Something wrong with US healthy food distribution model

Something wrong with US healthy food distribution model

What I really cannot digest nowadays is a very slow American new brand sales procedure entering protocol. It seems to me everybody wants to rob me in advance. A retailer told me they want to add a minimum 50% to the price they have to pay. There is reasonable explanation for such dramatic amount : payroll, utility bills, rent, inside store theft, damage, expiration date. Same time a serious retailer does not want to accept a new product(regardless of the quality) from a direct supplier. they want a product to be handled by a well known distributor. Well, a distributor( based on my recent trial with 5 of them) wants to add 30% minimum for that availability + zillion another financial investments from my end in addition. A distributor is not willing to talk to me because I don't manufacture, import and offer a commodity, an everyday needy cheap crap, they want to talk to a broker. A broker in addition to their 10% commission wants a monthly retainer and of course an offer to ship products to a distributor's warehouse for free.

So finally I started my calculation in a reverse direction :

50%+30+10% + free shipping + 15% ongoing discount +2% NET30 +1% warehouse loss = 108%

Can somebody tell me please based on such simple example about the projected original cost of the imported from New Zealand super organic healthy product if the US store retail price is $10.00 ?

Natasha Belanovsky

Event Planning/ Event Coordinator/ Customer Service/ Office Manager/ bookkeeper/

2 年

Any large retailer is usually nationwide for the entire US They will only deal with you if you will be able to supply thousands of pounds and in that case you have to be the manufacturer ??

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