Lizanne Falsetto

THE

RETAIL
GAME

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 Looking back 20 years, the most valuable tool to succeed with the food industry is to understand how the retail game works. I learned the hard way. On my own. The dramatic rise in sales of natural foods and beverages from $1 billion in 1990 to $26 billion in 2016 has encouraged many aspiring entrepreneurs to start natural food business. The fact is it is relatively easy to start selling a natural foods product on line or from your own storefront-all you need is a brand name, a website, source of supply from a local farm, a location, and a Paypal account.

In other words, you can start your natural foods business with a relatively small up front cost. But, because the entry barriers are low, this means there is a high likelihood that the business will discontinue or fail within the first 5 years. My goal is to help you understand the game before you go to market to make wise decisions and avoid costly mistakes that will have an imprint on your brand.

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01

Industry Overview

The simple truth is that Cost of Goods Sold (COGS) is the reality, when everything is the dream. The balance is the integrity of the quality of your product, priced correctly for your target audience, and with sufficient margins where you, your distributor and retailer all make a profit. Creating demand and dialing the right about of volume is the dance.

02

The retail game: ins and outs

For nubies to the food industry, shelf sets, slotting fees, quotas, promos and buybacks are a mystery. But “behind curtain #2” there are more hurdles to getting your excellent product to market than you can possible image, so get your cross trainers out.  Knowledge is everything. Understanding how retail works will be the engine of your success.  

 
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03

Making your money last

When to borrow, what to borrow? Partners, investors, equity plays? So much to think about and all at a moment when your brand is just taking off; needs to grow or innovate; warrants a social media push; should play at a trade show. There are always good reasons to spend money and therefore always the need for criteria and assessment.

 
 

 
 

04

Scalability

Growth, it’s what you want, but how do you handle that? Do you go deep into one geographic region or consumer segment? Do you make a big online play and drive everyone to buy there? Line extensions, innovation, keeping interesting – when, what, how much? All good questions based around the heart of the brand and the love of your consumers.

05

Building  a sales  team

I can tell you from my heart, that surrounding yourself with people of excellence and passion will be your smartest and most satisfying move. These people will help you, teach you, sustain and grow your brand and come up with things that you hadn’t thought of. Your job, is to be the leader, motivator, decision-maker and the one who ultimately carries the responsibility of outcome. Really, it’s a good thing!

 

 In order to best manage your request fill out the below form and we will respond quickly to schedule your phone consultation.

 
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 What is it?

 Often a start-up will either not tell me enough, or tell me too much about their niche. Be clear and concise, any finer detail can be elaborated on if and where need be.

 What problem does your business solve? 

 Who will buy your product or service? Are they male, female, young, old, sick, healthy, from a certain geography or culture? Your business may have plans for global domination, but your product or service will resonate with a certain subset of people first – who will your first adopters be?

 

Who's your target market? 

 Who will buy your product or service? Are they male, female, young, old, sick, healthy, from a certain geography or culture? Your business may have plans for global domination, but your product or service will resonate with a certain subset of people first – who will your first adopters be?

 Marketing 

 How will you create awareness around your product or service? Saying you don’t have the budget to do anything isn’t good enough. Tools such as social media have made it possible for even the smallest players to promote their business. Marketing leads to sales, and sales to profits – investors will look carefully at your ability to generate a return on their capital, marketing dollars well spent can help provide that return.

 Revenues/Costs

 What is, or is the intended price of your product or service – is it affordable? Is there a sufficient or an attractive margin for your business? What are your overheads? What is the projected growth in revenues vs costs (scale) for your business?