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 consignment to supermarket

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TSgeorgelimsk
post Nov 22 2010, 11:57 AM, updated 16y ago

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dear all,

anyone has experienced dealing with supermarket like cold storage/ jusco/ giant as consignee? i am planning to consign in sweets from europe to sell here...i am planning to start with only 1 outlet first with small quantities. btw i have relative in germany who will get the me the supplies...so far no idea how to import them in as well..
RDPD
post Nov 22 2010, 12:00 PM

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QUOTE(georgelimsk @ Nov 22 2010, 11:57 AM)
dear all,

anyone has experienced dealing with supermarket like cold storage/ jusco/ giant as consignee? i am planning to consign in sweets from europe to sell here...i am planning to start with only 1 outlet first with small quantities. btw i have relative in germany who will get the me the supplies...so far no idea how to import them in as well..
*
mm, never done consignment with supermarket before..
But, do expect few months credit from supermarket..usually is 3 months minimum.
Good luck! smile.gif
TSgeorgelimsk
post Nov 22 2010, 12:05 PM

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few months im ok with it...since its only few hundreds only...just additional passive income
SUSMonsterjin
post Nov 22 2010, 12:09 PM

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you have to open a trading account with them, and you will need to play according to their rules, if they want for all outlet, you will need to provide for all outlet, if they want it in 2 weeks, you must provide in 2 weeks. Jusco will ask for 45 days, giant is 90 days, tesco (I forgot).

Consignment in a way is asking for a headache, if they knot sell, they will ask you to take it back, if it does not involve their capital, they will not push
TSgeorgelimsk
post Nov 22 2010, 12:27 PM

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is it possible to open a akaun with a branch instead with their hq? i mean branch manager kenot make decision at all?
DarkNite
post Nov 22 2010, 01:58 PM

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QUOTE(Monsterjin @ Nov 22 2010, 12:09 PM)
you have to open a trading account with them, and you will need to play according to their rules, if they want for all outlet, you will need to provide for all outlet, if they want it in 2 weeks, you must provide in 2 weeks. Jusco will ask for 45 days, giant is 90 days, tesco (I forgot).
Consignment in a way is asking for a headache, if they knot sell, they will ask you to take it back, if it does not involve their capital, they will not push
*
On top of that you bear losses thru pilferage and damages. You pay for listing about a few ten thousand ringgit. You pay for shelf space. You pay for merchandising and promotions. Basically you pay for everything!

Yup, Branch manager kenot make decision at all!!!!

Forget about Tesco, very very unprofessional (corrupt) and bad pay master!
TSgeorgelimsk
post Nov 22 2010, 02:05 PM

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u experienced dealing with which one? merchandising? sweets also need? can i give get a place to put the sweets and let it sell by itself?
DarkNite
post Nov 22 2010, 02:27 PM

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QUOTE(georgelimsk @ Nov 22 2010, 02:05 PM)
u experienced dealing with which one? merchandising? sweets also need? can i give get a place to put the sweets and let it sell by itself?
*

I have dealt with Jusco, Carrefour, Giant and Tesco.
You have to pay for shelf space - a place to put the sweets and let it sell by itself.
But when your stock arrives at the outlet who is going to open the box, tag the variety and quantity, and arrange the sweets on the shelf?

BTW These sweets are in packet or loose?
TSgeorgelimsk
post Nov 22 2010, 02:43 PM

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that is y i plan to consign 1 outlet near my home @ penang...packed sweets...how much is the shelf? r u still dealing with them? wat item do u supply to them?
wodenus
post Nov 22 2010, 04:33 PM

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QUOTE(georgelimsk @ Nov 22 2010, 02:43 PM)
that is y i plan to consign 1 outlet near my home @ penang...packed sweets...how much is the shelf? r u still dealing with them? wat item do u supply to them?
*
You still don't understand... if they accept you (and that's a big if) you are their b****. You can't say you plan to consign to one outlet in Penang, they will tell you where, and when, and how much.

TSgeorgelimsk
post Nov 22 2010, 04:40 PM

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hm..then it will be very difficult...since i don have such capital to kick off...moreover im all alone...mind share ur experience dealing with them wodenus?
gs20
post Nov 22 2010, 07:42 PM

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Better don't do consignment.
They cannot sell, they return.
I'm ok with my projector being returned as I can keep in my store. What happen if they return your sweets?

If you wanna try the market with small quantities, I suggest you rent a space in the mall instead of doing consignment.
gapnap
post Nov 22 2010, 08:08 PM

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Let them choose ...

Draw a package
- lesser discount if consignment , the longer the credit term the lesser the discount
- more discount if wholesale . the more quantity they purchase , the more discount

Careful though , if your product is really good . what is stopping them from taking direct from Germany ?
You better score a sole distributorship in M'sia .
TSgeorgelimsk
post Nov 23 2010, 09:24 AM

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gs20...i am still having a full time job..if i open a booth...i hire ppl...all profit lost....if i work myself...could b worst...

gapnap...the sweets are supplied by a importer here...but very limited choices and only can be found @ 1 place in penang...which is in cold storage island plaza..it will not sell well...just certain ppl might like the taste...
edyek
post Nov 23 2010, 09:35 AM

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Terrible way of doing business.

You cannot control your marketing. You cannot control your location. You need to pay for everything. And worst of all, if your products don't sell, you have a loss.
Vengeance_Mad
post Nov 23 2010, 10:12 AM

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From what I've garner through these posts, it sounds risky.
But yeah, my company is doing consignment to Tesco and they will ask you to take ur products back if it failed to sell in a period of time.
And yes, they do have a "play my game by my rule" kinda stuff.
So beware.
TSgeorgelimsk
post Nov 23 2010, 10:20 AM

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actually my hope is tat they might allow me to consign 1 outlet of my choice....since i cant afford having a booth...or anyplace far away from my home...

btw i know supermarket only do consignment to newcomer but i didnt know that they will also choose the place for the consignment.
Vengeance_Mad
post Nov 23 2010, 05:55 PM

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QUOTE(georgelimsk @ Nov 23 2010, 10:20 AM)
actually my hope is tat they might allow me to consign 1 outlet of my choice....since i cant afford having a booth...or anyplace far away from my home...

btw i know supermarket only do consignment to newcomer but i didnt know that they will also choose the place for the consignment.
*
U can try but I think , very slim chance.
soitsuagain
post Nov 23 2010, 09:15 PM

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Better to rent a stall within Carrefour. It is only RM200/day depending on location but it is easier to negotiate vs getting shelf space. Either way, you will need a promoter to allow testing or tagging etc.
TSgeorgelimsk
post Nov 24 2010, 09:32 AM

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so its u again. i cant afford renting a kiosk. worst is i need to hire promoter...best is consignment to supermaket...if kenot sell, i just lose the cost for the sweets...

200/day...1 month rm6k...can rent a shop do smthg else....btw the sweets will not sell well la...

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