Originally posted on Compass Consulting & Solutions – Paul Nottingham
Many years ago, I was in the Food Distribution Business and had a territory consisting of a broad mix of Mom and Pop restaurants, Schools, Daycares and Healthcare facilities. Mixed in with these accounts I also had several Convenience stores or “C” Stores as we called them.
One of my challenges was to be more of a consultant in each of my accounts than my competitors whom I shared the business with. One of my “C” store customers had a very small deli section with a 2 foot hot-case, where they made the traditional Corn dogs and burritos that were a staple of the “C” store lunch crowd. When I got the account, I was excited because they had bought from the same company for years and I was the first new guy they had given a chance to help them boost their business and I was determined to succeed. Boy was in for a challenge! The customer was in a rut so deep they could not see an upside to even keeping the deli program and in fact many of our discussions were about how to make the space where the hot-case was a more profitable spot with Jerky or Novelties (none of which I represented). While I was driving to my next client one day, I happened to stop into a local fast food unit that was featuring a Rib sandwich with the marketing slogan “It’s back for a limited time and get em while they last”. The Idea struck me like a ton of bricks. When I asked to speak to the manager about the promo She told me that they typically ran the special twice a year and that it was a great seller for them each time and it ran for only about 6 weeks. When further questioned she also told me that they did several of these 6-week promos a year and that their marketing team had determined that 6 weeks was about the best time frame for new items and a good rotational cycle.
So, as I dove deeper into this marketing strategy, I found many instances from just about every competitive Food chain in my area and guess what? They were all doing the same thing in some form or another, and they all advertised in Print, Television ads and Radio spots. So being the Highly Motivated, and hungry sales guy I was, I talked to my local Broker about my idea of trying to run some 6 week campaigns for my “C” stores using their products like some of the chains. They loved the idea of trying to use national marketing to help them move their products in our local market and were eager to help out and hopefully grow their brands as well. So, I partnered with my “C” store customer to try this out. I was able to secure the first case of Product for free as a sample, so there was zero risk to the customer and more importantly 100%profit on every sale. Even if he made 10 units per day and only sold 4-5 he made 100% profit on every one he sold. We started off with the Rib sandwich product and I made some simple Bomb-burst signage as a call to action on the customers part, that said something like “Don’t Clown around at lunch- Get the Best Rib sandwich in town right here!” Well, several things happened that first day.
- The customer SOLD OUT and had to make 10 More!
- Several customers mentioned they were really glad to see some new items in the hot case, and others mentioned they liked the sandwich from the chains but hated going in at lunch or waiting in long lines.
- The customer saw value in my efforts and eventually led to my being his prime vendor.
- Trust in my role as a consultant and business partner had been formed.
This program and relationship grew exponentially from that day. In fact that business owner grew into 3 more “C” stores and he built huge Kitchens and hired a full time Deli manager to run the deli and eventually had over 8 feet of hot case space filled everyday with various items. We continued the rotational marketing periods of 4-6 weeks while keeping a few daily staples. The Hot-case business was so profitable that for the first time in many years, he and his wife actually took a vacation, and he was able to bonus his employees at Christmas time. We continued to follow the Marketing trends of the national chains, we even expanded his offerings in other areas as well- Fall coffee flavors (Pumpkin spice, Mint Mochas etc). Sports drinks during summer and football season. Take home Pizzas and popcorn for date night etcaetera.
Small Businesses rarely if ever have the marketing budgets to compete with the big chains in any format- Print, radio or TV. By adjusting your offerings to take advantage of the public’s awareness of key marketing strategies, you can benefit in a big way, and make additional profits without spending a lot of your own money on a hit or miss marketing campaign.