The power balance in business makes me really angry, really genuinely angry.
I realise I’m biting the bait, I have this product and am choosing to persist - but securing a listing is nowhere near as celebratory as it may look.
Rules shape the food industry, probably other industries too - they are non-negotiable. From trying to get in front of and pitch to a buyer to if/ when they place an order.
For example, I am currently in touch with a distributor. Amazing (she replied!), they could open the doors to new shops and customers, often they are the only way to get onto supermarket and health-shop shelves.
But, what is not advertised, not only do they want 62% margin (split between themselves and the end customer) but also I have to commit to their new supplier marketing bundle at £1,999. I went back and said, with the current cost inflation, as I’m sure you can appreciate, I offered 54%, they asked me to revise; I went back with 59% and (you can guess where this is going), can you look into it again?
If I sell at 62% my product will be loss making (it costs under £3 to manufacture, just, and on top of delivery - there is no chance of profit). Will the risk pay off or should I politely decline?
If I say no, I’m back to square one of trying to secure my own customers, if I succumb and agree to their costs, there is still no guaranteed security.
Last October, I did exactly this - dropped the cost, agreed to a workable MOQ, sent samples; I chased (and chased) for feedback, received a very apologetic response, and expected the next email to contain a contract or, good news! (Error on my behalf). Instead, they turned around and said no, the category is already quite saturated. I was on holiday at the time and cried when I read the email. So much false hope, being strung along this far felt unfair.
In a previous blog post, I mentioned being in touch with two retailers since May and September 2021, including seven different people, one of whom has been on maternity leave and come back in that time. The latter has ignored me for the best part of a year and the other recently said they aren’t reviewing the category until April 2023, which begs the question of why did I send at least 12 (free) jars of product, including two weeks ago, and why did they ask me to pitch (twice) in the first place?
Finally (last rant), my current distributor, since July, unfortunately brings the same frustrations. They require a certain marketing spend on top of high margins; an order was placed and then, silence. They don’t update me weekly or monthly, I don’t receive their customer list - out of fear I will take it and sell directly to the customer rather than through them (my thinking: if I agreed to work with them, what do I have to gain by not working with them?) - and asking for sales updates is like chasing a ghost. Presently speaking, I have literally received no data - only an email asking for next year’s marketing plan…
It's sad, really. The relationship between buyers and brands is not as transparent as I wish or perhaps you would like to think. I am theirs and yet I don’t feel looked after. I want to help, wish I could (without giving them reason to block my email). So how can I achieve sales for us both? Let me try – help me help you.
It's not a two-way relationship, I’m not even sure I would call it one - and for me, it’s personal. I need customers more than they need me. With them, I don’t know where I stand - do they care about our products or am I just one of many transactions?
What’s worse, ironically, is whatever they say, I am always on my best behaviour. Happy (not really) to oblige. They never really know how they make me feel, what they get away with, the power they hold over me. They always win because I have nothing to lose and yet so much more to gain.
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