Glimpse reposted this
👋 Founder Foodbevy.com and Joyful Co. | Forbes 30 Under 30 | I help food and beverage founders grow from Startup To Scale. I help people and companies spread joy by sending meaningful gifts featuring minority founders.
💰 How expensive is it to work with National Distributors? Here are my real numbers -- Amount Invoiced to KeHE: $32,000. Amount Paid: $21,000. Difference: $11,000. That’s $11,000 in chargebacks, fees, and returned products from retailers. That’s 34% of everything we sold them, meaning we lost all of our profit margin and barely broke even. Suffice it to say, we stopped selling to them because it would put us out of business. Here’s my advice to emerging brands: 👉 I highly recommend working with regional distributors to build your business over the national ones until you’ve reached $5 million in sales. Most retailers have preferred regional distributors that would love to have your business. 👉Don’t let retailers purchase your product without having a marketing plan in place with them. The vast majority of fees ($8,400) came from products Jewel Osco purchased but returned because they didn’t sell the product. Why not? Our buyer left, and we had no contact. We tried calling Jewel HQ dozens of times, e-mailing everyone we could and even tried working through KeHE to get in touch with their team so we could run marketing plans to move the product off the shelf. Nada. No response. Once the returns started coming in we stopped fulfilling orders. 👉Track and Analyze your deductions. If you are selling with National distributors, use a tool like Glimpse to analyze and dispute deductions. Wednesday I'm hosting a webinar on how to manage deductions. Comment with your stories and let me know if you want an invite. #CPG #Foodandbeverage