Now you try to find a broker for your sauce - someone who has all the contacts and can open doors for you. They're not in the business of helping you launch your business, they'll only be interested once there is a demand. The big chains do their buying through central purchasing, and they've set up business processes designed to make it very difficult for new products from unknown vendors to make it into the store.
Showing up at a local grocery store and giving the store manager a bottle to try may sound like a good idea, but it's not going to get you anywhere unless the store is a standalone store. You can spend months doing this and get nowhere if you don't already have business contacts at the stores. So, armed with your slightly higher retail price, you start to approach the big grocery chains. But you don't have any room in your 33% profit to share with the grocery store, so your price has to go up, perhaps another 25%. You're going to need distribution channels, such as grocery stores or over the internet. You're not going to be able to make more than a small income from selling sauce directly. And we haven't even gotten into the overhead costs such as insurance, gas, warehousing, etc. You'd have to sell 6 bottles an hour, 8 hours a day, just to make minimum wage. You've figured out that a bottle of sauce costs you about $2.00 to make, and you think it will sell for $3.00 - a tidy 33% profit! That business model only works if you're going to sell your sauce directly. So you've got a great family recipe for a barbeque sauce and you're convinced that it's much better than the bottled sauces you buy at the grocery store. I went through this exercise when I created Greg's Happy Sauce, so you can have the benefit of some of the things I've learned.
Stores that sell bbq sauce from macs speed shop series#
This is the first in what will be a series of articles about bottling and selling your own sauce.
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