Rob’s Rib Shots

Now, the challenge is identifying the right contacts within U.S. Foods to help position and distribute this product effectively in those large venues and events. You’re looking to leverage its demonstrated success and capitalize on its unique appeal in high-demand markets.

To prove your sales and build a strong case for scaling with U.S. Foods or other distributors, you’ll need to compile detailed financial and sales data. Here’s what you should gather:

1. Sales Data

• Revenue Reports: Show total revenue generated from the Grab ‘n Go BBQ product across different events.
• Units Sold: Provide exact numbers of units sold per event (e.g., Ohio State Fair, Kentucky Derby).
• Sales Trends: Demonstrate growth in sales over time or at specific venues to highlight demand.

2. Profit Margins

• Cost of Goods Sold (COGS): Break down costs per unit (e.g., ingredients, packaging, labor).
• Gross Profit Margins: Show profit per unit and overall margins for the product.
• Net Profit: Provide figures after all expenses (venue fees, transportation, marketing, etc.).

3. Event-Specific Performance

• Venue Sales Breakdowns: Highlight specific events or venues where the product performed exceptionally well.
• Comparative Data: If possible, compare your sales to other BBQ or food products at these events (demonstrating your product’s unique appeal).

4. Customer Insights

• Repeat Purchases: Data on customers or venues ordering the product repeatedly.
• Feedback and Reviews: Testimonials or satisfaction surveys from customers and event organizers.

5. Market Demand

• Demand Metrics: If available, show how quickly the product sold out or any unmet demand (e.g., requests for additional stock).
• Competitor Analysis: Brief comparisons to similar products to highlight your product’s advantages.

6. Operational Metrics

• Production Capacity: Information on how quickly you can fulfill large orders with the support of a supplier like U.S. Foods.
• Logistical Efficiency: Proof of how you handle transportation and delivery for large venues.

7. Projected Financials

• Scaling Potential: Forecasted sales figures for future events, assuming partnerships with large distributors like U.S. Foods.
• Cost Savings: Demonstrate how working with U.S. Foods (or similar suppliers) could lower production or distribution costs.

8. Partnership Benefits for U.S. Foods

• Sales Potential for Them: Estimate how much revenue U.S. Foods could generate by distributing your product.
• Strategic Fit: Explain how your product complements their current offerings and appeals to their client base.

Compiling this data into a professional document or presentation will demonstrate the product’s success, scalability, and benefit to U.S. Foods. Let me know if you’d like help organizing this information or creating a pitch deck!

To ensure you’re speaking to the right people at U.S. Foods, focus on the roles and departments most relevant to product sourcing, partnerships, and large-scale distribution. Here’s a guide to who you should approach:

1. Category Managers or Product Line Managers

• Role: These individuals are responsible for managing specific product categories (e.g., BBQ products, prepared foods). They oversee adding new products to U.S. Foods’ catalog.
• Why: They evaluate new product offerings, assess market demand, and negotiate supplier agreements.
• How to Find: Look for contacts in their “Prepared Foods” or “Specialty Products” divisions.

2. Corporate Procurement or Sourcing Managers

• Role: These professionals identify and onboard new suppliers and products.
• Why: They handle the logistics of integrating your product into U.S. Foods’ distribution network and assess supplier capabilities.
• How to Find: Reach out to U.S. Foods’ regional or corporate headquarters to inquire about procurement contacts.

3. Regional Sales Managers or Directors

• Role: These individuals oversee sales strategies for specific regions and work with suppliers to ensure products are promoted to U.S. Foods’ clients (e.g., event organizers, stadiums, or foodservice operators).
• Why: They can help connect you with large-scale buyers (like state fairs or sports venues) through their established client relationships.
• How to Find: Ask for contacts within U.S. Foods’ regional office for Ohio, Kentucky, or Georgia.

4. Large Venue or Event Specialists

• Role: U.S. Foods may have specialists focusing on high-volume venues like stadiums, fairs, and large-scale catering.
• Why: They can connect your product to events where it has already proven successful.
• How to Find: Request information about U.S. Foods’ dedicated accounts for large venue clients.

5. Marketing and Innovation Teams

• Role: These teams focus on innovative products with high growth potential.
• Why: If your product stands out as unique in the BBQ market, these teams can help prioritize its promotion.
• How to Find: Ask about teams managing “new product introductions” or marketing initiatives.

6. Customer Service or Supplier Relations

• Role: This is a great starting point for getting directed to the right department or person.
• Why: They can guide you to the most relevant contacts based on your specific needs.
• How to Find: Call the main U.S. Foods corporate line or use the supplier inquiry form on their website.

Steps to Reach the Right Person

1. Visit Their Website: Use the U.S. Foods Contact Page to locate regional contacts or submit an inquiry.
2. LinkedIn Search: Search for “Category Manager,” “Sourcing Manager,” or “Regional Sales Manager” at U.S. Foods on LinkedIn. Connect and send a polite, professional message explaining your interest.
3. Call or Email: Contact their corporate office directly and request to be connected with the relevant category manager or procurement team.
4. Attend Trade Shows or Events: U.S. Foods often participates in foodservice expos and conferences. Networking at these events can provide direct access to decision-makers.

