How to get your product into Murphy USA Inc.
Murphy USA Inc. are a well respected chain of national Gas Stations and convenience stores. Founded in 2013 as a spin off from Murphy Oil; this gas station supplier made their money by very cleverly placing their gas stations in proximity to Wallmart stores. In fact, of over 1,400 Gas stations in 26 states – as many as 1,100 of them are within a stones throw of the superstore.Back in 2016, Murphy USA Inc. announced that it was buying all of its products from Core-Mark – so if you want to get your products known to Murphy, you need to go through their supplier. Core-Mark have had a long and turbulent history, but since the early 00’s they have been fairly steady. They are one of the biggest holding companies for fresh produce in the USA, and supply some 30,000 locations in the USA and Canada. They also provide all sorts of business related marketing, such as promotional goods and advice related to their products.Core-Mark supply a myriad number of products, all of which fall into three categories: You can heat and eat it, it is fruit or veg, or it is otherwise fresh food. They have innovative delivery vans that operate what they call a “Tri-Temp” system – meaning that they can transport hot, chilled and frozen products all in one delivery. There is no doubt that this method cuts the logistical costs attached to their deliveries. Among their products are several Private Label Products – those that they buy from sources and put their own label on. These goods must be high quality to pass their rigorous product testing specifications and need to meet all required legislative rules before they will accept it, brand it and sell it. If you want to sell products for Murphy USA Inc. then this is where you need to focus.To access this specific area of Core-Mark and become a supplier, you need to closely examine their mission statement, their expectations and their screening process to prepare yourself. Their primary goal is to provide customers with the best possible service and to help them grow their sales and profits. You should make sure that the product you are trying to sell them meets this need. They focus on high quality items at the lowest of prices, so you need to be willing to offer a good price.If you have a startling new produce that you feel will compliment the product range of Murphy USA Inc. then there are a few suggestions you should be aware of:
- Your product must be as cheap as you can make it – but with the best possible quality and longevity. It’s a tough line to walk.
- Core-Mark will only deal with bona fide businesses, so to get their attention you need to be registered.
- Core-Mark only deal in the physical, you can’t sell them a potential crop…
- It muse pass all legal/food hygiene and safety standards.
- Your product must come with liability insurance.
- It must pass all laboratory testing.
- It must pass all legislative rulings.
- It must pass panel testing.
To submit a product proposal to Core-Mark you must first contact your local representative. You can find the form to do so by following this link.
How to get your product into Murphy USA Inc.
- 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 Murphy USA Inc. 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.
Sometimes easier said than done, however you must get on Murphy USA Inc. radar.
Call the Murphy USA Inc. corporate phone number and ask for the names of the buyer and assistant buyers in your category.
Always leave voicemail with whomever the dispatch will connect you.
Use that information to connect with them on LinkedIn, RangeMe and any other professional social platform.
Ask your representative at your trade bureau to connect you to the Murphy USA Inc. buyers as they will potentially have a better history.
Use advertising, public relations and marketing to make your brand known to Murphy USA Inc. buyer through 3rd party websites & industry media sources.
Be everywhere that they look, the key is to position your brand as the obvious choice when Murphy USA Inc. is looking to either refill a slot or create a new category.
Latch on to the news of the day and any trend that will make your product fill that niche whether that be Non-GMO or Vegan Leather for example.
Investing in your brand can only benefit your opportunities in the future. As being “top of mind” will have a ripple effect when you physically present your product at a Murphy USA Inc. buyers meeting or trade show in the future.
Murphy USA Inc. buyers typically got to their position by picking “winners” and know how to see through the fluff.
Focus on the numbers, know your bottom dollar during a negotiation and how fees and chargebacks may cut into your position.
Know that long term success may outweigh short term sales, however financing large purchase orders from Murphy USA Inc. when the net result is negative is not sustainable.
Understand the playing field and the other brands that are in your space, what they are offering as promotion and pricing and how you can stand out against them.
By knowing that each buyer at Murphy USA Inc. probably knows more than you do, take an active listening approach to sales and understand that no is a perfectly acceptable answer that may have saved you millions of dollars on the backend.
How to Submit a Product to Murphy USA Inc.
Here are the 6 steps you need to take to have your product placed in Murphy USA Inc..
1. Start with the right questions.) Before you try distributing your product to Murphy USA Inc., 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 Murphy USA Inc. would be interested in selling your product? If you can strike a deal with Murphy USA Inc., can you handle the production volume? Do you want to sell directly to Murphy USA Inc., 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 Murphy USA Inc.? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check Murphy USA Inc. 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 Murphy USA Inc. 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 Murphy USA Inc. is the right store for your product.) The relationship between you and Murphy USA Inc. starts with you browsing their store for competing products. If Murphy USA Inc. already has a similar product, it is going to be very difficult to get your product picked up. Spend some time at your local Murphy USA Inc. 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 Murphy USA Inc..
If your company is minority or women owned, check Murphy USA Inc. website and see if they offer specific opportunities for those designations.
4. Pitch your product to Murphy USA Inc..) Decide whether it will be you or a representative to present your product to Murphy USA Inc.. 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 Murphy USA Inc., 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 Murphy USA Inc.. The percentage of commission verses, however generally a broker will take around 5% to represent your product to Murphy USA Inc..
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 Murphy USA Inc. 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 Murphy USA Inc. paperwork.) Often Murphy USA Inc. will have you go through an application process. However, before submitting the paperwork required by Murphy USA Inc., you should contact a buyer at Murphy USA Inc. 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 Murphy USA Inc. 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, Murphy USA Inc. 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 Murphy USA Inc., 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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