Wednesday, September 17, 2014

Convenience Store Distributors

The success of any new product relies heavily on having the right distribution channel. A distribution channel is the route a product takes to get from production all the way to the end user. A distribution channel can include intermediaries such as manufacturers, wholesalers, retailers and more. When choosing a distribution strategy, it’s important to research the end users and their purchasing habits. If a company is able to find out where their target market shops, how they shop, and when they shop, this will enable the company to choose the best method for getting the product in their customer’s hands. For many products, convenience store distribution can be a very profitable route to take due to the fact that c-stores are continually growing and becoming a popular location for consumers to purchase a variety of products. Three potential ways to distribute merchandise in convenience stores are by using wagon jobber distributors, direct store delivery distributors and convenience store merchandisers.

As mentioned above, one way to distribute products to convenience stores is through a wagon-jobber distributor. These distributors, sometimes referred to as rack jobbers, are wholesale companies that purchase space in a store, such as a convenience store, and then are able to stock/display the products of their choosing in that space. In order to fill that space, wagon jobbers purchase products and retain ownership of them [the products] until they are sold. After the merchandise has been sold, wagon jobbers split the profits between themselves and the retailer. Wagon jobbers visit their retailers often in order to take inventory, maintain displays and determine the need for restocking.
Another way for a company to get their merchandise into convenience stores is through a direct store delivery distributor. Usually manufacturers use a direct store delivery distribution method for products such as food, beverages and personal care products. Direct store delivery distributors are also utilized for products that need to stay fresh for consumers, such as milk and bread because this method reduces the time that it takes products to travel through the supply chain. By using a direct store delivery distributor, manufacturers can sell and distribute their products directly to the point of sales or point of consumption. Direct store delivery distribution is great for convenience stores because c-stores are typically small and don’t have much room to stock excess inventory and this method solves that problem.

This last method of getting a product into a retailer is through using a convenience store merchandiser. Merchandisers in general are responsible for making sure that the right products are being stocked for the right price and in the right position in the store. Convenience store merchandisers specifically fulfill these responsibilities in convenience stores and work closely with distributors and suppliers. Convenience store merchandisers are also responsible for setting up promotional displays in order to drive sales of certain products.

While there are many factors that affect the success of a product, having a well thought-out distribution strategy is one of the most important components in the process. For many products, convenience stores are lucrative avenues for distributing goods due to the popularity of c-stores and the variety of items they now offer. Using wagon jobbers or direct store delivery distributors coupled with convenience store merchandisers are great methods to use when distributing to convenience stores and can aid in the success of a product.

We have an excellent way for you to get your product into 1,000’s of Independent Convenience Store Distributors while building the story of your brand moving it forward to major channels of distribution. We will have our distributors bring your product and signage in to their busy c-stores.   You pick the cities and how many stores you want to Blitz.  Our distributors service these stores weekly and have an excellent working relationship with the store owners.