Sign Up
Log In

Tradavo Advice

What's the Frequency, Kenneth?

Posted by Bobby Martyna

Sun, Oct 24, 2010 @ 07:10 AM

Many people may remember the 1994 Billboard Modern Rock Tracks number one song by REM. The song itself was taken fromREM a strange encounter between Dan Rather and a slightly off-kilter duo who kept pressing him with that inscrutable and now memorialized question.

By contrast, in running a small format retail business, such as a hotel pantry, independent pharmacy, gift shop, campground/RV park or hardware store, the question is a real one:  "What's the right frequency to be ordering wholesale consumables or impulse products for my guests and customers?"

For those retailers that are buying from the local Club Store, the question is particularly important.  If it takes two hours to get to the store and purchase your wholesale products, it's unlikely and unreasonable to go or send someone to the store more than once a week, or even once a month.  The trip to the Club Store incentivizes large and infrequent purchases.

The problem is that in between trips, you will more than likely be out of stock on some best selling items.  That's because it's very hard to anticipate exactly what will be purchased and in what quantities.

An out of retail out of stockstock situation is vexing for the retailer and frustrating for the customer, as mentioned in previous posts.

The answer that many small format retailers are discovering is that ordering frequently, and in smaller quantities, is the best path to profitability.

With the Tradavo Wholesale Club program, minimums are low and deliveries can be scheduled on-demand, saving time and reducing out of stock situations.

The answer to the question, then, is -- as frequently as required.  Don't subject your sales and profitability to how often you can make it to the Club Store, or to how often the local delivery truck rolls around (or doesn't)!

Bobby Martyna
President and CEO
Tradavo, Inc
bmartyna@tradavo.com
@bmartyna

Topics: wholesale snack distributor, Bobby Martyna, Tradavo CEO, wholesale products, club store