For Showcase
September 29, 2001
Suppliers and Retailers Working Together to Sell More Food
Granted we work at a much more mundane level than those who’ve struggled in recent months to handle the direct impact of the attacks on the World Trade Center and Pentagon. But with all the efforts to develop bi-partisan activity on Capitol Hill in the light of early autumn’s tragic events, it seemed appropriate to try to bring some of the same sort of effective dialogue and cooperative effort into the world of retailing. The concept of cooperation between retailers and suppliers to help promote product is hardly a new one. We all talk about it. But whether or not it actually happens. . . well, that’s a different story. Whatever direction the economy heads in, I can pretty much guarantee that everyone’s life in the Specialty Food world will be easier if we really do work together to help improve our promotions and increase sales.
My experience is that the bond between supplier and reseller will be best if we focus on what each of us can do to help create a mutually beneficial and rewarding relationship, including (but of course hardly limited to):
1) The better the relationships lead to better sales.
Good relationships are rarely built overnight, and they’re rarely one sided. I’ve found regularly had reaffirmed the reality that we’re more likely to get promotional support from suppliers with whom we have a long-standing, positive relationship. Quite simply, if, out of the blue, a retailer rings up his supplier and starts asking for extensive support without having a track record already in place, it’s unlikely that he’s going to get a whole lot. To my view, it would be akin to asking for a new car for Christmas while you’re only on your first date. Can’t blame you for trying but . . . While everyone’s hopeful, the truth is there’s not much to go on other than an upbeat attitude.
2) Actions speak louder than words.
We all tend to promise a lot. The question, really is, what are we going to do about it. Our integrity is always going to be based on the congruity of our words and our actions. In my experience suppliers like to work with retailers who actually follow through on their commitments. That is, retailers who actually run the promotions they say they will, who really build the displays they promise to build and sample when they say they’re going to do that too. (Unsolicited, as I was writing this piece the following note arrived from a vendor we don’t currently purchase from, thanking me for responding to her inquiry: “It's really appreciated,” she said, “because so many people at the shows that request literature & samples never acknowledge the follow-up.”) Similarly retailers would rather work with producers who actually send out the samples they promise, whose invoices reflect the prices quoted for promo specials, etc. Certainly we all fall short regularly—I know I have. When we do err, or course, it’s imperative that we handle our integrity breach well, . . . with integrity. Own our errors, apologize and let’s move on.
3) Mutual Understanding Makes a Difference
Effective relationships are always built on solid mutual understanding of each other’s work. I know that for me. there are few things more frustrating than being called on by a salesperson who, it’s obvious knows almost nothing about Zingerman’s. And although, the service burden is really on the seller, the truth of the matter is that the relationship and the effectiveness of the promo work is going to be infinitely more effective for both parties if the retailer takes the time to learn a little about the product and purveyor that’s being sold.
4) Remember It’s A Two Way Street.
Although it’s easy to ask for more—and I certainly don’t mind asking—I know that we’re more likely to get the support we’re looking for when we give a lot to the effort on our end. No supplier/no relationship works well when only one side is doing all the giving.
5) The Value of Positive Feedback
I haven’t found too many people in all my years in the food world that feel like they get too much positive reinforcement. So why hold back? Go wild. Positive reinforcement—in either direction helps a lot. Take a minute—especially in light of recent events—find someone you work with regularly and thank ‘em.
What One Supplier Hopes for from Retailers
I guess one reason that I feel this way is that at Zingerman’s we work in both the role of the retailer and the supplier. While many in the industry are familiar with the Deli, our Bakehouse wholesales bread and baked goods to over 100 different retailers and restaurateurs all over our area. Our new Creamery will be following suit with fresh hand made cheeses. So before I get into the kind of promo support that we as a retailer would like to get from our suppliers, let me quickly list a few things that we as a supplier love to get from our retailers.
1) A Commitment To The Product
And an understanding that it doesn’t all just happen because we show up in the market. To really build a solid presence at retail, in my experience usually takes 12 to 36 months. Many retailers give up after a three or four.
