Wholesale Sales
The definition of wholesale is “the selling of goods in large quantities to be retailed by others”. This is true but not the only way we can whole Yankee Rubs , Sauces and Mixes. You can also wholesale to restaurants, food trucks, Pubs, sausage makers, or any food prep business. You’ll start to see when wholesaling to people in the food industry that their imaginations open and they make the most wonderful dishes, why? Because Yankee Rubs, Sauces and Mixes are unique and wonderful.
Wholesaling Techniques and questions:
- Can I wholesale to Restaurants, food trucks, Pubs, eateries?
- Can I wholesale to retail stores?
- Pricing wholesale
- What can you expect in wholesaling and reoccurring orders
- closing thoughts on wholesale
Question #1 Can I wholesale to Restaurants, Food Trucks, Pubs, Eateries ?
When it comes to wholesaling Yankee Rubs , Sauces and Mixes you’ll find out that these establishments will be a wonderful opportunity for you.
Did you know that Sweet Carol Swine in partnership with Windjammers Bar and Grill Rochester, NY) took 2nd in the National Chicken Wing Contest in 2017 in Buffalo NY? It was won with Yankee Blueberry Rub along with Windjammer’s Blueberry Finishing Sauce, which both can be purchased and sold here. Windjammer’s Bar and Grill has also dedicated a portion of their menu to Yankee Rub Wings…Thank you Selover family.
When these eateries taste the unique Fruit Finishing Sauces and Fruit Spices, watch the Chef’s-Cooks-Caterers or Food Business owners imaginations go.
For example:
*I have a Bar and Grill up here in Rochester who uses The Yankee Apple Rub to make wing Sauce. They make a Hot Apple Cajun Sauce for their wings.
*There’s another customer of mine here in Rochester that makes Fruit Fish fries.
*I have a food truck customer that makes Peach Pork Bellies, and Cherry Ribs
*I have a pizza shop owner that buys Yankee Cornbread Mixes and sells them by the slice.
*There’s a deli in Buffalo that uses all of the fruit rubs on her wraps and salads.
*I have a Caterer that sells Yankee Peach chicken and buys by the 6 lb bag
*There is a pop corn company who loves to sell Yankee Fruit Rub pop corn HOT!
*I have a restaurant who keeps all of the 3.5 oz. Yankee Fruit rubs on the tables for salad shakers and as a condiment along with the mustard and ketchups
You see, when you introduce Yankee Rubs, Sauces and Mixes to folks that make their living selling food, they love working with our products, because our products are that unique and special.
**So How do I approach and sell to a Restaurant – Food Truck- Pub -Caterer or any other business that makes and sells food for a living?**
Don’t be shy walking into, calling or texting these companies. These companies are always looking for new stuff to make and serve. Their job is to keep their customers happy and satisfied. What do you think “Specials” are. Most of the time eateries will use specials to make dishes for a few things.
1-The food distributor had a sale on an item that’s not on the menu
2-They are trying out new recipes
3-trying to sell items off for changes or discontinued foods on the menu
There are a whole bunch of reasons why eateries have specials but those are some of them. So now that you know that, go into an establishment confident that you have a shot.
Let’s take a Bar and Grill for example, let’s sell to a Windjammer’s Bar and Grill down on the beach and State park of Lake Ontario, a huge place to go with tons of park and beach goer’s.
The first thing I do is bring a sample kit of SCS Rubs and Sauces with me. It’s either before the kitchen’s open around 10 am. I’ll ask “Can I speak to the kitchen manager or the owner of the place” and usually someone is always there. Keep your sales pitch simple guys! A handshake, and smile and introduce yourself. I always say, I have a wonderful new Spice blend for you and I’d like to show it to you. More times then not these people are always interested in new items, but not all of the time.
Spices with Fruit pieces in them and watch their faces, it’s usually a look and an OK…Tell them exactly what you tell your vending customers:
1- a new and wonderful spice
2-The fruit pieces caramelizes when you cook with our products
3-We off Sweet ,Savory, and Hot spices
4-The sauces are fruit infused and have a nice kick with the red chili flakes in them
5- A 6lb Bulk Bag and a Gallon of Windjammer’s Finishing Sauce makes about 100 dozen wings but you can make any type of dish with our products
At this point I ask if they would like them to taste them on wings boneless or regular and more times then not they are dropping down a dozen.
When the hot plate of wings come out the first thing you do is ask what flavor, since you have six different sauces , let’s start with these flavors. The other SCS Rubs don’t have the matching sauces and can be tried as a dry rub wing.
