Presenting to Costco is different
Take a listen to my interview with NEXTY award winner Neutral Food execs on today’s Future of Agriculture podcast to learn how the brand is achieving carbon neutrality and how their dairy farmers benefit from the on-farm partnership.
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2-min read
Last week I talked about whether you are Costco ready. If you’re thinking of pitching Costco, go back and read that post first.
If you came back, here’s the next thing to know: your Costco buyer presentation will be different than any other retailer presentation. For one, Costco does not care about your IRI or Nielsen data — how well you are doing in the grocery channel does not translate to success at Costco.
Second, if you get a chance to present, you will get full buyer attention and time, but they might be late to the meeting. The buyer being late is part of the game. Don’t let it rattle you.
Once you understand what to expect and have worked out the economics, it’s time to focus on getting the pitch deck right:
Include an agenda slide (tell them what you’re gonna tell them)
Consumer insights -> understand their members
One slide showing your consumer target matches their member target
Source: Numerator
Category Insights
Show consumption is up, broad base appeal is up, show up, up, up trends
Supply Chain
Be transparent about where you manufacture, food safety, logistics, quality of ingredients, sustainability
Exclusivity
Show you can’t get this product / pack size / convenience anywhere
Specs & mock up photos of pallet, packaging
Do the cutting now
Pricing
Their cost
Member price
Comparisons to retail – equivalized – show margin difference
Competitive Offerings
Show how you stack up on value, nutrition, ingredients, claims, and anything that makes you stand out (make sure you are comparing to other club packs).
A final word on pricing: the buyer will ask you if this is your best price. My advice is give them your best price based on your all-in costs, and be able to defend it. Do not hold back dollars so that you can buy an end-cap as that will not be appreciated by the buyer.
Talk to Costco expert Jeremy Smith at Launchpad for advice and representation.
Good luck!
All my best,
Jennifer