Selling to a supermarket takes pitching and the supply of tenders. Supermarkets invite tenders from suppliers and accept the ones that they see as both beneficial and affordable. For instance, the procurement manager of a supermarket may attend a trade show to see which supplier would be supplying cupcakes to the supermarket next. After getting the potential suppliers, the supermarket invites tenders from the potential suppliers and they pick the tender that suits them the most.
Distributors are contracted to because of their wide networks. Distributors are companies that can reach several thousands of markets both within and outside the country. They have grown their network to cut across several stores and they have established lasting relationships with these stores. It is not impossible that a distributor can get a product to more than 1000 stores. Some can do way more. If a manufacturer is just starting out, it is always helpful to use these distributors as they can provide wide distribution to products.
Just like other distributors in the supply chain of many consumer products, the distributor has to be in constant contact with manufacturers and retailers. They have to consider the price at which they are distributing so that the retailer does not stock up forcefully and regret as consumers are mostly wary of prices.
Supermarkets stock so many food and grocery items. They do this to offer a wide variety of products to their customers. Customers are looking to get the special spice, meat, wine, sushi, pizza, or any other food they crave and supermarkets are the go-to for this. It can be very disappointing when a customer look all around the store and can’t get the needed products.
For instance, to deliver to a retailer like Whole Foods, a lot has to be understood. 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. However, this is a big retailer and there is a high standard for the products they take and thus, it may not be that easy to push your products in there. This is why networking can be very useful.
It is very essential that a distributor sees the range of what the supermarket offers and how a solution that can be provided. It is very important to understand that supermarkets may be forced to reduce prices and if the prices coming from the distributor isn’t helpful in that regard, it can lead to financial issues to which the distributors may become victim as there would be debts and outstanding.