This document provides guidance on various purchasing strategies and best practices. It discusses considering long-term pricing agreements for stable costs, focusing on core products while not neglecting low volume items, and ensuring "like for like" comparisons during supplier evaluations. Other topics covered include authorized buying lists, monthly purchase data analysis, choosing suppliers, innovating with new brands, maximizing upsell opportunities, and leveraging forgotten markets like waste management to reduce costs.
2. Considering Purchasing & Tenders
• Agree stable pricing 6 monthly for food (Frozen/Grocery). Longer for drinks.
• Core line very important but don’t forget low volume too.
(why pay more than necessary?).
• Like for like when doing comparisons e.g. pro rata & drained weights.
• Split case charges can be a hidden cost.
• Invoice spot checking. Internally or use external.
• Review Notification request at least 28 days.
• Don’t forget prices can go down as well as up.
9. Innovating With New Brands
• Keep close to brand owners and be informed/inform others
about market.
e.g. Funny Feet this year and Facebook.
• Utilising available POS
e.g. Swing boards can plant the seed.
Remember you have outside too.
• Help consumers to exercise choice and recognise products in a
crowded market place.
e.g. Fridge planograms to fit the site.
10. Maximising Upsell Opportunities
• Sourcing good impulse lines can add not detract from sales.
• Products purchased should compliment existing range.
• Staff training by suppliers in upsell opportunities.
• Supplier added value services can help e.g. menu layout.
• Product location and visibility. E.g. utilise planogram resources
• Utilising supplier promotions.
11. Forgotten Markets
• Waste Management
• Over 5 years RPG have saved the group bin purchasing ~£227,000.
• Non Food has no R.O.I.
• Goes in the bin, down the drain, down the toilet.
• Estimated 15-20% of every day purchases within play site.
• Utilities roll over if notice not given.
• Being aware of this can save on average 35%-40% on standard tariffs.
Editor's Notes
Not just using the supplier, go back to base. They will know be able to tell you new things that are coming to market before even listed by the supplier. Makes you:
Look pro-active.
Be able to be first to stock and launch.
Entice customers in to try something new.
Brand owners want to see there products as the ones sold. Therefore will often assist with a multitude of POS opportunities often FOC. If frightened that having names all over the server will conflict with your own branding then look for subtle inside and remember you have outside too to entice people in and sow the seed in the mind before they even enter the premises.
No doubt lots of choice for the customers to look at. From a service perspective you want to assist them as quickly as possible and from a profit maximising perspective you want to get things visible and in front of the customer wherever possible. Planograms are a great way to do this.
Often a worry that people wont buy a meal if you offer impulse snacks. My experience is this is not the case. Especially as play sites are destination venue. Come for food.
Make sure the products you buy are complimentary to your current offer e.g. quality coffee needs a premium cookie!
Supplier brochures and promotion leaflets are great for this. I used to pass through to the cook and get them to circle everything currently purchased and note them on the white board so all staff were aware. (Always check promo pricing against contract lines).
Premiumisation is a big thing at the moment. Being able to charge that little bit more for a premium product.
Suppliers will often offer training. Take advantage of the offering. It will often translate in to sales and repeat purchases.
Lots of other added value services too to look out for. Assistance in menu design, layout and print. Suggestions can also be got from supplier ref maximising margin on a menu e.g. extra toppings at X instead of clutter.
Supplier own promotions allow you to test new products to see if they deserve to be on the main menu. They also mean that you can maximise margins when putting a special on the board.