Reach customers by distributing your snack food to stores.
Having a wonderful snack food product may not mean much if you have no way to get it to customers. You don't need to be a large distributor, though, in order to get your product in stores. Distributing your snack food item to outlets such as grocery stores and convenience stores is a very efficient way to reach hundreds of potential customers.
Instructions
1. Obtain all of the proper licensing and tax requirements in order to make your product legal for resale. This includes a local business license. Many state laws require a food permit for food items that will be distributed or sold, and many state laws prohibit home manufacture of such food items.
2. Acquire a universal product code (UPC) code. This will help you keep track of your item's sales in stores. If you decide to sell to large companies and national retailers, they may require you to obtain your own UPC code for your product, which can cost about $750, or you can go under another company's UPC code for less than $100. (Prices are as of 2010.) Some companies require a UPC code. It may not be required, however, if you distribute the item to small companies or local chain stores.
3. Obtain product insurance. Most companies will not accept your food snack without insurance. They do not want to be held directly responsible for issues that may arise from your product.
4. Contact local stores and companies. In this case, the smaller the better. As a start-up company, begin with stores that do not have many vendor requirements. This may mean contacting grocery or convenience stores in your area before knocking on Wal-Mart's or Trader Joe's door.
5. Offer incentives to your retailers. Give potential retailers a reason to put your product in their stores. You may receive more acceptance if you do not ask them to purchase your item. Instead, offer a commission on the products that sell. Retailers are always worried about purchasing items before they know whether or not they will sell. This strategy may help if your product is unknown.
6. Present your product well with packaging. The U.S. Food and Drug Administration has laws about proper packaging and labeling prepackaged food. Presentation is important when approaching retailers. They want to ensure that an item doesn't affect the rapport of their stores.
7. Maintain accurate sales records. After you distribute your item, keep a record of its sales. You can do so by simply subtracting the number of remaining items at a retail location from the number of items you placed at that location. Set up a proper payment schedule for your retailers so that you both are paid in a timely manner. You can avoid this step by having your retailers purchase the snack food before they sell the item, but it may be harder to find retailers willing to do business that way.
8. Organize timely delivery schedules. Keep track of when you need to restock your snack food item at the stores. Your delivery frequency may vary from store to store. Keeping the stores properly stocked with your product is important to ensure sales.
Tags: your product, snack food, your snack food, your item, your retailers, your snack