If you own or manage a business that produces products or services that sell through a retail channel, there are two pricing scenarios that you need to develop so that you can determine what your selling price will be to either the retailer and the distributor that will sell to the retailer and within these two scenarios, two additional scenarios for a pick up price (at the manufacturing or warehouse location) or delivered price. Potentially, you can have multiple delivered prices (full truck load, limited truck load, etc.) as illustrated below:
So you have a product that you sell locally, for now. Whether it is a local cupcake business, bread producer, toy manufacturer, etc. this will apply to you because your goal is success and the more success, the better…right?
Growing your business requires incremental dollar sales month over month, year over year. Holding everything constant (product, price, distribution, placement, etc.) there is no reason to believe that the customers that you currently sell to or the shop that you currently sell at will produce more sales one year over the next. Therefore, the only way to grow when holding everything constant is to increase the number of stores that you are selling to.
Food Trucks and Touch Screens?
Burger King is creating a good amount of marketing buzz around their new menu and the experience that consumers will have. They have redeveloped their menu, which is somewhat reminiscent of McDonald’s to be more health conscious by adding salad and wraps options. They will somehow be incorporating a touchscreen into their point of sale and using food trucks to get their product out to the masses.