How Do I Get My Food Products Into Stores Using Grocery Distributors
A grocery distributor is a company that supplies a variety of stores from grocery stores to convenient stores with food and non-food products. Grocery store distribution companies often work with the store and food manufactures to determine which good they need, how much, and what will do best at that location. They do not want to supply a store with goods that will not sell as no one will be making a profit.
Many stores and distributors work with rack jobbers to help introduce new product to the stores. This is a great way for a distributor that already has a relationship with a store to introduce their new goods without either company putting up much of an investment.
Rack jobbers are vendors that rent space in a store, in this case a grocery store or supermarket. They then display and sell their goods from that rented space. It is a mutually beneficial agreement between the rack jobbers and the store that they are renting space from. The rack jobber which is usually a distributor of some kind gets to work with a store or company that they already know and can likely rent for a lower price than if they went somewhere new. The grocery store also benefits as they are displaying and selling new products that may not be available anywhere else. This is a great way to get new items from a wholesale company before they are sold at other locations and it can really drive up sales. Another reason why this type of relationship between rack jobbers and grocery stores can be beneficial is because the jobber is able to get the new product out there for a larger customer base to experience and the store owner does not have to worry about the inventory or restocking the item and they get to share the profits.
Distributors usually are rack jobbers and are distributing new product from larger wholesale companies. However there are some rack jobbers that make and manufacture their own items and then do the research to find a good location in which to rent a space. This is a common practice among grocery distributors and it requires market research and also entails the company figuring out how much of their inventory they should place at one location in order to make a profit. They also must negotiate with the store owner or manager to come up with an agreement and contract regarding the sharing of profits.