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Supermarket C-Stores

  • 18-03-2009 4:07pm
    #1
    YellowSheep
    Registered Users, Registered Users 2 Posts: 384 ✭✭


    What is needed to become a supplier for a freeze dried smoothy mix, and an oriental spiced nut mix to a supermarket?
    Is it possible to have a trial period of my products on a shelve FOC?
    Any other things i should know about? Thanks Oliver


Comments

  • #2
    Bandara
    Registered Users, Registered Users 2 Posts: 3,282 ✭✭✭Bandara


    the problem your going to have is that the supermarkets will have very little interest in you if you only have a few small products. Its not worth the time and effort of their part

    maybe look at getting one of the marketing/distribution companies to distribute the product for you? they will already have an in with the supermarkets.

    As for trial period your going to find this hard as well, everyman and his dog is fighting to get shelf space in stores, its really really difficult.

    The first step would be to get your self in touch with the relevant buyers for each symbol group and attempt to get your products on their central billing register, you will then get the contact details of all their stores and will be able to walk into them and at least get the chance to sdpeak with the manager/owners to try get them to stock your product. (FOC is expected by the manager/owners, no one is paying for the first delivery of stock, they are doing you a favour taking it in - if it sells your in there for good.)


  • #3
    YellowSheep
    Registered Users, Registered Users 2 Posts: 384 ✭✭YellowSheep


    Thanks Hammertime


  • #4
    antoinolachtnai
    Registered Users, Registered Users 2 Posts: 9,815 ✭✭✭antoinolachtnai


    The problem is that it is unlikely to sell if you don't put the marketing behind it, or unless there is some compelling reason to actually buy it.

    That's the problem - how do you give it the 'lift'? Even the likes of P+G have a hard time getting something new to lift. They can convince someone to stock the product for 60 days, but if it isn't moving after that time, then there will be a problem, even for them. It has to be paying for its own shelfspace.

    So you have to figure out how to do it through getting people to taste it, or sample it, or whatever, and you have to make sure the product is actually available t those tasters at that time.

    Another approach could be some sort of health food store. You won't get anything like the volume, but you might be able to establish some sort of niche which you can grow from.

    Re smoothie mix, a critical issue is actually VAT, believe it or not. Fruit is zero-rated, but it may be subject to VAT if it is processed. A fully-formed smoothie is certainly subject to VAT (the same as fruit juice). I hear that the Revenue made a decision about this a few years ago.

    Whether there is VAT will have a critical effect on the margin that is available to the retailer on the product. So if you sell it to him for 2 euros ex vat, and he sells it for 4, and it is subject to vat, he only makes 1.30 (or so) on the item whilst if he doesn't have to pay vat, he makes 2 euros on the deal.

    A bunch of people have tried marketing fruit mixes before. It would certainly be worth talking to the big buyers.


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