Drizzle the sauce on one wing, then sprinkle a little of the matching Yankee Rub on it, let it sit for 30 secs to caramelize from the heat and taste! I like to pass some around to the staff, because these people know their customers better then anyone and yes the servers have to sell dishes! If they love the taste of Yankee Rubs and Sauces on wings, chicken, pork, fish then it’s easier to sell for them and the Bar and Grill will sell more food!
REMEMBER! When selling to eating establishments, we are in the business to help them sell more food!
Use this attitude going into your sales because folks that’s what this is.
Now they are interested , so this is the point where you tell them we offer spice in large 6 lb bulk bags and sauces in 1 gallon or 24 oz bulk too. they wont be interest in the small bottles of Yankee Spice or Sauces.
If you don’t have a price sheet at this point, please make one. It’s real easy to price
**your price for the products x 35%(more or less , your choice)=Their price**
This is where you also need to include shipping so you can charge them shipping or not but keep that out of the pricing. SCS BBQ will do it’s very best to ship you the product as low as we can but make no mistake, somewhere in that price you give them has to be the shipping costs. This is a very reality of a cost of doing business and every business knows this. You can increase your profit percentage and tell them free shipping or you can add it to the sub total at the bottom of your purchase order.
In Final
This food business just purchased $300 worth of products from you, now ask them if they would like a radius of no sales. This insures their competitors aren’t getting the new spices and sauces, they know where they are, so if your new customer tell you 5 miles or don’t go to that guy, do what they say.
Question #2 “Can I Wholesale to Retail Stores?”
The answer is yes, but sometimes these sales go a little slower then a prepared food business but the sales are usually larger. Retail stores that include Grocery, Novelty stores , camp grounds, spice shops, butchers, or any kind of retailer that sells items for profit, these are usually long sales. What are long sales? Long Sales is exactly what that is. Just think about it, these people put items on a shelf and customers come in to shop, and the items are either purchased or not. Even though there’s no competitors for SCS Rubs, Sauces and Mixes, there are other types of rubs, usually bottles of salt.
The type of retail store matters a lot too. I have a customer who owns a Feed and Supply Store for farm animals, and he wanted some BBQ items in his store, to mix up his inventory selection in his store and support local a local company like SCS BBQ LLC. OK we get the good intensions, but really, would you buy spices in a Farm and Feed Store? How do you think sales are going in that type of store?
Large chain stores vs. large local stores? You might have and uncle or a close friend in a Large store, and they are a GM or in Merchandising, anyways you have a connection and you can make a killing because you got a product and it’s going to fly off the shelves and the reoccurring orders are going to keep coming in….ahhhhh no! The truth, most of those stores don’t care what they have. To them it’s another widget to put on the shelves, besides, all of the hoops you have to jump through, all of the liability and the responsibility of having products on demand…and how about getting paid? Do you really think these big stores will cut you a check on delivery…ahhh no. Get used to the term Net 30 or Net 60, we’ll get into that later on in the lesson, and you DON’T front product to anyone.
If you really want to get into retail stick with the small mom and pops or neighborhood stores. You’ll get a better response and better yet you’ll get paid right away. But you may have to do a little more work, like a “Tastings ” every now and then.
Tastings…Sometimes a retail store who buys from you will require a 2-3 hour tastings. Basically, you’re going to set up a table, usually in the front, with all of your sample products, and ask people if they would like to sample Yankee Rubs, Sauces and Mixes? Bottom line, you are selling for them so they can buy more from you. It’s a fact of life folks. A simple you scratch my back and I’ll scratch yours. It’s fun and you get too interact with people, but your profits were given to you in that check, so if you want to continue a Good Faith relationship with that retail store, then you’ll have to dedicate a few hours a month , free of charge, to support and increase sales for your client.
We are not saying that you can’t sell to the big stores, but as a Direct Sales person, it’s more profitable to sell products to the local businesses.
Question #3 Pricing wholesaling, how do I go about this?
Ok this can get tricky so We’ll try and keep this as simple as we can. Because this is why we do this, to make money and not give our products or MONEY away.
**Make NO mistake these business are also in business and they too have to kick, scratch claw and yes sometimes steal to make profits***
This is business folks so just have a little knowledge behind you and you will go far. The one thing you need to know and follow and stick to:
**your prices are your prices**
If you’re working with a bar grill restaurant or a food selling business you will more then likely be working with the owners directly and they will have no problem buying from you at all! These guys are the food soldiers, working the kitchens doing what they do best, make awesome food and serve their customers.
Retail is this way until you get to the large retail stores where people are working 9-5 and could care less what they are selling.
**Business will buy from you or they won’t**
That simple! Don’t try and reinvent the wheel
KEEP YOUR EMOTIONS OUT OF SALES, IT’S BUSINESS
So let’s go into getting paid!