Let me know if you’d like help drafting an email or LinkedIn message to initiate the conversation!

If you bring your product idea to U.S. Foods or you other supplier, and they decide to carry and distribute it, your payment will depend on the type of agreement you negotiate. Here are the common ways you could get paid:

1. Supplier Agreement (You Act as the Supplier)

• How It Works: You supply the product to U.S. Foods, and they distribute it to their customers.
• Payment Structure:
  • Wholesale Pricing: You sell the product to U.S. Foods at a pre-negotiated wholesale price.
  • Payment Terms: Payments are typically made on a Net-30, Net-60, or Net-90 basis (30-90 days after delivery).
• Key Considerations:
  • You’ll need to ensure production, packaging, and delivery meet U.S. Foods’ requirements.
  • Discuss volume commitments to lock in consistent sales.

2. Co-Packaging or Licensing Deal

• How It Works: You license your product idea, branding, or recipe to U.S. Foods, and they handle production and distribution.
• Payment Structure:
  • Royalty Payments: You earn a percentage of sales (e.g., 5-10%) based on the product’s revenue.
  • Upfront Fee: Some deals include an upfront payment for the rights to use your product.
• Key Considerations:
  • Ensure your intellectual property is protected via contracts.
  • You’ll earn less per unit but avoid the challenges of production and logistics.

3. Private Label Arrangement

• How It Works: U.S. Foods sells your product under their own brand name (e.g., “Chef’s Line” or “Metro Deli”).
• Payment Structure:
  • Similar to a supplier agreement, you sell the product at wholesale pricing.
  • They might require exclusive rights to the product.
• Key Considerations:
  • Negotiate terms for exclusivity, ensuring fair pricing and volume commitments.

4. Revenue Share Partnership

• How It Works: You partner with U.S. Foods to co-promote the product at major venues or events, sharing the revenue.
• Payment Structure:
  • Split revenue based on an agreed percentage (e.g., 60/40 or 70/30 in your favor, depending on your investment in production).
• Key Considerations:
  • This structure works best if you can contribute to marketing or operational aspects at key venues.

5. Commission-Based Referrals

• How It Works: If you don’t want to manage production or supply, you could act as a broker. You introduce the product to U.S. Foods and earn a commission on sales.
• Payment Structure:
  • Commission rates vary (typically 3-10%) and are based on product revenue.
  • Payments might be tied to ongoing sales or limited to the initial deal.
• Key Considerations:
  • Negotiate terms for ongoing commission if you continue to support the partnership.

6. Combination Agreement

• How It Works: Depending on U.S. Foods’ flexibility, you could combine elements of the above models. For instance:
  • License the recipe but stay involved in production.
  • Supply the product at wholesale while earning a small royalty.
• Key Considerations:
  • Ensure all terms are clearly defined to avoid conflicts.

Steps to Ensure Proper Payment

1. Negotiate a Contract: Work with a legal professional to draft an agreement covering payment terms, pricing, volume, and timelines.
2. Establish Invoicing Procedures: Define how and when invoices will be submitted and payments received.
3. Protect Intellectual Property: Ensure trademarks, recipes, and branding are protected before entering agreements.
4. Volume and Price Protections: Negotiate minimum order quantities and pricing escalators to protect against price fluctuations.

Would you like help drafting a specific payment model or guidance on negotiating terms?

Based on the components you’ve outlined for your product, here’s a structured approach to potential agreements with each supplier if you run the show.

Additional Recommendations:

• Integrated Supply Chain Management: Coordinate with all suppliers to ensure timely delivery and compatibility of all components.
• Quality Assurance: Implement regular quality checks across all products to maintain consistency.
• Brand Consistency: Ensure that all components, especially packaging, align with your brand’s image and messaging.
• Legal Protections: Secure agreements that protect your intellectual property, especially concerning custom recipes and branding.

By establishing clear agreements with each supplier and focusing on these key areas, you can create a cohesive and high-quality product offering.

Here’s a revised table that includes how you might get paid and estimates for industry-standard percentages or pricing where applicable. The figures below are approximations and could vary depending on your specific negotiations.

Additional Notes:

1. Payment Terms:

   • Wholesale Agreements: Payments typically range from Net-30 to Net-90 (30-90 days after invoicing). This will vary by supplier and order volume.
   • For the Printed Cups, payments could be made in full at the time of the order or based on milestones depending on your agreement with Visstun.

2. Margins:

   • Wholesale markup in food products generally ranges from 20% – 40%, though this could vary depending on production costs, packaging, and branding. Higher margins can be negotiated if you have a strong brand and demand.
   • Private Labeling can bring higher margins as you are marketing the product under your own brand. It’s common to earn more per unit with this structure but at higher initial costs (due to minimum order quantities).

