Any tips on dealing with supermarkets?

[Leson50]

Discussions to take place shortly on supplying imported goods. Any hidden charges, penalties etc etc...one should be aware of. What should I stay clear of?

 

[Geoff T]

Blimey - where do you want to start?!?

Skeletal margin (as they'll cut you to the...)?
Overrider?
Clawbacks?
Product recalls fees?
Failure to supply charges?
Labour charges for pallet changes?
Charges for sending goods out of the distribution centres?
2-3 month delays on resolving queries (so not getting paid if everything isn't spot on)?
MIN 45 days payment terms?

Luckily I'm not an account manager for any of them directly - I just get to see the bills (which get deducted from what I can collect) and usually before I even know of their existence...

 

[Geoff T]

If you do it right, it's like money in the bank... the supermarkets have got more cash than the Govt!

If you can stand all the loops you have to jump through, and an average of 75 days credit, and make on the deal...

then best of luck!!!

 

[Leson50]

Slightly worried about being gobbled up by a multiple. Any protective measures, tips, etc. What is doing it right?

 

[AndyBlue]

Best suggestion I can give you - as an account manager that has dealt with these guys, before you give out any prices make sure you know exactly what will be deducted off. As Geoff says these guys can come up with a million and 1 ways to make a price of £1 suddenly become 50p.. One to be very clear on is what happens when things go wrong - One 'customer' i know charge £20 for a product complaint - even if there is nothing wrong with the product but if one of their customers complain you get that bill, then if you haven't responded within so many days you get fined for late response etc. So be very clear you know exactly what you are letting yourself in for. On the plus side again as Geoff says you can actually sell loads of products and make loads of money. Some of the discounters are the best to start with as they tend to go for net prices with none the fancy clawbacks etc and are very efficient and will give quick answers yes or no and place firm orders.