Outlasting the Competition: 3 Tips to Succeed as F&B Wholesaler
Many believed that last year was one of the hardest for the F&B sector. In 2023, we saw that 81% of F&B sellers saw a drastic increase in cost per product. This has led to another massive issue where the rising costs are being passed on to customers making it harder to keep up with competitors. Hence, here are 3 proven strategies to not just survive but thrive in the F&B market.
- Spot Weaknesses & Boost Strengths
With rising costs, it becomes even more essential to be more effective with your business practices. Hence, we recommend carving out 1 day in a month where you can analyze your day-to-day operations (from the order taking to the delivery). This will ensure the whole business cycle doesn’t have any weak spots which could ruin your business. Once you’ve identified the low-hanging fruit, ensure you are taking the right steps to convert the weakness into a strength.
During a self-assessment, Blue Apron identified its high packaging costs as a major pain point. They conducted a detailed analysis of materials, suppliers, and packing techniques which led to switching to a thinner, yet sturdy cardboard, optimizing box sizes, and implementing automated packing machines. Result: They slashed packaging costs by 20%, freeing up resources for recipe development and customer acquisition, propelling them to significant growth.
Every supplier has a weakness, whether it's a limited product range, inconsistent service, or a high price tag that drives customers away hence the self-assessment is the best way to conduct it. Reach out to us for a free consultation on how to keep costs low and profits high in the F&B space.
- Boost Revenue Stability by cultivating strong customer loyalty in the F&B Industry
Loyalty is why Tesco is one the biggest wholesalers in the UK and why they consistently keep growing too. For them, it was their Clubcard which can save loyal customers up to 50% on their weekly food shop. Here at Orderit, we’re key believers in ensuring that our customers have the best experience possible on our platform and that drives our growth and motivation to work. Question for our blog community: how often do you speak to your customers every week?
What are some tips to drive loyalty within the F&B space? Experts in the F&B industry say the best way to drive customer loyalty is to make them feel part of the family. An easy way to do that is to actively seek feedback from customers on their experience, and use this information to identify areas for improvement. This makes the clients feel heard and valued, and take their feedback on board to continuously enhance your service.
At Orderit, we discovered that a messy ordering process and receiving the wrong orders is the top reason for a client to switch supplier partners. Hence we recommend using tools like Orderit Auto-Pilot. Orderit AutoPilot help you increase your efficiency and profit margins by acting as your 24/7 order-taking assistant who accepts orders across all channels, whether your clients send them via email, phone, or Whatsapp, and books them straight into your ERP system (find out more information here). Let us know if you’d like a free demo!
- Collaborate with Brands to Ensure Success in The F&B Industry
In school, we all thought that teamwork makes the dream work. That couldn’t be more true in the F&B space. We have seen industry giants collaborate with smaller firms with complementary businesses and leverage their combined resources to launch super-powerful campaigns. This not only attracts more customers in the short term but ensures a long-term growth strategy for your business.
Consider the recent collaboration between Ben & Jerry’s and Tony’s Chocolonely. The two renowned brands joined forces to introduce 'a Chocolatey Love A-Fair,' featuring limited-edition chocolate bars and ice cream tubs. Rooted in shared values of social justice, this partnership goes beyond delectable flavours, as both brands are committed to combating modern slavery and child labour in the cocoa industry. With Ben & Jerry’s strong advocacy for human rights and environmental protection aligning seamlessly with Tony’s focus on the well-being of cocoa farmers, the collaboration is a natural fit, enhancing its likelihood of success. The authenticity of their joint commitment shines through, as all cocoa beans are sourced through Tony’s Open Chain, upholding rigorous standards for social and environmental practices. This partnership exemplifies how collaboration based on shared social values can drive meaningful change and success. By adopting the three strategic hacks outlined – conduct a self-assessment where you analyse the day-to-day operations to ensure there are no faults in your operations. The next hack was to ensure you are cultivating strong customer loyalty which leads to revenue stability. A simple tool here is to use the Orderit Auto-Pilot to ensure you never send the wrong order to your client. Finally, the last hack was to collaborate with complementary businesses which could lead to innovation and increased revenue.
Are there any other hacks your business uses/found helpful in ensuring to stay ahead of competitors? Or are there any other topics you’d like us to cover in our blog? Please do let us know at [email protected].