A Guide to Wholesale for Food Service Product Manufacturers
Introduction
Wholesalers play a crucial role in the supply chain for manufacturers. As the intermediary, a wholesaler, or Cash and Carry, will carefully curate a diverse range of products to stock which must meet their customers’ needs and demands. Wholesalers must consider several key factors when selecting products for their inventory. In this blog, we will cover these components to help understand what it takes to capture the attention of these key industry players: The Wholesaler.
Market Demand and Trends
Wholesalers expertly monitor trends in the market demand, which enables them to determine products most likely to sell. This is achieved through analysing sales data, market research and customer feedback. By understanding what customers are looking for, wholesalers can stock products that have a high probability of success. Wholesalers will prioritise staying ahead of market trends so they can provide retailers with the right products that connect directly with their customer base.
Competitive Advantage
Wholesalers seek products that offer a competitive advantage over similar items in the market. A product can stand out from the competition because of its pioneering design, superior quality, or unique features. The more value a product can provide to a consumer, the better. It is important for manufacturers to demonstrate why their product has a distinct advantage, what its USP’s are, and how this benefits the customer.
Price and Profitability
Wholesalers carefully evaluate the pricing structure of potential products to ensure they can achieve reasonable margins. They will take into account the product's manufacturing costs, wholesale price, and recommended retail price. It is equally important to examine the price sensitivity of their customer base and the overall market. A product priced too high may struggle to gain traction, while one priced too low might not generate enough profit to justify stocking it. It is the Manufacturer’s priority to strike a balance between providing value to wholesalers while ensuring it is feasible and profitable for themselves.
Quality and Reliability
Wholesalers prioritize products that meet high-quality standards and are reliable. They understand that their reputation is on the line when they supply products to retailers. Therefore, wholesalers carefully assess the manufacturing processes, certifications, and product testing procedures employed by potential suppliers. A commitment to quality assurance and consistency is essential for manufacturers to secure partnerships with reputable wholesalers.
Packaging and Presentation
Effective packaging and appealing presentation are critical for catching the attention of both retailers and end consumers. Wholesalers appreciate products that are well-packaged, visually appealing, and designed with practicality in mind. Eye-catching packaging can help products stand out on store shelves and increase their marketability.
Conclusion
We have established that the wholesaler plays a pivotal role in the distribution of goods. By understanding the key considerations of wholesalers when defining which products to stock, the manufacturer is able to align their product offering. The gold standard for any manufacturer is to be able to demonstrate all of the following:
- In-keeping with market demands
- Demonstrate competitive advantage
- Ensure reasonable pricing
- Emphasis on superior quality
- Invest in and create attention-grabbing and attractive packaging
Here at Café Mountain we thoroughly understand the needs of the Wholesale market. Our team have collectively spent the last 40 years sourcing the best quality products at the most competitive prices to best serve the wholesale sector within the Food Service Industry.
Talk to us today and see how we can partner with your wholesale business. Contact us today!