Margins with stockist and retailers.

[Paul Kelly ICHYB]

Sitting down with someone who is technical and knowledgeable in price strategy

It isn't rocket science - people just make look like it is!

 

[smithster1]

It isn't rocket science - people just make look like it is!

OK here's a question for you (please).

What about a restaurant? Would they be classed as a stockist or a user and would the wholesale price be different based on the fact they are most likley going to be ordering less?
Let's say the cost to reatailer ordering 500 units a week is £3. Would the restaurant pay more like £3.50 or £4? If the reail is price is £6?
I actually have restaurant packaging (it's bigger) And I aim to contact restaurants and catering.

 

[Paul Kelly ICHYB]

Very different as restaurants offer a different service to a retailer. The will double/treble the price (think things you can compare, like wine).

Sell to them atbabproce you are happy with and let them manage their own pricing.

 

[smithster1]

Very different as restaurants offer a different service to a retailer. The will double/treble the price (think things you can compare, like wine).

Sell to them atbabproce you are happy with and let them manage their own pricing.

Thanks, that was my initial thought, obvioulsy not retail, but if the retail price was £6, and price to retailer was £2.50, price to restaurant may be £5.. It may be most brand in my space sell to restaurants at retail but I can't see it, a small discount is most likely, I just knew restaurant pricing was different to retail pricing.

 

[Mark T Jones]

12 months of market research, 4 trips to the country where I have sourced from, I have a strong USP that I won't share on here as I am not sharing the brand so won't have relevance, meets all food standards and has been tested and certified and to date, have sold 75 units without even really launching (we launch in 2 weeks time when updated packaginf arrives), website is 100% complete, as is the bricks and mortar store.

Your market research is key here.

By which I mean, of course, real, detailed demographic research which extracts far more answers that you don't want to hear than those you do - because addressing those things is where the value lies.

Anyone can dish out freebies and get people to say its nice

- how many of your demographic have expressed a specific interest in your USP? (As opposed to just nodding agreement

- what is their prime motivator to move away from their current brand (or indirect competitor)?

- what is their tolerance to price difference?

That, and a whole lot more is market research - not just obedient acquiesce

Don't sell it to yourself, that's a waste of effort

 

[fisicx]

Thanks, that was my initial thought, obvioulsy not retail, but if the retail price was £6, and price to retailer was £2.50, price to restaurant may be £5.

No, probably be the same or less. They then mark up even higher.

 

[smithster1]

No, probably be the same or less. They then mark up even higher.

Do you mean same as retail or same cost as to the retailer? So selling to the restaurant for less than £2.50 in this example?

 

[Paul Kelly ICHYB]

Why would you sell to restaurants for (a lot) more than retail.

Set a price and use it. The only real reason for discounting is for volume.

 

[NickGrogan]

Thanks, that was my initial thought, obvioulsy not retail, but if the retail price was £6, and price to retailer was £2.50, price to restaurant may be £5.. It may be most brand in my space sell to restaurants at retail but I can't see it, a small discount is most likely, I just knew restaurant pricing was different to retail pricing.

What is the logic behind this? If the restaurant is buying at double the price, how do you expect them to make any money?

Restaurants buy from the same wholesalers as everyone else.

 

[fisicx]

Do you mean same as retail or same cost as to the retailer? So selling to the restaurant for less than £2.50 in this example?

You sell at the same price to everyone.

 

[Mark T Jones]

Do you mean same as retail or same cost as to the retailer? So selling to the restaurant for less than £2.50 in this example?

The price anyone pays is a reflection of their buying power

Big restaurant chains will (broadly) pay the same as big retailers.

Little independents pay (broadly) the same as independent retailers.

The challenge for you is different but the same - having got through the door, it has to be presented in a way that makes the customer want to buy it. That will take a different form in a restaurant than a supermarket

 

[smithster1]

...having got through the door, it has to be presented in a way that makes the customer want to buy it. That will take a different form in a restaurant than a supermarket

Interested to hear your thought on this? Do you mean as a USP?

Presentation / image (retailer) vs Taste (restaurant) ?

 

[fisicx]

Interested to hear your thought on this? Do you mean as a USP?

Presentation / image (retailer) vs Taste (restaurant) ?

Sort of. You get display units made up, have introductory offers, free tasting sessions and so on.

In restaurants the product would be part of a menu - you brand becomes irrelevant.

 

[Chris Ashdown]

I can understand selling to a hotel group as a thank you gift to their customers if the price is low enough (lay one on pillow type thing) but never bought anything from a restaurant apart from a drink or meal