Readiness to enter federal retail chains: checklist for the manufacturer
A novice manufacturer is most often engaged in the sale of their goods on their own. As a rule, at the beginning he sells without intermediaries, directly to the end consumer. As the business grows, the need for sales expansion increases, and it becomes more difficult to fully conduct both directions. Therefore, distributors, retail chains and their agents appear between the client and the manufacturer. Sales of goods through the shelves of regional and then federal networks are all stages of the "maturation" of the business.
But this strategy is not suitable for every manufacturer. Networks often place high demands not only on the quality of products, but also on the business processes of partners: document flow, timeliness and completeness of order fulfillment, financial stability, etc. And for failure to comply with any of the points, fines are threatened. Therefore, it is important to objectively assess your capabilities in advance.
Retailers, when receiving commercial offers, usually evaluate them based on the following criteria:
- the need for this category of goods,
- competitive pricing,
- product packaging and appearance,
- the volume of possible supplies.
The networks also impose certain requirements on the supplier. Here are the most frequent:
The product must be in demand among consumers and relate to mass-consumption goods, as well as comply with the price and assortment policy of the store. The product must be in an attractive and convenient package and comply with regulatory documents.
The service "Production cooperation and sales" on SME.RF will help to study the demand of networks.
The target audience. Before sending a commercial offer, you need to study the target audience of the retailer. The main thing is how much it intersects with the manufacturer's target audience.
Product quality, which can be confirmed by documents (certificate or declaration of conformity). If the products are not manufactured according to GOST, there must be a technical specification. The procedure is not fast, it is better to start it in advance. You should also be prepared for an audit by the retailer.
The production facilities must meet the requirements of the retailer. Disruptions of supplies are unacceptable and jeopardize cooperation with the network, as well as threaten large fines.
The positive history of the company, including the experience of implementation through local networks and marketplaces, increases the chances of success
Pricing policy. She has to be competitive. Federal retailers most often work with the middle and lower price segments. Therefore, an entrepreneur should understand that craft cheeses or artisan chocolate will not be in demand in all networks.
If all the conditions are met, it is worth choosing several networks and sending them commercial offers. It should be understood that the deadline for reviewing applications is not fast, negotiations can take six months. For effective negotiations, you need to know all the advantages over competitors, the cost of goods and at what price you are ready to sell through the network.
Cooperation with retailers cannot and should not be an end in itself. It is difficult for small local manufacturers to compete with industrial giants, so sometimes it is more profitable to cooperate with local networks. By the way, the "Farmer's Island" allows small agricultural producers to establish sales of their products using the traffic of retail chains.
***
Support for entrepreneurs in the region is carried out within the framework of the national project "Small and medium-sized entrepreneurship and support for individual entrepreneurial initiative", which was initiated by the President and overseen by First Deputy Prime Minister Andrei Belousov.