A customer recently attained a 40% savings opportunity which will increase margins on their hot beverage program very quickly. Here’s how to do that for anyone who wants better margins.
Today’s post is by Dave Wenig Senior Vice President of Sales and Services at SafeSourcing Inc
First, I love coffee. I drink too much and always want more. Like many, I often find myself on the road and grabbing a coffee at a gas station. It’s been great to experience the revolution over the past several years as the convenience stores have continued to improve their offering with many now offering delicious coffees including some that are bean-to-cup.
But you’re not here to read about my habits. You want to know how we attained a >40% savings on the costs of coffee and cappuccino for one of our c-store customers this month. Here’s the breakdown for anyone who wants to immediately increase their margins as well.
Step 1: SafeSourcing will need to understand your spend over a 12 month period. The details are relatively basic and with any luck, you’ll have everything we need in a simple product movement report or invoices.
Step 2: SafeSourcing will develop a tailored RFQ event based on the details you have provided. Based on our understanding of the market and the vendors, we will suggest a variety of vendors who are well-suited to support your needs.
Step 3: You’ll review the details and the RFQ as we have developed it. Once the RFQ is set up accurately, you will simply give your approval for SafeSourcing to move forward.
Step 4: SafeSourcing will take it from here and you’ll enjoy the results after watching your RFQ occur live. In all likelihood, you’ll have between 6 and 10 vendors very actively bidding to earn your business.
Step 5. You will review samples and make your final decisions.
One customer just reported that they’re still enjoying the 32% savings they achieved back in 2019 on their coffee and cappuccino. I truly hope you’ll tell me the same in 4 years.
Dave Wenig is the Senior Vice President of Sales and Services at SafeSourcing Inc. For more information, please contact SafeSourcing.