InsideFood Message Board
Sign up Calendar
 
 
 


Reply
  Author   Comment  
Texaspeddler2

Newbie
Registered:
Posts: 1
Reply with quote  #1 
Any sales folks out there experiencing Opcos raising pricing that’s out of the ordinary or is just a Texas thing? Getting harder to make some money out there...
0
broadliner

Avatar / Picture

Senior Member III
Registered:
Posts: 742
Reply with quote  #2 
USF and Sysco want to keep all the money for shareholder dividends. 
0
commoditiesguy

Senior Member
Registered:
Posts: 195
Reply with quote  #3 
Well, as they, everything is bigger in Texas.  Apparently, that flows through to your pricing.
All kidding aside, broadliner is correct.

Sysco and USF (and PFG, is working on getting there) have a priority list:
a - Vendor income
b - Ways to reduce costs
c - Customer growth/support

Once you figure out that c is inversely proportion to (a + b), that's all the math you need to know these days..........
 
0
Investigator

Avatar / Picture

Prophet/Sage
Registered:
Posts: 1,307
Reply with quote  #4 
There is no such thing as "Vendor Income", there is only additional income gouged from the operator base which the vendor accrues and then returns to it's distributor partners in crime. Operators and their customers fund the whole shebang.
0
Truth

Avatar / Picture

Senior Member
Registered:
Posts: 124
Reply with quote  #5 
They agree to pay a higher invoice price for the opportunity to get more earned income. With the earned income they don't have to compensate the salesperson and they don't have to pass on lower prices to the customers. The distributors are both raising their profits by having higher prices and lowering their cost of doing business by paying lower commissions at the same time.

The customers and the sales force are getting hosed................

__________________
ADAPT TO CHANGE OR BE CONSUMED BY CHANGE
0
broadliner

Avatar / Picture

Senior Member III
Registered:
Posts: 742
Reply with quote  #6 
I think it's time for Sysco and USF reps to start looking at the bigger independent distributors in their areas. I started my career at a family run independent. We were bought by bigger company, but there was still that family feel. USF and Sysco are more concerned with corporate bonuses and shareholder dividends. They don't care if the sales reps make a dime.

I know there are independents out there who are doing well against the Big Two. A lot of them geared up in anticipation of the Sysco-USF merger. They added lines and trucks. There will be less micromanagement and more chances to make money without screwing your customers.

This is a people business. Most reps will be able to take a lot of their customers with them. Sysco and USF will be reduced to selling exclusive items (chemicals, coffee, private label items) until they can be switched out for similar products.

Quote:
Originally Posted by Truth
They agree to pay a higher invoice price for the opportunity to get more earned income. With the earned income they don't have to compensate the salesperson and they don't have to pass on lower prices to the customers. The distributors are both raising their profits by having higher prices and lowering their cost of doing business by paying lower commissions at the same time.

The customers and the sales force are getting hosed................
0
brokerexpert

Member
Registered:
Posts: 50
Reply with quote  #7 
Quote:
Originally Posted by Investigator
There is no such thing as "Vendor Income", there is only additional income gouged from the operator base which the vendor accrues and then returns to it's distributor partners in crime. Operators and their customers fund the whole shebang.


I respectfully disagree, it is really called marketing programs, which the vendor is required to pay in order to keep his products in stock and new products stocked, as well as rebates to some high volume operators. These programs have steadily increased over the years, and have replaced the idea of actually selling food at a profit with a reasonable markup. This doesn't include the vendor funded sales contests and trips, food shows etc. I know this because all of these costs were deducted from my sales as a broker, and thus my commissions were reduced. I represented the vendors, and they constantly complained about paying all these fees, but they paid them in order to keep their business. I am not taking up for the vendors just giving some facts that the vendors certainly aren't partners in crime. This is of course all possible due to consolidation and a lack of competition.
0
Investigator

Avatar / Picture

Prophet/Sage
Registered:
Posts: 1,307
Reply with quote  #8 
Quote:
Originally Posted by brokerexpert


I respectfully disagree, it is really called marketing programs, which the vendor is required to pay in order to keep his products in stock and new products stocked, as well as rebates to some high volume operators. These programs have steadily increased over the years, and have replaced the idea of actually selling food at a profit with a reasonable markup. This doesn't include the vendor funded sales contests and trips, food shows etc. I know this because all of these costs were deducted from my sales as a broker, and thus my commissions were reduced. I represented the vendors, and they constantly complained about paying all these fees, but they paid them in order to keep their business. I am not taking up for the vendors just giving some facts that the vendors certainly aren't partners in crime. This is of course all possible due to consolidation and a lack of competition.


Vendors are not "partners in crime"? Then why do they invoice at the requested "inflated" price only to accrue that "spread" and return it to the distributor? And yes the distributors suck blood from their sales force through this process as well. Poster "Truth" already mentioned this in a posting above. 

And as a broker how much money is your company kicking back? To quote fictional Wall Street character Gordon Gekko "What you're the 12th man on the deal team and they didnt inform you"?
0
Previous Topic | Next Topic
Print
Reply

Easily create a Forum Website with Website Toolbox.