Business has a few types of payment structures, direct payments or Net 30.
Direct payment is what we use at SCS BBQ LLC, you purchase products from us, you pay with a credit card and we send you products. Most companies do it this way, it’s cleaner and the business transaction is completed. these are the companies you want to deal with. A purchase-then a delivery and then payment. Simple! Now remember, you like us, have to purchase the materials first so you need to decide as The Direct Sales Marketer if you need payment first or after delivery. I’m sure we all have heard horror stories about companies making large orders and stiffing people on payment. The people that are stiffed usually are the ones stuck with the bill. SO DON’T BE THAT PERSON!
Business isn’t about being understanding or nice when it comes to ordering and payment, it’s about Business so everyone makes a little during the sales. That’s Free market and capitalism. You’ve heard the term “It’s only Business” and that’s the way you need to be. When you get an order a few things happen.
1-you have someone asking for something you have
2-you come up with an agreement of payment
3-You will get what they want and deliver it to them
4-They will pay for it (either up front or upon delivery)
5- both parties satisfied
This is business folks, everything else in between is a part of it, but just off shoots from above.
*You need to keep this mindset**
Now it’s up to you what business you’re dealing with. If they are big orders and you are uncomfortable purchasing large amounts of products and you are unsure if that business will stiff you for it or not, then ask for half down. This shows Good Faith and also Good Business.
Make a Purchase Order, take their order, if it requires half down have them cut you a check or a CC purchase and take that money. If you know the person or know that this company has a good reputation of paying bills, then take the order and make your purchase.
NET 30 or NET 60 or even NET 90
Fancy terms for Credit! You need to use your own judgment on whether you are going to wait until you get paid. I have 1 customer that I let use Net 30 , that is 30 days until i get paid! It’s a high volume fish and meat market here in Rochester NY and they order 4 times a year with big orders and on day 31 I have a check! Remember, I have to purchase the goods too, so I’m investing my hard earned money with the hopes and expectations that I’m going to make 35% on that order, and I do.
You need to ask yourselves, are you willing to do this? I do it for 1 customer only! If you are getting a song and dance act from companies then go to another company. Remember, they want to Buy or they don’t.
What is a good profit for wholesaling the food making businesses?
We call it COST PLUS and use 35% as your starting point
Let’s take for example:
You go to a Bar-Grill and they ordered 1 gallon of Windjammer’s Blueberry Finishing Sauce and a 6 lb Bulk bag of Yankee Blueberry Rub what do we charge them?
You know you are purchasing both of those products for :
$22.00 and $31.10 which comes too $53.10 your cost
$53.10 x 35% = $71.69 for the order.
you just made $18 and some change! Congratulations.
Now do you need to make 35%, no you can make what ever you want, more or less depending on what the volume its going to be, is the owner a friend or family? Maybe 30%, it’s all your call!
Here is the formula for figuring out the prices with Cost Plus
53.10 x 1.35= 71.69
Keep it that simple folks!
Don’t forget shipping either, you can either pass that cost on to your customer, maybe take on half or paid for it all…it’s totally up to you.
****Here’s a tip, charge a little more in percentages, use Cost plus 40% and use that extra 5% to cover shipping and call it free shipping. This is a good way to do business and keep all costs up front! ****
Wholesaling for Retail
OK, you have a neighborhood store that LOVES Yankee Rubs, Sauces and Mixes and wants to carry the entire line of products!
SO NOW WHAT?
Retail stores make their profits based on giving their customers a clean and safe place to shop. Sometimes these stores are specialty stores, or have themes, music, or whatever, but they all have something in common, They are in the market of selling stuff! They put items on the shelf and they let customers buy. That’s really what it comes down to. So what are the expectations of retail?
NEVER EVER PAY FOR RETAIL SPACE
Retail stores need to almost make 50% or more. I have customers (farm markets) that automatically double the wholesale cost…DONE! They know their customers and so do you , really. When you go into a farm market what do you automatically think ?
Quality…that’s right. You know they don’t sell crap, so you as the customer know you’re going to pay a little more for that product. You have it in your mind that The Amish made it or The products were hand made and the maple syrup was just extracted yesterday from the maple trees down the road! That’s their advantage to sales.
So lets take an example of pricing to retail and yes we at SCS do the same thing:
traditionally we take Cost Plus at 35% and that’s it right? NO! When it comes to retail your Cost Plus is around 20% (plus or minus). That’s just the way it is. If you can get away with 35% then GO FOR IT but in reality this is how it works:
A retail Store wants to purchase a bottle of Yankee Apple 15 oz, let’s use that as an example!
