Keys to Success - Critical Retail Buyer Sales Pitch Elements
Your products - Yes they will evaluate how it tastes and looks. Since you "know the food" we assume it tastes great so let's move on.
Suggested Retail Price - More commonly referred to as SRP. This is the price of your product without any discounts or sales. The retail buyer has price points for each product category and you have to be within this range. If you are too low of course you make less money AND if you are above the upper end SRP, there is too much risk for the buyer to give you valuable shelf space.
Lets get some advice again from Taste of Crete on the SRP deal breaker."We learned first hand the hard way the importance of having enough margin for a profitable line as well a reasonable SRP. We imported a line of lovely handcrafted jams as the Euro rose in strength against the dollar, thus squeezing our margins and forcing a higher price to the end consumer. Ultimately the line was not sustainable, especially in a recessionary climate where consumers have become more price sensitive." according to Esther.
Do your homework and perform what I call Research by Driving Around (RbDA). Visit a handful of stores and look for products that are similar to yours or departments where you believe your product has the best chance for success. Do a retail price audit of each brand and product that you believe the buyer will compare your new product against. If you are well below or above the range, you must reconsider how you are pricing and formulating your product so you get it back in line.
Gross Margin - Retail want to know the gross margin your product both in dollars and in percent. When the buyer asks you "what is your gross margin" almost always they want the percentage number and you absolutely must know this number by heart.
How do you do your homework here? This is a bit more difficult and you can eventually find out an approximate Gross Margin % requirement or range by performing Research by Driving Around. Be persistent - you will eventually find a friendly manager or team leader that will give you some guidance.
Are Solving a Consumer Problem?
Why do consumers buy? You're a consumer so why do you buy? Why we buy is either to solve a problem and/or to fulfill a need.
Can you succinctly point to a problem or a need your product fulfills? IF you can't do this in one sentence, STOP! This can be another deal breaker. One way to determine problems or needs is to look at consumer trends. This is not difficult when you consider virtually every media outlet is reporting on food daily.
My example is illustrating the strong gluten free trend in the food & beverage segment and you can easily research on Food & Beverage and specialty sites such as Gluten Free Cooking site here on About.com. I suggest you Packaged Facts' Food Shopper Insights survey reveals opportunities for food entrepreneurs , and Barbara, s Bakery focusing on product t growth by appealing to consumers with Celiacs to get a sense of the opportunity.
The increasing awareness of gluten intolerance and the subsequent need for tasty gluten free products is a great opportunity. If you are a baker and create a gluten free cake line and can make it taste pretty close to a wheat based dessert, you then have solved a problem for the growing population of consumers having some form of wheat intolerance, such as Celiac's disease.
So then here is how you are solving a consumer problem as well as a solving the buyers problem - [YOUR BRAND] gluten free desserts have a homemade look and taste that is the indulgent treat that customers with a gluten intolerance want! Additionally this customer segment understands they need to pay a slight premium for gluten free foods.
Retail Buyer Pitch Get Ready!
Pitching your new product to a retail buyer can be a daunting and demanding task. We will be helping you develop the 10 Steps Retail Buyer Pitch Get Ready! and get from Kitchen to Cash Fast!