3. Volume & Order Size:

   • Larger orders will generally yield better pricing or volume-based discounts. Make sure to negotiate for lower unit prices as you ramp up sales, especially with U.S. Foods and Visstun.

4. Marketing & Brand Protection:

   • For Stello Foods and U.S. Foods, it’s essential to ensure that the products meet your brand standards in taste and quality. You should also clarify the exclusivity of your product to maintain competitive advantage, especially at major events like state fairs and sporting events.

5. Profit Expectations:

   • When pricing your product, consider the overall cost of each component (sauce, meat, beans, cups) plus any operational and marketing costs. Typical industry margins for restaurant-quality products can vary from 30% – 50% depending on the complexity of the product and market demand.

If you were to approach U.S. Foods with the idea and allow them to manage the entire process—including sourcing from Stello Foods for the BBQ sauces and Visstun for the printed cups—you would likely structure the agreement as a licensing deal or a revenue share agreement. Here’s how the payments might work in such a scenario:

1. Licensing Agreement (Idea & Brand Licensing)

• How You Get Paid:
  • Royalty Fee: U.S. Foods would pay you a percentage of the sales revenue from the product you’ve created. Typically, royalty fees range from 3-10% of net sales, depending on the product’s success, exclusivity, and negotiation power.
  • Upfront Licensing Fee: You may also negotiate for an upfront payment from U.S. Foods as an initial licensing fee for your idea. This can range from $5,000 to $50,000 (or more) depending on the scale and perceived potential of the product.
• Key Considerations:
  • Ensure that the royalty percentage reflects the value you’re bringing with your idea.
  • You’ll want the agreement to clearly define exclusivity and territory (e.g., whether U.S. Foods has exclusive rights to distribute your product, and which regions they can sell in).
  • Negotiate for transparency in sales reporting to ensure you’re receiving accurate payments.
• Estimated Industry Percentages:
  • Royalty Fee: Typically 3-10% of sales, depending on product demand and scope of agreement.
  • Upfront Fee: Can range widely from $5,000 to $50,000 or more, based on the exclusivity and potential of the product.

2. Revenue Share Agreement (Joint Venture)

• How You Get Paid:

  • Revenue Share: Under a revenue share agreement, U.S. Foods would take care of the entire process (ordering from Stello Foods, Visstun, and managing distribution), and you would receive a percentage of the profits. Revenue share agreements can range from 20-50% depending on your contribution to the product and negotiation power.
  • No Upfront Payment: Unlike the licensing deal, a revenue share arrangement typically doesn’t involve an upfront fee but is based on the actual sales and profits.

• Key Considerations:

  • Since U.S. Foods would manage the entire process, including procurement and distribution, it’s important to define the cost breakdown and how profits are calculated.
  • Ensure that all costs, including production, marketing, and logistics, are clearly outlined so you receive your share of net profits after expenses.

• Estimated Industry Percentages:

  • Revenue Share: Typically, you’d receive 20-50% of net profits. The percentage may be higher if you retain some level of brand control or exclusivity in certain markets.

3. Payment Schedule and Reporting

• Payments in Both Scenarios:
  • Payments would likely be quarterly or annually in both cases, with U.S. Foods providing sales reports detailing the revenue, costs, and your payment calculations.
  • In a licensing deal, you would receive a royalty check based on the percentage of sales (e.g., 3-10% of net sales).
  • In a revenue share agreement, payments would be based on a percentage of net profits (after costs like ingredients, production, packaging, and distribution are subtracted).

4. Additional Negotiation Points:

• Exclusivity: If U.S. Foods is granted exclusive rights to your product, you might ask for a higher royalty or revenue share percentage.
• Marketing Support: Make sure the deal includes a provision for marketing support (advertising, events, etc.), as this will directly impact your product’s visibility and sales.
• Performance Milestones: You could also negotiate performance milestones (e.g., if U.S. Foods doesn’t meet a certain sales threshold, the agreement can be reevaluated or terminated).

Example Scenario:

Let’s say U.S. Foods sells the product for $10 per unit and sells 100,000 units in a year:

• Total Sales = $10 x 100,000 = $1,000,000 in total revenue.
• Royalty Agreement: If you have a 5% royalty, you would earn:
  • Royalty Payment = 5% x $1,000,000 = $50,000 for the year.
• Revenue Share Agreement: If you agreed to a 30% revenue share and the net profit after all costs (ingredients, distribution, packaging) was $200,000:
  • Your Share = 30% x $200,000 = $60,000 for the year.

In both cases, you would receive quarterly payments based on sales and profit reports from U.S. Foods, and the payment terms (Net-30, Net-60, etc.) would dictate when you get paid.

Final Thought:

This type of deal can be very profitable if U.S. Foods believes in the strength of your idea and brand. A royalty agreement could provide a steady income stream, while a revenue share may offer higher earnings depending on the product’s profitability. Be sure to negotiate a deal that reflects the work and value you’re bringing to the table while leaving room for future growth and scaling.