$6.10 x suggested 20% =
6.10 x 1.20= 7.32
$7.32 is what the retail store will purchase that bottle from you for. Now are you making a profit? The answer is yes! but not at 35% or higher like in vending. So why bother, well that’s up to you. 20% is a good profit margin for selling to the sellers. they take on the selling and not you. They have the insurances, the rent , the utilities and payroll, not you. So now that 20% doesn’t look to bad now, right?
Maybe you have to go down a few points (% points) to make the sale, or maybe you can sell for more points, either way this is a good starting point for you to use.
The suggested Retail price for that one bottle of Yankee Apple rub now becomes $10.25
$7.32 x 1.40% = $10.25
Retail stores need to see 35% or more to make it. Depending on your location and who you are selling too, you can sell increase your profit points up to 25% as long as you don’t price that product out of the market.
The whole idea is for the retail store to sell out and order more from you…so don’t be greedy, take little profits and those little profits will grow into many orders and bigger profits.
THIS IS RETAIL FOLKS!
Be smart, be fair and be honest! You will make money, just try and not make it all at once, those deals rarely come around, but be ready if it does!
***Remember there are shipping costs, either have your customers pay for shipping directly at a different cost or raise your points to cover shipping***
support@sweetcarolswinebbq.com for any questions anytime!
Question #4 What can you expect in wholesaling and reoccurring orders?
In this section we will talk about your customer service to your customers.
Wholesaling
Wholesaling to the food prep businesses are a little easier and more reoccurring to the retail. Remember you food prep businesses are using the products to sell more food, and the retail businesses are selling products on the shelves. It’s really common sense at this point. So what do you do.
I mean you’re vending and you got a couple of fundraisers going and now you need to check on your customers. Did you give them you card? Are they required to call on you? Well in some cases this works but in most it doesn’t. You know that saying out of site out of mind? Well retail stores are like that. Food Prep not so much!
Call on your customers once a month, ask for the person you’re dealing with. A simple call or text or even a visit…”Hey, how’s it going, can I place an order for you ? Simple communication and feed back and simple good service goes a long way. Don’t make it hard on your customers, and in time they will be calling on you for orders. THEY WILL trust me!
We have some caterer’s that we do business with and they are getting more accounts because the food is so much different and good, and they order from us once a month. Nice orders too.
For Retail it’s a little different, these guys will only purchase more orders when the shelves are getting low! Again, most retail stores are selling “widgets” and they don’t care what that “widget” is, as long as it’s moving and making them money. You’ll need to call on them once a month, sometimes every two months depending on sales. Again you maybe asked to do a Tastings or two, but that’s how we keep in the Retail business.
Keep a good list of your customers. Keep a track on when you called on them. God Customer Service is Good Customer Service…Be Friendly, Honest and not greedy!
Good Products-Good People
Closing #5 Our closing thoughts on wholesale Sales
Unlike any Direct Sales Company like Tastefully Simple, Avon, Pampered chef, etc you can sell our products to Retail Stores and Food Prep Businesses.
We aren’t a Giant Conglomerate making huge assembly lines in China someplace making Jars of crap. Sweet Carol swine BBQ LLC make unique and wonderful products by good people from an American Company.
Our products are made fresh and you and your customers will soon see that in the taste and freshness.
Again, you are the Boss and you keep the profits, not answering to anyone, or sharing the products with a “Manager”
Selling to Retail companies are good profits, you just need to know what you are doing, know how to do it and what to expect. We at SCS BBQ LLC knows this and wants to pass that information to you, our customers.
Wholesaling is a different world, you pretty much become the distributor so keep it simple and sell what you can.
It’s food, not rocket science! Just beware that there are mostly Good people, hard working people , just looking for an edge, a little something different to make or sell and WE know we have that product line! But also keep in mind that are some not so good people, these people are finding other ways to make a buck. You’ll know right away. Don’t let it bother you, this is America and a Free Market. The good people will usually prevail in a Free Market environment and the bad weed themselves out.
Remember when selling wholesale, keep your sales easy, make sure you’re getting paid and keep things on the up and up!
Don’t pay for Retail space
This practice is done in the big stores with the big companies. You know the stores I’m talking about . Some of these stores are charging THOUSDANDS of dollars to be on the shelves…that’s nuts! No matter what the price don’t pay it. There are other ways to help your clients with shelf space if they don’t have any.
Just email one of our support staff at support@sweetcarolswinebbq.com and we have solutions for retail space for a potential retail store client.
Well we hope our lessons have helped you. Now it’s time to go out and make some money. We at sweet carol Swine BBQ LLC are committed to helping you at all times.
You’ll never walk alone selling Yankee Rubs, Sauces and Mixes
Happy Selling