How You CAN Take Your Proprietary Product Out To Market.
Today’s post is written by Heather Powell, Director of Major Accounts and Special Projects at SafeSourcing Inc.
Reminder of what proprietary foods are: those which are not standardized under regulations and may contain primary ingredients and some generic additives. For examples, energy drinks and custard powder which contain starch, dextrose, flavor and color. These foods can be made from milk or milk products, from carbohydrates, with or without a basis of milk, from meat, fish, or eggs, from vegetables, fruits, or nuts, and sometimes from fatty substances.1
So why would you expose your proprietary food item to potentially be copied or even the recipe stolen?
You will have the opportunity to grow your business, your bottom line, and depending on how hands on you are with your product will be added time. Some people have the opportunity to take out parts of their proprietary recipe to bid. What are the most expensive items you purchase to make your product? Are there items that have pricing tied to a market index? Do you just go to a wholesale club or foodservice provider for your ingredients?
Looking at your spend and looking at your savings opportunity may open the opportunities for you to engage suppliers in a bid. In many summer salads, mayonnaise is a key ingredient. Do you have a flavor profile preference? Do you prefer a specific brand? Did you know that you can take your specific requirement to bid? Many of the major manufactures of mayonnaise have participated in online request for quotes through SafeSourcing and our clients have received an average of 20% savings from their preferred brand or flavor profile of mayonnaise.
Determine your item(s) you want to take to market and the volume or quantities you will need, be prepared to have the discussion of a 1-year agreement with no price increases versus a 2- year agreement with an index escalator/de-escalator percentage added. You will also need to provide current pricing, purchase history, invoices, or past contracts to your e-procurement company. Where do you store your item(s)? How often is it shipped to your location? Is freight included or added to your pricing? All of these details will make sure your needs, wants, and expectations are met throughout the process.
In the final part, part six of this series, the author will provide the details of why it is important to test and sample the proprietary product before signing that final contract. Meanwhile, SafeSourcing can assist you in exploring your procurement solutions for your proprietary product on our “Risk Free” trial program for RFPs and RFQs, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.
We look forward to your comments.