Home – New Forums New here? Share your story Need Advice and Guideline please

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  • #996252
    Jill K. Siantis
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    • Total posts: 6
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    Hi everyone,

    I’m new here and hoping to get some advices and guidelines here. Thank you in advance. I just registered a business, never had business background but had taken some short courses for some ideas. I’m looking at bringing a specific food product into Australia- but starting with Melbourne market from overseas. More being a distributor, the wholesaler would only allow me to be one if I’m going to cover all the states at one time, and having to buy 20ft container for each state. Of course I do not have such big capital and still trying to make a deal with the wholesaler to focus on one state first. The questions are:

    1. How do I approach the retailers in regards to this? Im looking at Wooly, Coles, Aldi and private grocers. Do I have to bring samples? Do they entertain a new business?

    2. How do one become a sole distributor? Just to get an idea

    3. Is it possible to work as middle person between wholesales and retailers without spending money out and when a deal is made, I will get my commission? I heard a lot about this but do not know how it works – how do you make the deal?

    4. Does it make sense to approach companies that deals between wholesaler and retailers and work out some percentage fro them? or will they get rid of me second time round since they know where they can get the product to receive higher profit margin?

    I hope I’m not confusing anyone to answer the questions. I do admit sometimes I complicate myself thinking too much.

    Look forward to some feedbacks. Thank you again.

    Sincerely,

    Jill

    #1206488
    Rowan@quaotic
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    Normally I would not dissuade someone from having a go but it sounds like you are not ready to make a huge jump such as this.
    It is very difficult to get into the big supermarkets even with some business reputation, and especially now as they are getting rid of a lot of their well known lines.

    Your lack of business experience will lead to huge mistakes at this time and I suggest you start small in your venture until you have a handle on it. Import a smaller amount and try to market to independent supermarkets and outlets just as a learning experience so you don’t have such a big risk. When you are more comfortable and know the business you can then expand.

    #1206489
    Paul – FS Concierge
    Keymaster
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    Hi And Welcome to the Forums. It is great to have you!

    Thank you for joining Flying Solo and posting today.

    Cheers

    #1206490
    elissa.doxey
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    Hi Jill,
    This sounds like quite a daunting proposition for someone without experience in this particular field, or without existing distribution connections. If the wholesaler is not interested in rolling out a smaller experiment state-by-state, or as Rowan suggests, store-by-store, you’re carrying a huge risk – especially for a perishable item, like food.

    Becoming a sole distributor comes down to your negotiation skills & capital to secure a big contract.
    Being a distributor still requires you to carry the burden of risk between the payment from the retailer to the wholesaler – retailers don’t often pay in full in advance of a shipment, but pay on delivery, or within set terms of delivery (i.e. 7 or 21 days).

    Unless you have something to value-add to the process (i.e. distribution channels, warehousing, connections), there is no reason why the wholesaler and retailer won’t bypass you.

    I’m sorry to rain on your parade, but I think you need to have a good think about how what you will do can add value to the whole process (do a google search for Porter’s value chain), plus a bit more research.

    Cheers,
    Elissa

    #1206491
    tutorsfield
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    Hi Jill, if you want get into Coles or Aldi, you may need to show them how much you are going to invest in marketing your products in Australia and how your product is different from your competitors.

    You need to show them why they should put your products on shelves, e.g. you are going to launch a national TV campaign to drive people to the retailers to buy your products. If you put on the buyer’s hat, would you put a product that no one knows on your shelves?

    #1206492
    Jill K. Siantis
    Member
    • Total posts: 6
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    Thank you very much all for being very helpful and appreciate those details. I’m looking at starting small and gain more understanding, knowledge and confidence myself. Look forward to learn more form this site.

    #1206493
    APICCollege
    Member
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    Hello Jill congratulations on starting on your own business. I noticed that you have done a few short courses. Whilst these may be practical in acquiring the soft skills you need for specific business tasks. Running an operation may require more comprehensive training. We’re offering a training program for especially for business owners to help then gain strong foundational skills in all aspects of running their business. If you would like to learn more please message me

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