Tuesday, September 8, 2009

Prime Vendor Programs and the Cowboy Hat

Have I ever told you the story about the cowboy hat?

We had a meat specialist that went to help out at the Alliant Foodservice Texas Foodshow and when he came home he dropped his expense reports for his rental car, room, drinks he bought for customers, and an expense for a large 10 gallon cowboy hat. The Marketing director (his boss) kicked the hat report back to him and told him it was frivolous and uneccessary for the show. In other words "the hat was on him". The next month the meat guy came in with a huge stack of expenses, coffee for customers, parking, tolls, postage, lunches, dinners, and more. He drops the thick stack on Marketing Directors desk and turns to walk out. When he got to the door he did a half turn and said "Marketing Director Guy? See if you can find the hat."

The point of that story to me is that every distributor has a minimum expense to do business and they have to pass on those expenses one way or another. So your pork ribs, chicken breasts, and pink detergent may be amazing prices, and every distributor may be fighting to the penny to get you the best price, but you better watch the sugar packets, the foil, and (what was that other one I found..um oh ) spiced Chili Beans! I recently did price comparisons at two restaurants and the $11.00 box of sugar packets from my competitor was $30.00, and the $22.00 spiced beans were $44.00-but boy the competitor got me by a penny on the chicken breast that week!! Which leads to the next point, don't get so hung up on the pennies that you are missing the dollars.

Call me about a Prime Vendor program that you can trust.

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