Finding Your Markets Webinar Series “Getting Into Grocery Stores”

Sponsored by Bright Agrotech www.brightagrotech.com

Webinar Overview 1. Pros and cons of selling to grocery stores !2. Grocery store accounts !3. Working with Produce Managers & General Managers !4. The Sales Process !5. Pricing !6. Compliance

Dr. Nate Storey

Bright Agrotech

The Pros and cons of selling to grocery stores 1Pros Cons

The Pros

Allows you to move high volumes through fewer accounts !!

Live sales with ZipGrow towers (reduce production costs) !

Selling to grocery stores…

!Achieve relatively predictable income

More Pros

- Keep distribution networks smaller in comparison to your production capacity (sometimes) !

- A good experience at one store can open the doors of others in the chain

The Cons

Often requires more certifications !

!Requires a good deal of account management

!!

Requires more negotiation regarding pricing !

Selling to grocery stores…

Requires more production management discipline !

Requires insurance- “additional insured”

ZipGrow towers are made to be lightweight and easily transported from farm to store.

2 Grocery Store Accounts All accounts require appropriate logistic support !All accounts require one-on-one support

!This will typically happen with the

Produce Manager or PM

3 Produce Managers

Product Operations Personnel Arrangement/Aesthetic/Environment

PMs are typically responsible for the Produce Aisle

The General Manager (GM) runs the Store

General Managers

The General Manager (GM) oftentimes has to sign off on new accounts ! The Produce Manager (PM) will advocate for you if you convince him of the quality of your product

If the GM signs off on picking you up, your account will be managed by the PM from then on.

! The PM is the person you approach initially

!!Most PMs are really great people

How it all works

The produce industry runs on very traditional values !PMs for some chains are often inexperienced/new on the job

!This doesn’t mean they’ll accept your initial price offer without negotiation

4 Sales ProcessApproach and sell the PM on your product/sales concept and pricing Step 1:

Step 2:

Step 3:

Step 4:

Step 5:

Step 6:

Step 7:

Step 8:

If the GM has to sign off on the relationship, schedule a meeting to pitch the GM once you’ve sold the concept/model

Determine Terms and Requirements

! What type of payment options do they offer? How will the logistics of delivery, sales and accounting work? What do they require of you? Inspections and certifications Insurance requirements Internal Approvals and Account Setup Etc.

Set up and communicate your production, delivery and logistic schedule

Complete your compliance work for the account

Work with the PM (and occasionally GM) to implement signage and sales procedures in-store

Remember that this is a relationship and will require you to monitor this account and respond to concerns. Both parties may have to adjust fire as time goes on. Be flexible and accommodating. Treat the account as a priority and an open door to more accounts.

Implement

Pricing info you NEED to know!Know what you need now and what you will need 5 years from now !Know that what you ask for will be a precedent

!Know that reducing price is easy. ! Raising pricing is very difficult. !Overestimate costs. !Protect your margins. !

5 Pricing*

**

**

6

Heath and Safety Certifications/Inspections Best Agricultural Practices/Best Management Practices Production and Management Logs Protocols Standard Food Safety Compliance Insurance Standards (determined

by retailer) Tracking Product/Inventory

Management in store

Safety & Compliance

Grocery accounts can be excellent sources of income !They have some costs, but offer more opportunity than other markets !If you can sell in grocery stores, you can sell everywhere else. !Definitely try to pick up some store accounts!

Final Thoughts on Grocery Stores 7

Batman would love to start selling to his local supermarket

This Week Only:

Purchase a 50 tower bundle and get 2 free store displays on us

The Bright Agrotech Team

Chris

Paul

Noah

Questions?