Rule of the Road #6: My Buyer Hates Me…Barf!
Having led a couple of different consumer packaged goods (CPG) sales teams and provided counsel to numerous others- I have heard this line way too many times and it always makes me want to barf into my keyboard. Odds are extremely high that the buyer at your retailer does not hate you- but they may very well think you add extraordinarily little value or don’t understand what they need to be successful. You also need to understand that your buyer will not be removed because you have a tough time with them- they are in charge of the category you work in. Let’s dig in here and figure this out.
First off- the vast majority of buyers I have come in contact with over the course of my career have been smart, hard-working folks that are doing the best they can to deliver their numbers and be an asset to their company. They want to get raises, make bonuses, get promoted, and provide for their families- just like you do. They are also under pressure to deliver results- just like you are. But the tension can arise if you as a supplier don’t understand what the buyer needs from you and you are showing zero flexibility in terms of problem solving versus going into your meeting with a rigid set of expectations and likely only one “acceptable” (to you) outcome: ‘I got everything I asked for’. It rarely works this way…and you already know this.
I see many salespeople get off to a poor start with a buyer if they do not understand what that buyer needs to be successful. Ask how they are evaluated (hint- this will tie to how they are compensated- and that is very important to them) and see if your brands can help them achieve these goals. Often a buyer is evaluated on a combination of sales targets, margin goals, securing trade spend targets from their suppliers, a category share goal versus a key competitor, first to market on major launches, private label goals, inventory management, and then likely some internal matters such as a personal development plan or participation in internal pilot programs. If you don’t know the answer to ‘how is my buyer evaluated’- ask! Or ask your broker or sales agent who works with this retailer multiple times a day. If they are good- they know.
Buyers can also be under pressure to get a certain number of their category brands into key programs important to the retailer. There are always new promotional programs the innovative retailers are testing. Here is an example: lately, the big push has been to get brands on to the retailer’s proprietary retailer media network (RMN). Retailers got tired of watching Amazon make a lot of money (and at a high margin) from their advertising programs- so they have all launched their own RMNs (to varying degrees of success). Knowing this, proactively figure out how you can test with your retailer’s RMN and then track it closely. If the test performs- do more. If it doesn’t- bring forward the numbers and say, ‘can’t do that again the exact same way, but what changes could we make in order to make another test viable for my brand?’ Now you are problem solving while acknowledging that the buyer is likely under pressure to drive revenues on their RMN. This is just one example to prove you understand what they are trying to achieve.
Some other reasons you may feel your buyer is not thrilled with you could be:
Brand Performance: Is your brand meeting the retailer’s category sales hurdle? Is it helping to drive category performance? Is it doing better than the brand/skus it replaced? Remember- a buyer cares way more about their category performance than your brand performance.
Scorecard: How is your scorecard looking? Are your orders shipped on time and in full? Do you often have paperwork challenges? How about damages? Do your promotions execute as planned?
Meeting Preparation & Execution: When you meet with your buyer (in person or over Zoom/Teams)- are you well organized? Have you sent a reminder and an agenda a couple of days before the meeting? Are you bringing six (6) people to your meeting that the buyer is not expecting? Is your deck 80 pages long (good luck in a 45-60 minute meeting)? Are you planning to lecture the buyer the entire time or do you want a discussion of the business and to engage in ideas to drive brand/category sales? After many meetings with buyers and interviews with buyers on our Road 2 Retail podcast – the ideal presentation length is 12-15 pages! They are looking for a conversation about your business. Have a 60-page appendix with market research or comparison studies as support if needed- but not in the core deck.
Remember- to you this meeting is massive! You may only get 1-2 a year. But to your buyer- you are meeting number 6 of the day. How can you stand out? Be interesting, be highly organized, seek the buyer’s opinion, focus on your mutual end consumer and driving category sales. Tell them something they could not possibly know.
Your Reputation: How are you regarded inside this retailer and with your buyer? Are you known to be organized, on time, sensitive to the needs of the buyer, do you address problems head on or do you hope the buyer won’t ask (spoiler alert- they will), and critically, how is your follow up? We hear complaints from buyers all the time that poor or slow follow-up is one of their greatest frustrations with suppliers. A tip here is to summarize the key points of your meeting and specific follow ups to your buyer within 24 hours- it shows you are on the ball. Include dates when follow-up tasks will be completed. Then hit your dates. And if you are having execution issues with your retailer- address them first and provide dates and details: what happened, why, when it will be fixed, why it won’t happen again. Our buyer interviews and our experience are quite clear: buyers want to discuss challenges FIRST- not in the last 30 seconds of a meeting.
Retailers Watch Each Other: It is fine to do special packs, unique skus, proprietary promotions with a retailer- but just understand that other retailers are watching. If you are a very small brand with limited distribution- you may have a better chance to execute this without blow back. But if you are growing, getting traction, and have some buzz in the market- doing something special for one retailer could result in a frosty call from another asking why they did not have this opportunity offered to them? We have been involved with this situation many times. A few answers could be:
- We offered this to you and you passed- so remind them.
- We are open to discussing a special promotion with you in the future- when can we meet and discuss details?
- This retailer really stepped up and helped create this promotion and removed some of our risk. We would love to come to discuss how a similar structure could be put together with you.
It is fine to build your business with a retailer by doing something unique. Just be prepared for the inbound call you will could get.
Are You Empowered? Does your own company trust and empower you to make decisions on the spot with your retailer (within reason of course) or do you have to check with the mothership about everything? It is highly frustrating to a buyer if their account manager has zero flexibility to make adjustments and problem solve quickly. If you do not feel you have enough decision-making authority within your company- this needs to be addressed with your manager. This is not a buyer problem.
Are You Available? Many salespeople complain that their buyer “never gets back to me.” Well- they ARE busy. We also hear from buyers that their suppliers can be “slow to get back to me when there is an issue.” You are busy too. But a way to differentiate yourself from other suppliers is to be super responsive- especially early in the relationship with your buyer. Let them know you can be trusted to manage problems. From experience- if you handle problems well, you will begin to get the calls when opportunities arise within an account.
A final point here- our interviews with retailers were very clear on this matter: they do not like “needy” suppliers. So don’t call and email over every little thing- they are not looking for pen pals. Build your reputation such that when you call- they know it must be urgent. And try not to call only when there are problems- if you are doing a special pack (example) and can include your account- call them and ask if they want ‘in.’ You will score points for bringing the opportunity forward.
Over the years I have dealt with many buyers at many retailers. As previously mentioned, the vast majority have been smart, hard-working people. The initial litmus test in your buyer’s mind will always be: ‘can I trust you to do what you say you are going to do on time and with minimal drama?’ As you build this credibility- opportunities will open up with your buyer. I would like to think I became friendly over time with many of my buyers, but friendship is a dividend of the business relationship- it can’t be the foundation.
So, in conclusion, I highly doubt your buyer hates you. But if you are struggling with your buyer, reflect on the above and see what you can start doing better or differently. Understanding what is important to your buyer is a great place to start (re)building a positive working relationship.
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