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Have only skimmed across the majority of this post (no offence intended) although just wanted to address the supply issue you will have….

Once you engage a distributor, or even commence chatting, one of the key things aside from price is always your ability to produce the goods they will be selling.. If it takes off, and you can not replenish or supply enough stock to fulfil orders, this is not good for the distributor as it is their brand and work ethic that will be affected. As such, they tend to side with businesses that are ready to go.

Are you able to commence a chat with a production house to have ‘on call’ should a distributor want to come on? furthermore, without having a chat to this outsourced component of your business that sounds like it may be a necessity, how will you be setting your pricing without knowing what they will charge you?

It is important to have your prices all encompassing. Imagine you get the distributor on board and then you start queries with the production house and then also notice that you are off (in a bad way) by 10% on what you thought the costs would be? Not a nice thing to have to go back to the distributor and say ”oh, and by the way the price is increasing to xxxx as i forgot to allow for xxx”

Just food for thought, its a very interesting and very tough space… Local cafes may like it for its uniqueness or ’boutique’ style, which will be lost when going main stream and groceries may not like it as its not a branded item or advertised to encourage consumer uptake in the heavily dominated FMCG field. Not saying cant be done, just issues you must work through before you set a price with someone that can make or break you.

Let us know how you go, i will revisit the post to read it properly later – just wanted to add this before i forgot :)


Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888