View Full Version : Chain Authorization

Energy G
05-31-2005, 04:36 PM
Does anyone know how to go about getting chain authorization? Does that simply entail sending samples out to buyers for various chains and seeing if they will allow the product? Or does this process involve paying for slotting fees? Should I expect distributors to split slotting fees, or is this something that I'm going to have to eat in the beginning? Any help with this question would be greatly appreciated.

Diet DP Drinker
06-01-2005, 02:06 PM
There are quite a few variables in your question. It appears you are going thru a distributor as opposed to shipping direct to the chain so I will go on that premise.

Sending out samples to the buyers will probably get you nowhere. A face to face presentation is the only way you will be taken seriously. The question on slotting will depend on the account, how you support the distributor and how his space is allocated in the account and how the account will merchandise the product.

If your product will be going into the distributors exisitng space, he may only have to make room. Of course this will mean adjustments in his mix and may cost a free fill or a shelf placement fee. If you are going in a dedicated section, you will more than likely be hit with a slotting fee, since you are going to be taking space from someone else. A lot depends on the chain and the demand for your product as to how they handle slotting. It is big money for them so I would expect to pay something.

If you are supporting the distributor with marketing funds and support funds, then it is not unreasonable to expect them to share the cost with you. If you're not, expect to pay the load.

Hope this helps.

Energy G
06-01-2005, 08:10 PM
Is it pretty much impossible to get slotting in a chain if you're not going through a local distributor? And when you mention distributors, are you refering to bigger players like Pepsico and Coke (obviously they would have the most clout)? Again, I'm assuming it all has to do with the chain.

Any recommendations on using brokers to get slotting?