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Auto-Delivery Programs Peak Interest at S.F. '07 Fancy Food Show
San Francisco, CA - January 22, 2007 - The Moscone Center in San
Francisco was brimming with specialty food venders and buyers from around the world
January 21 - 23, 2007. Although much of the focus from the venders was to secure sales for
a large distribution channel there was definitely an increased focus on the opportunity
to sell products directly to consumers.
A Perfect Pear from Napa Valley has been a growing success story which has included contracts
with Costco, a repeating segment on The Food Network, distributors across the U.S. and Canada,
and more. Even with large distributors it is not possible to get our products out in every store
for every customer. Selling directly to consumers makes good business sense and providing a way
for customers to sample variety of products or receive their favorite products on a regular
basis makes for happy customers.
Specialty cheeses were represented from around the world. More and more these cheese can
be found being produced in the United States. Bellwether Farms is one such provider.
Cynthia Callahan (www.bellwethercheese.com) said
the demand for the artistry cheese
is growing. However she could see the value of creating a loyal community of customers with
an auto-delivery program and has been working on the opportunity for over a year.
The potential sales revenue from auto-delivery programs can be significant. Wineries are a
proven success story with over 75 percent of wineries reportedly having one or more wine clubs.
Selling directly to consumers provide the business with the maximum profit margin. Wineries
report up to a 60% profit margin with their clubs.
The success of auto-delivery programs can be seen on infomercials and television shopping
programs like QVC and Home Shopping Network. Specialty food items, cosmetics, pet care products,
collectable items are all candidates for such programs stated Theresa Dorr,
Active Club Management.
The opportunities are tremendous said Dorr. The revenue opportunity for business is enough
to keep many of them open for business. If a company can sign 500 customers up for an
auto-delivery program which ships six times per year at $ 45.00 per shipment, the annual
revenue generated is $ 135,000.00 per year.
Auto-delivery programs provide businesses with a high level of confidence in their projections.
They can use the projections to negotiate better prices for supplies and resource negotiations.
Programs increase brand loyalty as well as help to expand the market coverage.
The demands of growing and supporting a club are unique. Some people think that a website's
shopping cart can support a club. If you are looking to reach the industry averages of 18
month commitment and optimize efficiencies it's best to get a club solution stated Dorr.
We work with over 100 clubs and have learned how to maximize results. We share best
practices and hot topics at www.activeclubforum.com and continue to be astonished at
interest in club programs. We started in the wine industry and have added chocolates,
oils & dressings, BBQ sauces, jellies, cigars, and I even have been speaking with several
peanut butter companies. We are happy to hear the interest from the exhibitors at the
Fancy Food Show.
About Active Club Management:
Active Club Management offers an affordable and powerful solution for wine club management. Serving over 100
clubs in boutique operations and large, multi-locations organizations Active Club Management is customized to
the needs of each business. The solution works like a personal club assistant and is specifically built to offer
seamless integration with other accounting, POS, Inventory and shopping cart solutions. For more information,
visit www.activeclubmanagement.com
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