Intro to Wholesale with Peter Chapman
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Transcript of Intro to Wholesale with Peter Chapman
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You love to grow it, Now let’s sell it
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You love to grow it, now let’s sell it
Retail landscape
Must have
Nice to have
Behind closed doors
Getting organic in the cart
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Retail landscape
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Retail landscape-1980’s Large store Traditional Discount
10% 70% 20%
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Retail landscape-1990’s Large store Traditional Discount
15% 60% 25%
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Retail landscape-2000’s Large store Traditional Discount
20% 50% 30%
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Retail landscape-2013 Large store Traditional Discount
25% 40% 35%
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Retail/other landscape-2013
Specialty Food service Drug
Farm Markets
CSA
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Linear footage
Dairy 495 712 690 704
Frozen 495 1,800 1,710 1,080
Core groc 2,574 3,592 5,292 3,524
Water/pop 1,176 1,844 1,454 1,068 Chips/snacks
Household 1,680 1,692 1,376 880
Imported 144 504 852 320
Total 6,564 10,144 11,374 7,576
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380 Wal Mart stores 222 Wal Mart Super Centers Annual sales $466,100,000,000
14.2 x Loblaws 27.3 x Sobeys 36.9 x Metro 6.3 x Target 4.6 x Costco
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A changing customer
More focus on value
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A changing customer
More focus on value
National business
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A changing customer
More focus on value
National business
Blurring of channels
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A changing customer
More focus on value
National business
Blurring of channels
U.S. share
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What do you need?
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Must have when selling to retail
Confidence
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Must have when selling to retail
Food safety/certification
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Must have when selling to retail
Consistent execution
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Must have when selling to retail
Technology/EDI
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Must have when selling to retail
Packaging & labels
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Nice to have when selling to retail
Promotion
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Weekly ads
“36% of sales and 48% of tonnage are items with a temporary price reduction” A.C. Nielsen “State of the Industry report”
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Nice to have when selling to retail
Nice labels
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Nice to have when selling to retail
Assortment
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Nice to have when selling to retail
Volume
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Behind closed doors
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Organic to a retailer
1 of 50,000 skus
Your item to build…
not mine
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Behind closed doors
What we like
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Point of differentiation
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Premium price per unit
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Your passion
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A committed consumer
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Control label organics
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Assortment
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Behind closed doors
What we don’t like
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Herding cats
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Resistant to change
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Inconsistent supply
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Shrink
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Front end
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Different method of doing business
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Behind closed doors
A few numbers
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Produce margin
Shelf G.P. 45.0
Ad investment 5.0
Shrink 7.5
Labour 12.0
Supplies 1.5
Contribu<on 19.0
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Retailer profitability
Shelf G.P. 27.0 Ad investment 5.0 Shrink 2.0 Labour 7.5 Fixed exp. 2.5 Variable exp. 1.5 Distribu@on 7.0 Total expenses 25.5
Profit 1.5
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Shrink 10%-15%
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Penetration 5%-8%
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Selling more organic
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Getting started
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Getting started
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A plan
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Growing sales
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Persistence
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New items
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Different items
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Control label
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Relationships
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Thank you