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Category managers are your key point of contact

Last week we talked about buyers and the role they play for retailers. We discussed buyers first because it is probably the term I hear most often used in the wrong context with retailers. Often when people say ‘buyer’ they really mean category manager. We are sharing insights into industry terms each week to ensure […]

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Buyers are not category managers

One of the reasons we are sharing definitions of different terms this year is to help people in the industry speak the language of retailers. You have a much better chance of developing a good relationship when you are speaking the same language. Buyers work in the supply chain department of retailers. These people, in lower level […]

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Shielding can change category margin

Private label is on the shelf for a number of reasons. Improving category margin is one of those reasons. Retailers expect comparable costs to be lower on private label. The margin required for consumer-packaged goods companies to invest and build the brand is not built into the cost. This can be a 30-40% difference. Private […]

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Mixing back delivers much needed margin

There is no doubt the margin retailers add is a source of frustration for suppliers. It takes a lot of hard work to produce food and beverage, with profits often very low. When you go through all the work and then see your customer, the retailer, selling the product with a 40% margin it makes […]

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Cross merchandising delivers incremental sales

Consumers can be influenced at the point of purchase. Retailers believe this is the key opportunity to convince them to buy. Some people shop with a list, but many people walk into stores looking for ideas. When they see products merchandised close together that can be combined to make a meal, they get inspired. Inspired […]

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You need to understand your category

Selling into retail has many challenges. To have a better understanding of where you fit and what you need to accomplish you should have a great understanding of your category, where you compete in the store. This year we are helping you define different industry terms. We share insights into the terms and how they […]

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Average order is an important metric

Thinking like your customers can help a lot of suppliers improve relationships and ultimately sell more. Retailers are always focused on average order or basket size. The size of the average consumer transaction tells them a lot about what is happening in their business. This year we are helping you define different industry terms. We […]

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Backhaul can save you money

Logistics are becoming a bigger percentage of the final cost of food and beverage products. Unfortunately, consumers and customers will never pay more just because the product gets where it is supposed to be. Producers and processors need to find opportunities to reduce these costs. Backhaul should be a consideration. This year we are helping […]

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Rebates are money flowing from suppliers to retailers

Selling products through the retail channel is not for the faint of heart. You need to understand how the relationship works between retailers and suppliers. You don’t have to like it, but you do need to know what it will cost. Rebates are a fee that is collected by retailers in exchange for having the […]

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The rationale behind listing fees

One topic that can get many people in the food and beverage industry riled up is listing fees. People often ask me, ‘why do retailers charge listing fees?’ and the simple and answer is: because they can and suppliers pay them. We will get into more detail and provide you with more rationale, but we […]

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