Stagnito Media Convenienece Store News Convenienece Store News Single Store Owner Progressive Grocer The Gourmet Retailer Progressive Grocer Store Brands Retail Leader hispanic
 
Look Beyond Price for the Best Value
PrintLook Beyond Price for the Best Value  

By Jon B. Rogers

With the United States still weathering one of its worst economic downturns, buyers have a powerful incentive to zero in on price as the primary factor in selecting a supplier for a store brand item. But with any product — whether it's coffee or cleaning supplies — the best price might not mean the best deal for the retailer or the consumer.

An increasing number of shoppers are demanding that store brands also be of high quality and produced in a socially and environmentally responsible manner. That reality means retailers need to ask the right questions of potential suppliers so they are able to choose supplier-partners that are able to deliver on consumer expectations.

New worker housing at Finca Hamburgo in Mexico is one of many projects Rogers Family Co. completed in 2010 through its Community Aid program.

Assess eco-commitment
Ask a potential supplier such questions as, "What are you doing to reduce your carbon footprint?" "Are you committed to reducing packaging or producing recyclable or biodegradable packaging?" "What are you doing preserve trees, plants and wildlife in local communities — or those miles away?"

Even if one does not agree that there is any moral imperative to use an environmentally responsible supplier, there are practical and economic considerations for retailers. A host of websites and organizations now provide easily-accessible social, environment and health ratings for consumer products. And saving natural resources, of course, is good for any company's bottom line.

Understand local conditions
Media reports rightly shined a spotlight on these appalling conditions, and some organizations vowed to improve the quality of life. Now there is greater — and deserved — scrutiny of conditions at coffee farms and other production facilities worldwide. Conditions on some of the farms have improved.

Ensure that your supplier also is committed to permanently improving quality of life for workers and that such workers are fairly treated.

Establish long-term relationships
The value of using a supplier that has established long-term, face-to-face relationships with all of the facilities or ancillary businesses necessary to provide that product can't be overstated. Today, some refer to this practice as "direct trade" — cutting out the costly middle men.

Ask the supplier to explain how it plans to be in business five or 10 years from now. In addition, find out if you will have round-the-clock access to your supplier's top executives. And check to see what resources it has in place to correct deficiencies in the workplace or supply chain.

Ask about support
True, the supplier that offers the lowest price isn't necessarily offering the lowest quality. But by asking these and other questions, you can learn if the supplier with the best price also offers the best value for your company and the consumer.

Jon B. Rogers is the founder and president of The Rogers Family Co. (www.rogersfamilyco.com), a Lincoln, Calif.-based provider of national brand and store brand coffee that is dedicated to socially and environmentally responsible farming and production practices. E-mail him at jbrogers@rogersfamilyco.com.




New Product Spotlight


Coffee-Based Weight Loss Supplements
Private Label Nutraceuticals introduced three pure green coffee bean extract formulations for retailers’ store brand programs.
Featured Videos

Loading...
Playlist

View more


Related Videos
Professional Network



Stagnito Media
570 Lake Cook Rd, Suite 310
Deerfield IL 60015
Ph: 224-632-8200
Fax: 224-632-8266

Privacy Policy
Print / Electronic Media
Convenience Store News
CSNews for the Single Store Owner
Progressive Grocer
Progressive Grocer's Store Brands
The Gourmet Retailer
Retail Leader
Marketing Guidebook
Directory of Convenience Stores
Events
Hispanic Retail 360

Custom Media