5 Easy Wins to Make More Profit as a Food/Beverage Wholesaler
The food and beverage industry is constantly evolving, and wholesalers are the unsung heroes of the supply chain. They connect manufacturers and operators, making sure that restaurants, cafes, and retailers always have the products they need. But let's face it, keeping profits up in this cut-throat market is no easy feat. That's why we're here to help. In this article, we're giving food and beverage wholesalers five surefire ways to boost their bottom line and stay ahead of the competition. Get ready to take your business to the next level!
The Current Market and the Need for Innovation
The food and beverage wholesale industry is facing numerous challenges that require immediate attention. COVID-19 has disrupted the industry, resulting in wholesalers having to reevaluate their business models and strategies. With the closure of approximately one in ten restaurants, wholesalers have been compelled to diversify their customer base by directly supplying households and individuals.
Given the current climate, wholesalers must be vigilant about price sensitivity, as even a slight increase can lead to the loss of valuable customers. To remain competitive, wholesalers must innovate in their pricing strategies by emphasizing perceived value and quality. This includes everything from the appearance of their products, such as packaging, boxes, bags, and liners, to the vehicles and staff that deliver them.
Moreover, wholesalers must leverage technology to optimize their operations and enhance customer service. Wholesale online ordering system for restaurants and suppliers, B2B wholesale marketplaces, and sales order management software are indispensable tools that can help wholesalers thrive in these challenging times.
To increase profitability in these challenging times, food and beverage wholesalers can implement five specific strategies.
Tip 1: Shift from Price Locks to Margin Locks
In the food and beverage wholesale industry, the traditional approach has been to lock in prices with customers. However, this approach can limit profitability, especially when costs fluctuate. A more innovative strategy is to shift from price locks to margin locks. This approach ensures that you maintain a consistent profit margin, regardless of changes in costs.
Margin locks offer several advantages over price locks. They provide more flexibility and adaptability, allowing you to maintain profitability even when costs increase. They also allow you to better manage risk and uncertainty, which is particularly important in today's volatile market conditions.
Open Pantry is a wholesale online ordering system that can help you implement this strategy. With its advanced features, you can easily manage your pricing and margins, ensuring that you maintain profitability while remaining competitive.
Tip 2: Leverage Technology for Efficiency
In today's digital age, technology plays a crucial role in improving efficiency and customer service. By leveraging technology, you can automate processes, reduce manual tasks, and free up your sales reps to focus on new business.
Open Pantry offers a range of features that can help you achieve this. Its online ordering system simplifies the ordering process, making it easier for your customers to place orders. Its sales order management software automates the order management process, reducing the time and effort required to manage orders.
By leveraging these and other features of Open Pantry, you can improve your efficiency, provide better service to your customers, and ultimately increase your profitability.
Tip 3: Focus on Provenance and Branding
In today's market, consumers are increasingly interested in the provenance of their food. They want to know where their food comes from and how it's produced. This growing interest in food provenance can have a significant impact on purchasing decisions.
As a food and beverage wholesaler, you can leverage this trend by focusing on provenance and branding. By sourcing products with a clear provenance and strong branding, you can attract more customers and command higher prices.
For example, products like Tasmanian Salmon or Hervey Bay oysters, which have a clear provenance and strong branding, can fetch a higher price than generic products. By focusing on these types of products, you can increase your profitability while also meeting the growing demand for food provenance.
Tip 4: Promote Exclusive Brands
In the food and beverage wholesale industry, aligning with exclusive brands can be a game-changer. These brands often have a loyal customer base and a reputation for quality, which can help attract premium clientele to your business. By offering products that are not widely available elsewhere, you can differentiate your business from competitors and justify higher prices, thereby increasing your profit margins.
For instance, partnering with a local craft brewery or a renowned artisanal cheese maker can add unique products to your portfolio that restaurants and cafes are willing to pay a premium for. This strategy not only boosts your profits but also enhances your brand image as a supplier of high-quality, exclusive products.
Tip 5: Adapt to Changing Demand
The food and beverage wholesale industry is not immune to the shifts in consumer behaviour. One of the significant trends is the growing preference for online buying. According to a survey by Gartner, 83% of B2B consumers prefer ordering and paying through eCommerce. This shift necessitates wholesalers to have a robust online ordering system in place to cater to this demand.
Another trend is the increasing interest in locally sourced products. Consumers today are more conscious about the provenance of their food and are willing to pay a premium for locally sourced, fresh produce. As a wholesaler, adapting to this trend and offering locally sourced products can help you attract a new segment of customers and increase your profits.
Adapt With Easy To Use Technology
In the competitive food and beverage wholesale industry, increasing profitability requires innovative strategies. Shifting from price locks to margin locks, leveraging technology for efficiency, focusing on provenance and branding, promoting exclusive brands, and adapting to changing demand are five easy wins that can significantly boost your profits.
Open Pantry, with its comprehensive wholesale online ordering system and focus on provenance and branding, can be your partner in implementing these strategies. Contact Open Pantry today for a demo and see how it can help you increase your profits in the food and beverage wholesale industry.