How To Get Into Giant Value
Founded in 1923 when David Javitch opened a small meat market in Carlisle, Pennsylvania, Giant Food Stores, LLC is an American supermarket chain that operates stores in Pennsylvania, Maryland, Virginia, and West Virginia.
The retail chain operates under the Giant and Martin’s banners. Giant is a subsidiary of Netherlands-based Ahold Delhaize, which also owns similarly-named Giant Food of Landover, Maryland, often known as Giant-Landover; to distinguish from that chain, whose stores also operate under the Giant banner (albeit with a different logo), Giant Food Stores are often referred to as Giant-Carlisle or Giant/Martin’s. A significant difference between the two chains is that Giant-Landover is unionized while Giant-Carlisle is non-union, with the exception of stores in Lewistown and Burnham, Pennsylvania.
The supermarket business in the United States is one that tries to connect with the individual customer. This means, the supermarkets try to address the needs and interests of individual customers. This is by offering local, international, and metropolitan products. You can get spices, meat, wine, food, and so many other food products from this type of store.
Customers have reviewed this retailer on line. Here is what a customer have to say on yelp.com about the store: “I love this store … They have excellent produce, including a good selection of organic foods, produce and otherwise. You can get in and get out quickly and the staff is generally good, with some very good and friendly. When I moved close to this store I assumed I’d prefer Wegman’s and Whole Foods, but both are further away and Giant is perfect for my everyday shopping needs.”
Another customer noted that: “I shop here a few times per week, mainly because it’s closest to my home. Overall, I am satisfied with this supermarket. Their produce is fresh and their selection is large enough.”
For a distributor, this is an established store that can get your products to move as fast as possible. With the awesome varieties they offer and the established customer base, it can be easily deduced that there are customers already dedicated to what they sell. With a loyal customer base and new customers every day, it is highly profitable to get into business with this kind of store.
On the local sourcing of food products, Giant Value has been on the forefront of selling locally sourced food products and imported food items. Their wine, spice, and produce selection make them a leader in the retail and grocery business niche. This store has been in the business for years and has its established sourcing angles. Its constant support of local products has helped it cement its brand in the community as people can easily resonate with it.
How to get your product into Giant Value
- Understand you client: Before you spend a lot of time and money creating a product, you should know if anyone will want to buy it. Learn more about Market Research
- Learn if it’s protectable: Know if you can defend your product against cheap copies if it gets knocked off. Learn more about Copyright and Patent your product
- Test your product: Make sure that there’s a demand for your product and the customer understands what you are selling when it’s on the shelf and nobody is there to explain it. Learn more about Product Testing
- Perfect your pitch: Before you speak to decision makers, know your numbers, know your retailer and know your logistics in and out. Learn more about Pitching Your Product
- Don’t do it alone: If you haven’t been successful in retail before, a secret of success is that you can’t do it alone. Having great sales staff, customer support and marketing partners can take you from zero to success faster than if you tried on your own. Learn more about Retail Partnerships
Contact Giant Value Buyer
Do not trust any “list” of buyers.
Typically retail buyers change either companies or positions every few years. This strategy helps retailers know that their buyers are not taking “kick-backs” and are selecting the very best product for the very best position each time.
Buyers are typically held to a very rigorous standard of sell-through volume that they must hit and because of this they are risk averse. Your job as a supplier or vendor is to convince them that the buyers going into the stores not only know about what you’re selling but are actively seeking the product in the store currently.
How to Submit a Product to Giant Value
There are several ways to get a product placed in Giant Value. However, most entrepreneurs only dream about getting their product distributed to major retailers, few actually do it. We have experienced a significant rise in interest since the show Shark Tank started airing on NBC. Mr. Checkout has had the pleasure of working with a few Shark Tank success stories such as KISStixx and 180 Party Cups which are now currently being distributed around the country to stores like Walmart, Target, Kroger, 7-Eleven and more.
If you envision your product would be a good fit for Giant Value, we have a few steps to help you get your product on their shelves.
Here are the 6 steps you need to take to have your product placed in Giant Value.
1. Start with the right questions.) Before you try distributing your product to Giant Value, you need to ask yourself a few basic questions. Do you need to build demand for your product, or is there already a demand for it? Do you know that Giant Value would be interested in selling your product? If you can strike a deal with Giant Value, can you handle the production volume? Do you want to sell directly to Giant Value, or do you want to license your product to a manufacturer that will handle distribution?
2. Be prepared to profit.) Does your product offer enough of a profit margin for Giant Value? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check Giant Value 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 try to strip 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 like Giant Value may offer to pay $1.25 to the manufacturer if the product costs $1 to produce. That is the typical profit margin.
3. Determine if Giant Value is the right store for your product.) The relationship between you and Giant Value starts with you browsing their store for competing products. If Giant Value already has a similar product, it is going to be very difficult to get your product picked up. Spend some time at your local Giant Value to see what kind of products they are selling, speak to the manager and see if he thinks your product will sell well in their store. Picture in which zone your product would best fit on the shelf and keep in mind that the most precious asset that these big box stores value are their shelf space. Keep this information in mind when you are preparing your presentation to Giant Value.
If your company is minority or women owned, check Giant Value website and see if they offer specific opportunities for those designations.
4. Pitch your product to Giant Value.) Decide whether it will be you or a representative to present your product to Giant Value. Your presentation depends heavily on your strengths as a businessperson as they will most likely ask financial questions and logistics questions.
It’s common for companies to hire a broker to pitch their product to Giant Value, as it will be more likely that your product will make it to the next stage if the individual pitching your product has industry knowledge or a personal relationship with Giant Value. The percentage of commission verses, however generally a broker will take around 5% to represent your product to Giant Value.
We at Mr. Checkout have experience dealing with brokers and know that there are several retail brokers that have poor business practices that can potentially damage your brand. If you are seeking a legitimate Giant Value broker, please give us a call for a recommendation. It could save you a huge headache and a lot of money.
5. Complete the required Giant Value paperwork.) Often Giant Value will have you go through an application process. However, before submitting the paperwork required by Giant Value, you should contact a buyer at Giant Value and let them know your intentions. Having a contact inside of the company will potentially move your application more smoothly through the process.
6. Anticipate the need for increased volume.) Having Giant Value agree to stock your product 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, Giant Value 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.
If you’re looking to sell your product to Giant Value, be sure to thoroughly assess the marketplace, carefully prepare for production growth, and take full advantage of resources available to help you grow your business.
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