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  • #983406
    tennissus
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    Hi, I am trying to sell imported biscuits directly to supermarkets. Products are produced in South America.

    I already import other things from South America, but I sell them online through ebay. Now I am trying to go big, looking to have much bigger volumes.

    I’ve been lucky to get the attention of one of the big supermarkets. I have to give them a proposal, and I am at a loss because I have no idea what the supermarket mark up is for biscuits.

    Any suggestions?
    Tennissus

    #1142159
    Anonymous
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    Hi tennissus,

    Firstly, I apologise that your initial posts got held up in our moderation queue for a while there. I’ve merged the two posts into one for you so that all the relevant information is covered.

    I’ve never had to present a new product line to a supermarket chain, but I have done it for pharmacy and health food chains, so I know how intimidating it can be!

    Unfortunately I don’t know the markups they use (and it is probably different in different categories), but I would start by researching the cost of similar biscuits in one of their stores, and work backwards from there. Bear in mind that the job of the buyers is to pay as little as possible for your products, so they will work hard to get the price down, and you need to know what the minimum that is sustainable for you will be, and how much stock you’ll need to sell to make that rate viable. You may also need to factor in listing fees or shelving fees (some chains may try to make you pay for the shelf space your stock is on).

    I hope that gives you some info to think about, and I have my fingers crossed that others with slightly more relevant and more recent experience will chime in with extra info.

    Good luck – please let us know how you get on!
    Jayne

    #1142160
    tennissus
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    Thanks a lot. I guess when I finally send my proposal, I will have to leave some pricing room in case they do decide to charge shelving fees and so on. I would really like to hear from anybody who has sold to supermarkets and share their experiences with me.
    Cheers,

    #1142161
    Jenny Spring
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    tennissus, post: 162517 wrote:
    Hi, I am trying to sell imported biscuits directly to supermarkets. Products are produced in South America.

    I already import other things from South America, but I sell them online through ebay. Now I am trying to go big, looking to have much bigger volumes.

    I’ve been lucky to get the attention of one of the big supermarkets. I have to give them a proposal, and I am at a loss because I have no idea what the supermarket mark up is for biscuits.

    Any suggestions?
    Tennissus

    Hello Tennissus

    It is really important to work with the potential client. It is a simple 2 questions —

    ‘what markup do you need for us to work together?’
    ‘what price do you think you will sell these for?’

    Don’t mess around trying to guess.

    They want your product, you want to sell it to them.

    Just ask, and they’ll tell you.

    BTW — shameless plug ahead, so stop reading here….
    I’m running my super successful How to Wholesale BootCamp starting in 2 weeks. Sounds like it could be useful for you. More deets on my website – link below.

    Jenny

    #1142162
    Cat – GLC
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    Hi tennissus,

    Not sure if this will be any help but it is a good read to see how others have dealt with the bigger supermarkets, plus is it a fairly recent article. Crunch time for supermarket food suppliers

    Hope it all goes well for you. But I suggest you have a set price in your head as the lowest you will go that is still viable for you before you go in for a chat with them.

    Cheers

    Cat :)

    #1142163
    Stuart Ayling
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    • Total posts: 19
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    Hi tennissus,

    Jayne is right in suggesting you factor in various fees. Major retailers may also ask for promotional fees, rebates based on volume and payment discounts (terms). I don’t work directly with supermarkets but one client I had a few years ago found they needed to allow (I think) around 30% for the charges/fees/discounts when they were selling to the major hardware chains.

    In one of my past lives I was a Marketing Manager with a pharmacuetical wholesaler and suppliers were always required to commit to something ‘extra’ like promotional funds. It’s how the companies boost their bottom line. For example Purchasing Managers have targets for getting cooperative advertising money from suppliers.

    And large chains can have sales velocity requirements so that if your stock doesn’t sell fast enough they can return it to you.

    Before you submit a proposal I suggest you try and have more discussions with the supermarket. Keep asking questions. Knowledge is power. Hope you do well.

    Stuart

    #1142164
    lazarofa
    Member
    • Total posts: 8
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    tennissus, post: 162517 wrote:
    Hi, I am trying to sell imported biscuits directly to supermarkets. Products are produced in South America.

    I already import other things from South America, but I sell them online through ebay. Now I am trying to go big, looking to have much bigger volumes.

    I’ve been lucky to get the attention of one of the big supermarkets. I have to give them a proposal, and I am at a loss because I have no idea what the supermarket mark up is for biscuits.

    Any suggestions?
    Tennissus

    Hi, what sort of other things do you import from South America? From which countries? Is it difficult process to import from there.

    I am considering importing products from Argentina to Sydney.

    #1142165
    Beth Cregan
    Member
    • Total posts: 1
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    Hi,
    My partner works in this field and is happy to speak with you and provide some assistance. Where are you based? We are in Melbourne but other states might be a possibility as he travels throughout Australia. You can email me at [email protected] and I can put you in touch with him. Good Luck!

    #1142166
    Recalled to Life
    Member
    • Total posts: 3
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    tennissus, post: 162517 wrote:
    Hi, I am trying to sell imported biscuits directly to supermarkets. Products are produced in South America.

    I already import other things from South America, but I sell them online through ebay. Now I am trying to go big, looking to have much bigger volumes.

    I’ve been lucky to get the attention of one of the big supermarkets. I have to give them a proposal, and I am at a loss because I have no idea what the supermarket mark up is for biscuits.

    Any suggestions?
    Tennissus

    Hi Mate,
    I’d love to know what kind of biscuits you are selling!
    Let’s get in touch, here is my email address, [email protected]

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