Jordan Buckner hosted a fantastic webinar this afternoon concerning bill-backs, fees, etc from major distributors. An entire ecosystem of awesome companies has sprung up leveraging AI and new tech to help brands and manufacturers combat any "incorrect" bills.
I can't help but think of why this is happening in the first place. Think of how much time/money/opportunity cost is spent by brands fighting these deductions and fees. That time/money can be spent developing the brand, building new SKUs, traveling to visit customers. ~30% just to get to the shelf is ROUGH.
Do the major distributors provide brands and manufacturers an "in" to thousands of doors and shelves? Absolutely. They're certainly not going away.
What we are building at DisCo is drastic simplification of what a distributor does. No fees, none, ever. Unless we decide to split marketing costs, invest in a DSD route, or another brand BUILDING activity, your financial obligation to DisCo ends when we receive and pay for your product. That is it.
At most major distributors, if the product doesn't sell as well as you thought, you have to pick it up. Not only does that cost a ton of money, it adds to WASTE. Why not partner with a Sharing Excess and donate any PERFECTLY GOOD FOOD to a local organization that can use it while limiting carbon footprint of moving everything around?
EVERYBODY EATS!!!!!