2) Energy and Enthusiasm
Especially the during their debuts products often sell well not so necessarily because of their own attributes but because of the enthusiasm of the people selling them.
3) A Chance to Train Staff
As a supplier who believes strongly in the quality and uniqueness of our products, we stand ready to actively provide training tools to our retailers. Some take full advantage, but, unfortunately I’ve found most don’t. I wish there was some other way, but in order for us to provide extensive and effective training for your crew, be at all effective we have to have people to whom we can impart what we know.
4) Proper Care and Handling
While we can make a great product on our end, we’re all in trouble together if it isn’t handled well all the way through the distribution chain.
5) Communication and Timely Feedback
If we don’t know how we’re doing we’re hard pressed to improve. Both positive appreciation and constructive criticism give us the opportunity to do a better of providing good service.
What a Certain Retailer Would Like from Suppliers?
After all that, now we finally get to the other half of the list, What sort of support would we as a retailer like to get from our suppliers. Basically, we're happy to take vendor support in any form in which it's offered. The more purveyors can help us to promote their products, the better for us, the better for them and the better for our customers who have an increased opportunity to try something really delicious.
1. Samples
Because we sample so aggressively, we always ask for sampling allowances from suppliers. The more we can sample effectively to let customers taste the product, the more we can sell. If suppliers don't provide samples and we really love their product we'll probably end up sampling it anyways. But certainly we'll be much more aggressive and effective in our selling when samples have supplied been supplied for that purpose by the vendor. Can I guarantee a directly correlated ratio between amount sampled and amount sold? No, of course not. Sampling doesn’t happen in a vacuum. Its effectiveness is as much dependent on the quality of the staff, the quality of the entire environment, the weather, etc., all things we have no control over. But I do know that when we sample a well made, great tasting item we always sell more of it than when we don’t.
2. Promotional Support
When we run a promotion on a product it’s usually far more effective if we can get some sort of support from our suppliers. Although we’re not in an industry in which price is the driving factor in our customer’s buying decision, I do believe very strongly that promotions help focus staff and customers on selling specific products or product lines they might otherwise miss; and that once we’ve successfully focused them, the sale is significantly more likely to happen if we have a nice promotional price on our sign. With that in mind, we’ll often we suggest that suppliers discount the product to us, and, in turn, we will pass on the discount to our customers. That way everyone is sharing in the cost of the promotion and working together to build sales.
3. Advertising Support
Quite simply this is sharing or supporting the cost of running advertisements, either in our own printed materials (of which we do many) or in newspaper ads. On our own we don't do much outside advertising so unless suppliers have a large ad budget we do more work with them in supporting our own newsletters, catalogs and handouts. Many stores on the other hand, do enormous amounts of print, radio or TV advertising and sharing the cost can certainly be win-win.
4. Point of Sale
These are the informational handouts, recipes, signs, shelf talkers, banners, etc. that we’re all familiar with. Whatever varieties of POS vendors have, we can almost always make productive use of them. Recipes are regularly in demand from customers, so the more we can get the better. Shelf talkers, posters, etc., all help us sell more effectively. Because we make so much of our own promo material in house, we will often take the offerings the supplier has and doctor them up to fit our own look and feel. We can turn articles into Zingerman’s handouts. We can take posters and embellish them with some of our own materials. (One note: POS materials tend to make a strong initial showing in the shop and then—through the inevitable entropy of life—they gradually disappear. It’s important for both the supplier and the retailer to visit the selling “site” regularly so you can see if they’re in use. Great recipes in a big box in the back storage room rarely accomplish a whole lot.)
5. Demos
We like to coordinate demos with suppliers; they add energy to the store and help build sales. If the producer themselves can come out and do the demo in person that’s great—there’s nothing like the cheesemaker herself being able to connect face to face with customers to make a positive lasting impression. Of course one cheesemaker can only visit so many stores and still be able to make cheese, so if the producer can’t come in person we certainly understand. In that case we prefer to do the demos with our own staff so that we can be confident that the product will be presented with the same enthusiasm and passion that we use in selling any of our products, and then get reimbursed by the supplier for the cost of the labor involved.
