06: Sales
Getting Started with Sales
Sales is the lifeblood of your business. You could have the best product in the world, but if it’s not selling, you’re sunk. When it comes to getting your product into the hands of customers, there’s no one-size-fits-all approach. The key is understanding the various sales channels and figuring out which one is going to work best for your brand—before you start throwing spaghetti at the wall.
What is a Sales Channel?
A sales channel is basically the road your product takes from production to purchase. It’s the path that gets your goodies from your kitchen (or factory) into the hands of customers. Examples include: grocery, e-commerce, foodservice. But here’s the kicker: Not all sales channels are created equal. Each one has its quirks, advantages, and challenges. You’ve got to know what you’re dealing with, or you’ll end up spreading yourself too thin and achieving a whole lot of nothing.
Which Sales Channel Should You Start With?
Before you start daydreaming about your product sitting pretty on every shelf from Whole Foods to the corner bodega, pump the brakes. The smartest move is to start with one channel and really nail it before you expand. Why? Because each channel is its own beast. What works for online sales might flop in a brick-and-mortar store. You’ve got to master the art of one channel before you take on another—unless you enjoy the feeling of being overwhelmed and underprepared.
Let me hit you with a real-world example. When I launched TeaSquares, we started with e-commerce. It made sense for us at the time—low overhead, direct-to-consumer, all that jazz. But then, just six months in, we got the chance to launch in Whole Foods Market. Naturally, we jumped at it. But guess what? Our e-commerce efforts stalled. Why? Because we had to shift all our attention to the Whole Foods launch, and we simply didn’t have the bandwidth to do both well at the same time.
Later, when we decided to go live on Amazon.com, I knew I couldn’t make the same mistake. I gave myself three months to fully understand the platform and make it our growth priority. That focus paid off. We optimized our presence on Amazon, learned the ins and outs, and made the most out of the opportunity. The takeaway? Don’t spread yourself too thin. Master one channel, and then move on to the next.
Sales Channels
Alright, now that we’ve covered the basics, let’s break down some of the most common sales channels for food and beverage brands. Each has its own vibe, advantages, and challenges, so listen up.
1. Farmer’s Markets
Advantages:
- Face-to-Face Feedback: There’s no better place to get direct feedback from your customers. You get to chat with people, see their reactions, and tweak your pitch on the fly.
- Local Love: If your product is locally sourced or small-batch, farmer’s markets are your playground. People love that artisanal, fresh vibe.
- Easy Entry: No red tape, no corporate hoops to jump through—just sign up, show up, and start selling.
Challenges:
- Limited Reach: Unless you plan on cloning yourself and setting up booths nationwide, your customer base is going to be pretty local.
- Seasonal Slump: Many farmer’s markets are seasonal, so if you’re banking on year-round sales, think again.
02. E-commerce:
Advantages:
- Global Reach: The world is your oyster with e-commerce. You’re not limited by geography, and your shop is open 24/7.
- Low Overhead: Forget rent and utilities. E-commerce lets you run lean.
- Scalable: As your brand grows, your online store can easily grow with it.
Challenges:
- Cutthroat Competition: The online space is crowded, and standing out can be tough.
- Logistics Headaches: Shipping, returns, customer service—it can all get pretty complicated and expensive.
- Trust Issues: Consumers are cautious online, especially with new brands. You’ll need to build trust fast.
3. Amazon.com
Advantages:
- Massive Audience: Amazon’s customer base is unparalleled. If you want eyeballs on your product, this is the place.
- Built-In Trust: People trust Amazon. That trust can spill over to your brand if you play your cards right.
- FBA Perks: Fulfillment by Amazon (FBA) handles the heavy lifting—storage, shipping, customer service—so you can focus on growing your brand.
Challenges:
- Fees, Fees, Fees: Amazon takes a cut of everything, from referrals to storage. Your margins will take a hit.
- Intense Competition: With so many products jostling for attention, you’ve got to bring your A-game.
- Brand Identity Crisis: On Amazon, your brand can easily get lost in the sea of products. Customers might just see it as an Amazon purchase rather than a unique brand experience.
4. National and Regional Grocery
Advantages:
- High Volume: Grocery stores can move serious product. If you’re ready to scale, this is the channel to consider.
- Brand Credibility: Seeing your product on the shelves of a major grocery chain does wonders for your brand’s reputation.
- Repeat Business: Groceries are repeat-buy environments, meaning steady sales if you can keep customers coming back.
Challenges:
- Tough to Crack: Getting on grocery shelves isn’t easy. It takes time, money, and a lot of networking.
- Pressure on Margins: Grocery stores want their cut, and they’ll squeeze you for it. Be ready for tight margins.
- Crowded Aisles: Competing for shelf space is no joke. You’ll need a killer product and savvy marketing to stand out.
5. Independent Retailers
Advantages:
- Niche Markets: Independent retailers often cater to specific audiences. If your product fits a niche, this can be a goldmine.
- More Flexibility: Smaller retailers are more likely to work with you on pricing, promotions, and product placement.
- Stronger Relationships: You can build real connections with store owners, which can lead to better opportunities down the line.
Challenges:
- Limited Reach: These stores won’t have the same foot traffic as larger chains, so your sales potential is capped.
- Unpredictable Sales: With less predictable foot traffic, your sales can fluctuate, making it harder to forecast inventory needs.
6. Foodservice
Advantages:
- Bulk Orders: Foodservice clients buy in large quantities, which can quickly boost your sales.
- Brand Exposure: Getting your product in restaurants or cafeterias can introduce it to new customers who might seek it out later.
- Consistency: Regular orders from foodservice clients mean predictable revenue streams.
Challenges:
- Tighter Margins: The foodservice industry is price-sensitive, so you’ll need to be competitive to win and keep contracts.
- Quality Control: Consistency is key, and foodservice clients will expect it. Any slip-ups could mean losing valuable contracts.
Start Small, Then Scale
Here’s the bottom line: Don’t try to tackle every sales channel at once. Pick one, master it, and then move on to the next. Each channel operates differently, and each requires different resources. Jumping into multiple channels too soon can stretch you thin and leave you scrambling. Trust me, I’ve been there.
Take a page from my TeaSquares playbook. We launched with e-commerce and focused on that until we got an opportunity with Whole Foods. That pivot required all our attention and slowed our e-commerce momentum. When we expanded to Amazon, I took my time to learn the platform inside and out before diving in. That focus made all the difference.
So, start small. Pick one channel that aligns with your product and customer base, get really good at it, and then consider expanding. It’s not a race—it’s about building a sustainable, scalable business.
In the next chapters, we’ll dive deeper into each of these sales channels, giving you the tools you need to make the right decisions for your brand. Whether you’re slinging your product at a farmer’s market, selling online, or eyeing the grocery aisles, the key to success is mastering one thing at a time.