How To Get Into Macey’s Market
Whenever the State of Utah is mentioned or heard by an average American, what comes to mind is Mormon. One cannot exactly say they are wrong. The reason for this is that approximately sixty-two percent (62%) of Utahans are reported to be members of The Church of Jesus Christ of Latter Day Saints (LDS Church), making the State the only State with a majority population belonging to a single church. As matter of fact, the headquarters of the church is situated in the State in Salt Lake City. The State was, in 2013 estimated by the U.S Census Bureau, to be the second fastest growing population of any State. Urban development in the State is mostly concentrated in two areas: North Utah’s Wasatch Front with over 2.5 million people; and Washington County in Southern Utah, with over 160,00 residents.
As usual, the best place to do business is a place with a high concentration of inhabitants. It is such a place that grocery store chains flourish. It even gets better because the state is a center of major tourist destination for outdoor recreation and in 2012, a Gallup National Survey found it to be the “best state to live in” based on 13 forward looking measurements including economic, lifestyle and health related outlook metrics.
It was in such a beautiful State that Macey’s Market decided to open business and it has been doing business there for close to seventy-two years. The company was formerly known as Save a Nickel Market and currently operates as a subsidiary of Associated Food Stores, Inc. Macey’s Inc. operates grocery stores and pharmacy services. Its stores offer meat, deli, diary and baked products. They also render pharmacy services such as prescription, flu shots, prescription management, immunization and vaccines, as well as pet medication services.
The Utah based grocery store Macey’s has been making expansion moves with new sites and locations in different parts of Utah. The newest location was opened in Millcreek, Utah. The Utah based grocery store is really looking to grow and change the grocery shopping narrative in Utah. According to the district manager for Macey’s, it is looking to change the way shoppers think about grocery shopping. This, he said they have done by adding “a Variety of new products and offerings, including an in store restaurant and online shopping, and we can’t wait for our guests to experience it”. Also in a bid for expansion and customer satisfaction, Macey’s has broken an over 70 years old tradition. It has opened five of its locations for Sunday operations. This move was to the end that they meet the changing demands of their customers and for growth. Although a large percent of employees isn’t happy with it, the vice chairman of Macey’s believes the store policy has to evolve to meet the demands of customers.
If you want your product on the shelves of a growth oriented store poach Macey’s. Simply contact rtmickelson@afstores.com for more information and enquiry.
How to get your product into Macey’s Market
- 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 Macey’s Market 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 Macey’s Market
There are several ways to get a product placed in Macey’s Market. 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 Macey’s Market, 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 Macey’s Market.
1. Start with the right questions.) Before you try distributing your product to Macey’s Market, 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 Macey’s Market would be interested in selling your product? If you can strike a deal with Macey’s Market, can you handle the production volume? Do you want to sell directly to Macey’s Market, 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 Macey’s Market? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check Macey’s Market 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 Macey’s Market 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 Macey’s Market is the right store for your product.) The relationship between you and Macey’s Market starts with you browsing their store for competing products. If Macey’s Market already has a similar product, it is going to be very difficult to get your product picked up. Spend some time at your local Macey’s Market 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 Macey’s Market.
If your company is minority or women owned, check Macey’s Market website and see if they offer specific opportunities for those designations.
4. Pitch your product to Macey’s Market.) Decide whether it will be you or a representative to present your product to Macey’s Market. 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 Macey’s Market, 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 Macey’s Market. The percentage of commission verses, however generally a broker will take around 5% to represent your product to Macey’s Market.
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 Macey’s Market 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 Macey’s Market paperwork.) Often Macey’s Market will have you go through an application process. However, before submitting the paperwork required by Macey’s Market, you should contact a buyer at Macey’s Market 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 Macey’s Market 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, Macey’s Market 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 Macey’s Market, 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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