6. Prizes for staff contests
If suppliers have t-shirts, hats, product samples, cash, etc. we can use some of them as rewards for staff sales contests, for passing training tests, etc. Remember, the more excited our staff is to sell a product, the better the sales are going to be.
7. Information
Ironically, the one thing we want which has no real direct cost to the supplier is often the hardest for us to get. In order for us to educate ourselves, our staff and then our guests about what makes a product worth buying, we need to know a lot about it. That an item is "made with the best ingredients" or is "fresh" really doesn’t help us much. In order to effectively sell the product we need specifics. The more we know, the more effectively we can teach our guests about the food we're selling, the more likely we are to successfully convince them that it's worth buying. More than anything else we need to know what makes a given item special, what sets it apart from its competitor’s offerings. We like to learn the story behind the product, where it comes from, how it got there, etc. We’re interested in hearing its history, how it was eaten in earlier eras, how it came to be made in the area in which it originated, etc. We’re interested in the technical details of how it’s made. The more we know the better job we’ll be able to do of handling and selling the item effectively.
Information like this is helpful in any form. The most effective communication will usually come in a combination of as many of the following as possible. On the assumption that none of us ever really have enough money in our marketing budgets I’ve focused on ways suppliers can help get us information without having to spend huge sums.
a) In writing. Simply written out in a format we can copy and give to staff and guests is great. We're more interested in the content than we are in some fancy layout and graphic design so if you don't have any fancy brochures don't worry about it. Just sit down at the computer and write down everything you can think of. Accurate information that comes from the heart is far more valuable than expensive brochures that say little or nothing of consequence.
b) Videos or Digital Photos. While professional filming would be great, decent video images captured on home quality cameras are almost as effective. And they’re definitely a pretty inexpensive way to communicate a lot of what makes a product unique. They give the staff a good understanding of how an item is made or how it might be used. And they’re a big help to staff who learn best with visual images rather than the written word.
c) Articles for our staff newsletter. I'm not talking about reprinting existing brochure—no one wants to be “just another customer.” I'm talking about someone sitting down and writing a few hundred words specifically and directly to our staff, explaining to them why they should be interested in selling your product, and why you're so interested in having us selling it.
d) Personal phone calls or emails directly to staff and managers. If you’re a supplier your initial sales success is likely to come with a shop’s owner, or perhaps an upper level manager. But a big piece of long term success is going to come because the front line staff—the men and woman who are waiting on 95 percent of the customers—are excited about your product. A personal phone call to the owner to check on how things are going is nice. But realistically most owners are buried with work and don’t have time for two more emails a day. On the other hand a personal phone call from the producer to a key staff member just to see how things are going, to share a bit of excited, inquire as to what support might be helpful can go a long ways.
e) Access to web based training. If you have information on line that our staff might access to help with the training work we’re doing we really appreciate it. Access to the web is convenient for staff and can be done from home, work or abroad and once the information has been put on line it can be accessed at relatively low cost by everyone involved.
e) Personal visits to the store. No offense to sales people, but in most cases it's much more effective to actually have the man or woman who makes the food visit than to have a sales person make the trip. When it comes off effectively, there's no better way to build staff energy for a product than to have an enthusiastic, personable, passionate producer visit and spend some time with the crew and our customers.
I’m sure there are other elements of promotional support I’ve forgotten here, but at least that’s a good start for all involved. Regardless of which role you’re in—retailer or producer—we rarely get what we don’t ask for. Money for promotional support or advertising rarely just shows up on its own. Retailers rarely map out a year’s worth of promotional activities without a push from the people’s whose products are being promoted. For a phone call or an email you'd be amazed how often people on the “other end” are eager to assist. There’s little to lose and an awful lot to gain. The key again is to start by building mutually rewarding long-term relationships where both the supplier and the seller are benefiting. In the end everyone’s sales can go up, and success can be shared with staff and investors, customers and community alike.