Founder & CEO
Sales, Delivery & In-Store Operations
The independent retailer is the ideal outlet to introduce new products to. They are typically easy to approach, sell to, and very eager to stock new products. They can use new products as a point of difference to attract and maintain loyal customers in the extremely competitive marketplace against big-box retailers.
The small to medium-sized independent retailer is often ignored early on in a product's life cycle; many years later, after a brand has plateaued, this "white space" is given any consideration. At Premier DSD®, we have the distribution platform to flip this approach and give brands a streamlined path to success.
Large corporate chains typically have many restrictions and costs that may be prohibitive to a new brand. There are also category reviews, timing, space planning, and numerous other challenges to overcome before reaching their shelves.
Launching and building a brand in the independent channel is often the most efficient way of achieving critical mass. Once your brand is established in this often overlooked channel, the larger retailers and specialty distributors will be much easier to negotiate with.
Most retailers prefer to work with brands that offer DSD distribution. Through DSD, the labor cost of ordering and stocking falls on the distributor, and the product sales and risk is ultimately that of the distributor and the brand. So, in exchange for shelf or floor space, the retailer gets a guaranteed return.
DSD Distribution allows retailers to receive products faster and more frequently, a good way to avoid running out of stock.
We introduce your brand through sell sheets and online presentations to our nationwide network of distributors. Our sales team works with each distributor to explore the potential opportunity for your products. You will be assigned a direct representative from Premier DSD so you have just one point of contact while we go through the sales outreach process.
The initial group of distributors that believe their is an opportunity in their territory for your products will request samples. We will provide you with a consolidated list of only those distributors that have expressed interest and are committed to exploring a distribution opportunity. You will decide to which distributors, territories and amount of samples you choose to send.
The distributors will evaluate the samples and show them to their customers; which are primarily independent retailers, medium size supermarkets, high end grocery, convenience and liquor stores. With positive feedback from these retailers, the distributors will be motivated to issue their first purchase order to fill this pipeline.
Distributors will submit purchase orders to Premier DSD; we will consolidate and forward them on to you. We will assist you in obtaining any required credit applications, references, insurance and other forms you require. You decide the terms, distributors are typically expecting net 15 day terms but are willing to pre-pay for the initial order or two to establish the trade relationship. You will ship directly to the each distributor.
Typically, it is best to work backwards from your suggested retail. Your Wholesale Cost should allow 30% margin for the retailer. Your Distributor Cost should be 25% off of your Wholesale Cost. The difference between your Wholesale Cost and FOB Cost will go towards shipping. Your Premier DSD representative will work with you to establish pricing, minimum order quantities and shipping options to ensure all costs and margins are sustainable.
There are no required or mandated promotions, programs, slotting or advertising. There are also no surprise deductions or manufacturer charge-backs. Premier DSD© offers a completely transparent program with all costs known up front. We do recommend configuring your pricing to allow for healthy margins to promote your products and build brand awareness, we will help you navigate through this complex area.
Premier DSD ® works on a standard brokers commission with a one time nominal start up fee.