Replies to post #66685 on Nate's Food Company (NHMD)

[surfkast]

It is tough to get a product into a national chain like Costco, Walmart or any other one.

Posting on message boards or filing 8K's will not cut it.

Here is an excerpt from a Costco VP as an example.

• Visit your local Costco warehouse. Familiarize yourself with the products and the layout of the building before making your pitch to a buyer from the company. “You can’t possibly present an item to us without knowing our business,” Jackson said.

• Your sales through Costco can represent no more than 20 percent of your total business. “If something’s not selling well, we’ll swap it out,” Jackson said. “We don’t want to be the cause of any business going under because they’re no longer dealing with us.”

• You might be asked to test your product through a “road show,” offering it for four days or more to see how consumers respond. This is a good way to test different flavors or sell items that require extra handling or explanation, he said.

• If you sell food, you will need to present records of food-safety certification and audits.

• If you sell nonfood items, make sure your packaging is tough enough to withstand storage and transport to and from warehouses without looking worn.

• Products need to sell briskly, although they don’t need to be in every store. Generally, an item should generate a minimum of $500 to $1,000 in sales each week per warehouse, he said.

• Costco is selective about its merchandise, limiting offerings to 4,000 products per store, and focuses on top-quality products. The company doesn’t accept “seconds” or closeout items, Jackson said.

• Understand your limitations as a company and be honest with Costco about what you can do.

• Jackson also discussed obtaining contracts to provide the company with services from electrical and plumbing services to landscaping and parking lot sweeping. Contractors are required to provide licensing and references, secure $2 million in liability insurance, and limit their use of subcontractors, he said.

• To learn about special opportunities for minority-owned and women-owned companies, click here and search for the term “supplier diversity.”


http://www.sandiegouniontribune.com/sdut-costco-reaches-out-san-diego-suppliers-2010jul29-htmlstory.html