Grocery buyers are notoriously hard to get a hold of, and once you do, even hard to get them to say yes. I’ve chased down buyers for YEARS before getting a meeting. So how do you get more buyers to say yes? Understanding buyer psychology is crucial for any founder aiming to secure shelf space in grocery stores. Buyers are not only seeking innovative products but also products that can drive revenue and or profitability for their category.
Respect is key in these interactions. At store level, grocery managers juggle a myriad of tasks daily, from handling customers and staff to managing shipments. Calling and pitching your brand in the middle of their busy day or when they are expecting an order might not always be well-received, so be open to finding a better time if they ask. Remember to speak to them as people. It can be nerve-wracking to pitch your product, and the default can often be a super-professional or robotic demeanor. However, buyers appreciate being spoken to as individuals. Be professional, have a sense of humor, listen, and engage.
At the corporate level, consider the buyer’s role, demands, the account itself and its unique priorities first. Buyers aim to maximize revenue, secure brands committed to marketing programs, align their mission with CPG products, and balance the products they select with those they don’t. Understanding these factors can shift your perception of a delayed response from a rejection to a “not right now” to a guidance for you to rethink your pitch to address a different factor.
What CPG Buyers are Looking For
Buyers’ priorities vary by retailer and category, but generally, they look for the products with demonstrated sales velocity, quality and uniqueness of the product, market demand and trends, competitive pricing and margins, consistency and reliability of supply, and a strong brand story that aligns with their values. However, many CPG founders make several mistakes when pitching to buyers.
One common mistake is giving up too quickly. Buyers are busy, and if your emails or calls go unanswered, it’s crucial to keep reaching out respectfully. Persistence shows commitment. Another mistake is handling a “no” poorly. If a buyer says “no” but is polite and friendly about it, feel free to lightly probe to understand if it’s a timing or pricing issue, then revisit in the future. It’s crucial to be humble, polite, and confident without showing entitlement. Buyers see hundreds of brands; a friendly demeanor can set you apart. Additionally, avoid using auto-email technology or following up too frequently. Personalize your outreach to build a genuine relationship.
The Role of Category Reviews
Category reviews are periods when buyers assess various items for a specific set. These reviews can be highly formalized or more casual, depending on the retailer. Reviews are typically tied to reset dates when sections of the store are reorganized. In larger accounts with tens or hundreds of stores, this is a massive undertaking involving many companies, distributors, brands, and merchandising teams, necessitating advance planning.
Buyers use category reviews to coordinate their review of multiple similar products for performance and market fit. They consider criteria such as pricing, innovation, local appeal, and promotional activities. Some buyers may use reviews to defer brands they aren’t ready to commit to, but then it’s even more important to present your brand well during that cycle! To prepare for category reviews, follow the retailer’s directions and customize your presentation to their requirements. Different retailers look for different margins and promotional support. Submit your application in the required format but also reach out personally to the buyer. Include aggressive promotional plans to drive consumer trials and conduct demos to boost sales. Your awareness of and participation in store events and promotions enhances retailer satisfaction.
Promotions are essential. Consumers try products when they are on sale—even a small discount can significantly impact sales velocity. Consider an aggressive promotional plan for your first key retailers to build a story of success that you can present to other retailers for expansion. Presenting these plans during the category review process shows the retailer that you know them, understand what they are looking for, and are prepared to be successful on their shelves.
Get access to hundreds of buyer contacts and retailer category review schedules through Harvest Hub. Pricing is super affordable and you can even get free access by contributing data.
Why Buyers Give Meetings
Buyers agree to meetings for several reasons. They may have seen your product at a model retailer, noticed it at a trade show, had a sales partner recommend it, or found your product specs and pricing compelling. Often, it’s a combination of these factors that inspires a buyer to meet with you. It’s essential to demonstrate potential value to the buyer.
When requesting a meeting via email, keep it concise. Highlight the differentiation of your product in the market, outline your distribution plans, attach a sell sheet, and ask for the meeting. If there’s no response after one or two weeks, follow up with new, relevant information. Avoid follow-ups with no new information. Instead, share updates like a local industry event with great consumer reception, a new SKU, new performance data, or new distribution plans.
Phone calls can also be effective. When calling, be polite, brief, and flexible with your time to accommodate the buyer’s schedule. Explain who you are, the purpose of your call, and express your willingness to find a convenient time for a chat or to present samples.
How to Get a Buyer’s Attention
Crafting an effective email pitch involves clearly outlining your product’s unique selling points and distribution plans. Keep it short and easily digestible. Use social media, trade shows, and other channels to get noticed. Social media is expected, while trade shows offer a chance to make personal connections. Trade shows like Expo West and Fancy Food are opportunities to engage with buyers in a casual, relaxed way. There are different types of trade shows: large national trade shows are for making future connections, while distributor and smaller regional shows are more for immediate order-taking.
Building and maintaining relationships with buyers is crucial. Treat placement as the beginning of a long-term partnership. Understand the retailer’s needs and offer support beyond just pitching your brand. Consider the retailer’s perspective—if you see them as a person with demands and a boss expecting them to achieve certain revenue targets, you’ll have a clearer understanding of their needs.
A great strategy is to offer value outside of just pitching your brand. You could pitch in with an account reset, send a follow-up handwritten note with an invitation to an industry event, or connect over a shared interest. These personal touches help build a lasting relationship.
When to Hire a Salesperson or Agency
Deciding when to bring in outside help to grow your brand is very personal. Some entrepreneurs need support to cover more ground than they can on their own, while others may focus on operations and feel more comfortable hiring sales support early. It makes sense to hire a salesperson or agency when the cost of that hire won’t strain your business. If your existing business supports that hire or almost entirely supports it, hiring sales support can be a liberating and exciting next step.
When hiring a single salesperson, look for experienced, talented individuals with good work ethics. Vet them and call their references–make sure someone you are investing $8k to $12k a month (inclusive of salary, expenses, burden) in is worth their salt! For agencies, find a good cultural fit with industry experience. Integration involves setting clear goals and expectations, focusing on regions, accounts, and targets initially. It’s important to have reasonable expectations and focused priorities. If you hire an agency or person to work on larger accounts, don’t expect them to also pitch hundreds of individual accounts simultaneously. Or, make sure they have programs that make sense from a financial standpoint to do so. Brokers can run from a couple thousand dollars a month on up to $15k or more for large national companies–whether you hire an individual at $8k a month or a broker or an agency for $2k to $15k, make sure the value is there for you, with the understanding that you will need to plan for the long term and not the short term. Not too many things happen quickly in retail!
Securing a buyer’s “yes” is a process that requires preparation, persistence, and strategic thinking. Don’t get discouraged if it takes time to gain placements. Keep professional, persistent, and polite in your approach. If you need assistance, reach out to the Good Now Foods team at info@goodnowfoods.com, who can help you get placement at retailers including Whole Foods Market, Sprouts, Kroger, Natural Grocers, Wegmans, The Fresh Market, and hundreds more accounts nationwide. We love helping brands grow!
