Your sales people should be good negotiators and deliver the most important demos

Customer Meetings

Your sales people should be good negotiators and deliver the most important demos

In person meetings are some of the most valuable time you get with your customers. Your sales people should know how to negotiate the best cost of goods. They should understand the category and know what the ‘right ‘ price is. They should also be very good at delivering the most memorable demo. So much more than jam on a popsicle stick! I can remember the first supplier sampling I experienced when I started with Loblaw. More on that later…

In person meetings should be a conversation and an opportunity to learn about your customers. Yes, your sales people need to get the best price and demonstrate the great attributes of your product, but they also have to listen and negotiate the plan you have built.

SKUFood meeting agenda

Over the last few weeks we have been discussing the components of a meeting with a retailer. Make sure your sales people take the time to make each retailer meeting unique. Your customers are all different so the meetings should be different. Sure, there are common elements but your customers each occupy a unique position in the market and your sales people need to respect this.

When you are developing your presentation, it is important to keep in mind the purpose. Challenge your sales people to outline the top 3 things they want to accomplish in the meeting. From our perspective if they are successful with 3 initiatives in every meeting this adds up to a lot.

Retailers need to see you as supporting their position in the market, driving traffic into the store and selling products. Include photos of their stores and perhaps quotes from their people. When your sales people demonstrate they are invested with them it makes a difference. We will dive into each segment of the meeting in upcoming newsletters. Our recommended format for a meeting is the following agenda:

1.  Cover page 

2.  Agenda 

3.  Introduction 

4.  Point of differentiation 

5.  Sales plan 

6.  Costing 

7.  Sampling 

8.  Credibility 

9.  Conclusion 

The following outlines the purpose and content suggestions for each section: 

Product costing

Cost of goods has always been important and a topic in almost every supplier meeting I attended. It is probably even more important now, given the challenges with food inflation and the heightened sense of awareness associated with the price of food. A big part of getting the right price is being aware of what is happening in your category.

You cannot price your products in a vacuum. Your sales people need to be in the market looking at prices in your customers and other retailers. They should know the category margin and have a good sense of what your customers are paying for all of the items in the category. If they see retails moving up (or down) they need to understand why and be ready for the conversation.

When you are trying to get listed you need to get the right price. If it is too high, it might look good on your financial statements but the resulting retail will be above the category and your product might not deliver sales. Then you will be forced to over invest in promotion to drive volume or worse, you will be delisted. If the price is too low your business will suffer and you will be doing a lot of work for no return. Frustrating and not sustainable. Do not fall into the trap of ‘once I get listed and get the volume my costs will go down’. Yes, there might be some economies of scale but we also see other expenses creeping in to offset any gains you make.

We recommend your sales people go through the exercise of cost-based pricing and category-based pricing to ensure they have the right price. Your sales people should also be in a position where they can make decisions about pricing in the meeting. Good negotiators are knowledgeable and know the lowest they can go. You might have heard us say, ‘any shelf is not the right shelf’. If the retailer is trying to force the price to a place where it is not viable for your business your people need to be able to make the decision to walk away. Tough to do in a market with a lot of consolidation but might be a reality for your business.

We talk about the relationship with your customers as a journey. Pricing is a big part of that journey. If you know you will be facing a cost increase on ingredients or packaging your sales people should be foreshadowing the increase. Do not give them the ‘sky is falling’ approach but focus on the facts and the impact on your price. Might be 6 months out but when they know it is coming it is easier to negotiate when it happens.

Your sales people should have the autonomy to make decisions in the meeting with the retailer. Nothing more frustrating for a retailer than spending time with someone and they are not able to make the decision.

The best discussions about product costing focus on the facts and are initiated by people knowledgeable about your business. Your customers will respect them more and not perceive they are being ‘sold’ something.

Sampling

When your sales people are sampling your products for your customers these are the most important demos they will ever do. You need the retailer to experience the product as the consumer does.

I mentioned I can remember the first supplier sampling I experienced at Loblaw. This goes back to the late 80’s and they were giving me an opportunity to work in different departments to get experience across the business. At the time I was working in real estate and they sent me to merchandising to sit with one of the category managers. This person was responsible for canned fruit and vegetables. The supplier was trying to get some canned vegetable SKUS listed. I will never forget him putting the cans on the desk and pulling a can opener out of his brief case (yes, the kind with the combination locks for those who remember). He proceeded to open the corn and push it across the desk for us to stick our fingers in the can and try a few niblets. I could not believe it. No consumer opens canned corn and eats it like that. He even put his dirty fingers in there to show up how much he liked it. Needless to say, this is not how to do it…

Your sales people should figure out the best way to sample your products to make it memorable and highlight the best attributes of your products. It does need to be manageable but they also need to put some work into it. There are many different tactics they can employ to get the attention of the retailer and stand out from the crowd. Aside from the cold corn niblets, I did get to experience some great supplier sampling that really did get our attention and reinforce the great product attributes they had.

Memorable sampling requires some planning and great execution. Challenge your people to be creative and showcase your great product. Retailers see many of these, figure out how to stand out from the crowd. Get them to practice with your own staff. It is not easy to deliver this while conducting the meeting and trying to learn everything they can from the retailer.

Next week we will talk about credibility and a strong conclusion.

I do have travel coming up to Toronto, Guelph and Winnipeg so if you want to connect or have an event in any of these locations give me a call or send me an email.

Peter

SKUFood Recipes for Success Podcast

In this episode of SKUFood Recipes for Success, we sit down with the co-founders of Saltwinds Coffee, Laura Richard and Brad Rideout, to explore how innovation, science, and entrepreneurship have come together to create one of Canada's most unique coffee brands. From their roots in New Brunswick to expanding into retail markets. Saltwinds has built their business by being different through its proprietary Ocean Air infusion process that brings a distinctive maritime element to every roast.

Laura and Brad share the story behind building Saltwinds Coffee, combining expertise in chemistry, product development, technology, and business growth to create a brand that stands out in a crowded category. They discuss the challenges and opportunities of bringing an innovative product to market, the importance of differentiation, and how they've translated a unique concept into an award-winning brand with national reach.

We also explore the balance between innovation and commercialization, the role of storytelling in building consumer connection, and what it takes to scale a premium food and beverage brand.

If you would like to be a guest send us a note. We are always working on the upcoming episodes.

The FCC Food & Beverage Summit is coming to Winnipeg on September 29 and you’re invited!

We’re bringing together food and beverage entrepreneurs, industry experts, retailers and more for a full day of insights, inspiration and connection. From industry-leading speakers to a marketplace showcasing incredible Canadian products, it’s your chance to learn what’s new, grow your network and take your business to the next level.

If you’re a food or beverage entrepreneur, you won’t want to miss it. Seats are limited. Reserve yours now!

Government of Canada Strategic Response Fund

From the website:

With the focus on Canadian food and beverage we wanted to share a program we have developed with Alain Bosse, the Kilted Chef. We partner to share insights about Canadian food and beverage at conferences and events. We talk about where products come from, share insights about some hidden gems and of course Chef Alain has great tips for using the products at home. This is designed to be entertaining and engaging. Not just for food industry audiences, it works for everyone.