Food distributors are very important in the supply chains. They are usually sorted after when direct marketing is no more feasible because of pressures and costs the company will incur if they go down that lane. Food distributors help them reach a very wide audience and broaden their customer base at a moderate cost. Do you think you have the skills to make it as a food distributor? This article is worth your reading!
Food distributors—Who are they?
Generally, they are people who buy food and beverage products in large amounts from producers, store them, and sell them directly to retailers. Voila, money is made! It’s interesting to note that most of the foods or beverages we consume are gotten from food distributors in Australia. The reason is simple. Producers or manufacturers cannot market their products directly to their consumers. Remember, there are billions of people in the world, and millions or thousands in that number may be your customer. How do you want to reach every one of them? Impossible is the right word that describes such a situation.
How to become one
Major food distributors in Australia have the advantage of controlling the market. They buy in bulk and compete effectively with other competitors who sell the same product or similar one. Your journey to becoming a major food distributor start with:
- Decision: What do you want to sell? Canned products, meats, natural products, perishable products, etc. You must decide on what you want to distribute in the market. Remember, you cannot focus on all of the products or beverages out there, it will overwhelm you! Make proper and enough research, then decide.
- Register your business. Come up with a business name for what you want to do and register it legally. You’ll go through the rigors of acquiring a license and all of that. You must comply with your local business registration as you go about that.
- Research potential suppliers or producers in the relevant field.
So, you’ve set up your business, and now it’s time to seek out relevant suppliers. You should endeavor to do proper research before you commit. And, you may have to seek the counsel of one who’s already in the business.
- Do the mathematics. Yes, now it’s time to plan your budget and your expenditure. Do you want to take a loan or do you have enough money to give you a good start? How much does a warehouse cost in your locality? Will you hire the services of the relevant employees? You should factor all these in when doing your logistics.
- Application: Finally apply as a distributor when you eventually contact a manufacturer or distributor. Now it’s time to join the league of food distributors in Australia!
Skills you Need
Successful food distributors in Australia have skills that make them stand out and you must acquire all or if not most of them. You must have skills ranging from negotiation skills, sales skills, operational skills, research skills, and communication skills down to interpersonal skills! This will help establish a relationship with your producer or manufacturer and a connection with your target market. Was this article helpful enough? Food distributors rake in tons of money a year! I bet you were not told that!