Supermarket Distributor
There are some disadvantages to warehouse programs or direct to warehouse or distribution programs as you will see.
There are some disadvantages to warehouse programs or direct to warehouse or distribution programs as you will see.
Supermarket Distributor
Warehouse Program Disadvantages
Yes, the warehouse program sounds like the perfect way to sell to large chains. Well, it’s not. It does have major disadvantages, the largest being merchandising.
When you use warehouse programs your merchandising is left to store employees, employees that have many other jobs besides merchandising your product. If your product sells out, they have to fill the shelves, place point of purchase material, put up displays. Merchandising is one of the most important things when selling in retail stores. If you don’t have it, you’re in trouble. Many companies using warehouse programs hire merchandisers just for your product in different cities do deal with the problem.
If you are in the beverage industry make sure you visit the beverage consultant experts to get more sales, distribution and retail accounts.
The most expensive thing about this program is slotting. Many times stores ask you to “pay to play”. Many times chains will ask you for these slotting fees. They are fees that you pay to place your product in the stores. This fee can get to the hundred of thousands of dollars.
Another problem is “time to shelf”. This is the time that your product will take to hit the store shelves. When you are not using your own logistics you will be unsure of when your product gets to the stores and even when it does, when it gets to the shelves. Many times you’ll find your product in the store’s warehouse waiting and waiting to be placed on the shelves. This can be huge for you, especially if you are running a test with the stores for a fixed period of time or if you are running advertising in the area and the product is not in the store.
Another disadvantage you can have is all the extra fees. When you deal with warehouse programs you are normally hit with different types of fees. They vary per store chain; the most common are damages and disposable fees. This is when a store damages your product in transportation and charges you for it. On top of this they charge you for throwing it in the trash. This can really add up.
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Yes, the warehouse program sounds like the perfect way to sell to large chains. Well, it’s not. It does have major disadvantages, the largest being merchandising.
When you use warehouse programs your merchandising is left to store employees, employees that have many other jobs besides merchandising your product. If your product sells out, they have to fill the shelves, place point of purchase material, put up displays. Merchandising is one of the most important things when selling in retail stores. If you don’t have it, you’re in trouble. Many companies using warehouse programs hire merchandisers just for your product in different cities do deal with the problem.
If you are in the beverage industry make sure you visit the beverage consultant experts to get more sales, distribution and retail accounts.
The most expensive thing about this program is slotting. Many times stores ask you to “pay to play”. Many times chains will ask you for these slotting fees. They are fees that you pay to place your product in the stores. This fee can get to the hundred of thousands of dollars.
Another problem is “time to shelf”. This is the time that your product will take to hit the store shelves. When you are not using your own logistics you will be unsure of when your product gets to the stores and even when it does, when it gets to the shelves. Many times you’ll find your product in the store’s warehouse waiting and waiting to be placed on the shelves. This can be huge for you, especially if you are running a test with the stores for a fixed period of time or if you are running advertising in the area and the product is not in the store.
Another disadvantage you can have is all the extra fees. When you deal with warehouse programs you are normally hit with different types of fees. They vary per store chain; the most common are damages and disposable fees. This is when a store damages your product in transportation and charges you for it. On top of this they charge you for throwing it in the trash. This can really add up.
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