocery chains that are individually owned. They may have four or five, four or five units in your community, your city, or your county, depending on the situation. First and foremost, go to them, meet with them, and shake the hand of either the management or the purchaser. Whatever the case may be, whomever owns it is responsible. Go to the person who is in charge of bringing in new products and hand over a sample of your product as well as your sales sheet. That is, after all, the whole point. This is important to mention since it means you must bring this sell sheet and leave it with the buyer, as well as a sample of your product, and then advise them to contact you when they get a chance to try it out. Here's a copy of our sales pitch.
It is much easier to get into these stores than it is to get into a national chain and into their facilities and into their logistical system and their distribution warehouses, as well as all the other things that come with a national rollout of a food product. If you have any questions about it, please let us know. It is quite difficult to accomplish this. So getting into local stores first is going to provide you some momentum cashflow and obviously circulation of your product. Afterwards, when you get to that point and you say something like "Look, I'm with Kroger, let's call him Republican," or something along those lines, it's fantastic. You can probably guess what they're going to say. So, are you in the company of Damian? Do you happen to be in any stores right now? Well, you know, in the Florida area, we've got something like 30 different independent grocery stores that carry our products.
Wow. That is just wonderful. Is that all there is to it? That is extremely impressive. That is also a benefit for them in deciding whether or not to carry your goods in their store. Okay. After that, there's the delivery of number 10. What method do you intend to use to deliver the products? If you're going to produce it in a commercial kitchen, this is a very crucial issue to ask since you'll need to decide whether or not you'll rent out that commercial space to complete orders on a specific basis as they come in. In response, the grocery store down the street announces, "Hey, guess what? Damien, I require a total of 2020 units of the product. Fantastic. I'm going to rent out my commercial space, which is due on the 25th of this month, starting next week. Is it going to be delivered by me? Is it going to be shipped, or is it going to be picked up? Or, more specifically, how is that going to work? You must grasp the situation. You must also inform the supermarket chain of the delivery, informing them of the sort of delivery and the location from where it is arriving.
As a result, be aware of your delivery.