Penetrating the Group Purchasing Organizations (GPOs)
Getting your products on to menus at corporate campuses, healthcare groups, or hotel chains to name a few, can offer a huge boost to your sales portfolio. As a whole, GPO’s compromise 20% of the Foodservice industry sales! GPO’s leverage their purchasing power by approving certain products (Spec) for all client locations to buy. Most GPO’s require their chefs/buyers make 80% of their purchases from approved products that they list on their Managed Order Guide or MOG.
Getting products on a MOG doesn’t guarantee all locations will use your products, but it does provide a huge advantage over non-approved items. Understanding the processes of selling to these organizations can be overwhelming as each has its own unique systems in place.
In general, the process begins with creating an awareness of your product, followed by understanding and/or building a need, which in turn brings about demand. It is this demand by chefs and buyers that will help force products into distribution and onto a GPO’s Managed Order Guide.
BayWest has invested countless hours to understanding the nuances and building relationships within many GPOs. Since inception, we have successfully placed items on MOGs for over a dozen manufacturers. Many of which went on to garner national distribution. Contact us today to find out how we can help your company enter the lucrative GPO market!