Distribute Product to Convenience Stores
This site will tell you how to distribute your product to convenience stores. Our national distribution network specializes in distributing new products to independent convenience stores and grocers. Since 1989 we have been growing our network across the United States and Canada, we have learned the best ways for you to get your product distributed to convenience stores nationwide. We have broken our best tips down below for your convenience, and when you are ready to start selling, give us a call 1-800-367-0076
1. Start with the right questions) Before you distribute your product, you need to ask yourself a few questions. Do you need to build demand for your product, or is there already a demand for it? Do you know that Sysco would be interested in representing your product? If you can strike a deal with Sysco, can you handle the production volume? Do you want to sell directly to Sysco, or do you want to sell direct to stores?
2. Be prepared to profit) Does your product offer enough of a profit margin? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check Sysco’s guidelines for other fees that you will have to build into the cost of your product in order for you to be able to turn enough of a profit to make the effort worth your while. If you work with a discount retailer, they will seek to trip your profits down to zero in order to keep their prices as low as possible.
The typical breakdown of margins are: If a products costs $1 to produce, that product will retail for $4. That product that retails for $4 will wholesale for $2 to distributors and stores that purchase direct. Big box retailers may offer to pay $1.25 to the manufacturer if the product costs $1 to produce. That is the typical profit margin.
3. Anticipate the need for increased volume) Having your product picked up for distribution will most likely mean a significant increase in volume. You should be prepared to ramp up your production and informing your manufacturer of this opportunity.
Having production, logistics and distribution to sync is not only difficult, it requires a significant amount of time invested in customer relations. Also, Sysco may have stipulations in the contract that may penalize you for delays in shipping and production. Have an attorney explain all contracts to you if you don’t understand the terms.
4. Submit your product) Decide whether it will be you or a representative submitting your product. If you want to take your product to the next level, you must submit your product for distribution.
(est. time 3 minutes)