Updated: Apr 26, 2020
Season 1 Episode 2 -
30 years and still learning - Having spent most of my career post leaving the Royal Navy working in consumer goods, primarily in the perishable food sector. I find it fascinating that I still learn every day, sometimes it’s a reminder of what I have forgot but for the most part, I learn something new every day… Today’s episode is about Terminology – The Survival Pack
Why do you need to know this?
We are going to cover off terminology frequently used in in the industry, this is not the complete list, nor is it in an particular order, remember we are all still learning, this will get you started and enable you to hold your own in a meeting, the list below will be expanded upon in later episodes.
What is everyone talking about?
Brand - The primary name given to a single or multiple item to be featured under, usually with a fixed price to enable investment and development of sales for increased brand awareness. Not necessarily the same as the company name.
Branded - A product that has higher margins to enable marketing investment.
Commodity - A volume product that doesn’t have a high-profile brand name, lesser margins, profitability is driven by selling volume and is usually dictated by market demand. Or a raw material of bulk product that is traded more on price than quality.
Co-Packer - A partner or provider of production or packing ability who helps you produce your product, convert your bulk item to customer friendly pack sizes or supports your business when additional capacity is needed.
LTL - Less than Truck Load
FTL - Full Truck Load
Refer - The unit that is on a container, trailer or truck to keep the items chilled or frozen.
Ambient - Products that do not need refrigeration or freezing.
Chilled - Usually perishable items with a date code and need to be kept in refrigeration
Chill Chain - The maintained supply chain which is refrigerated / temperature controlled.
Perishable - Items that have a code life and expire
Close out - Items that are not selling, excess or short on code
Distressed - Items running short of code life and need selling at a cheap price to move them
Customers - Usually people or companies, distributors or retailers who you sell to not the end user/consumer, the companies you do business with.
Consumers - The public, the destination of your products, via a retailer or restaurant, the curve ball these days with the e-commerce development is your consumers are also you customers, this takes on a whole different approach to doing business.
Artisanal - Usually referring to a traditional style of food production or product that has been handmade or made in smaller quantities.
Trade Marketing - Spend with customers, to gain or maintain a listing, feature in a newsletter, demo’s, promotional activity, etc.
Consumer Marketing - Aimed directly at the end consumer, investment geared to increasing trial and retention.
Run Rate - Regular sales volume when the product is not on promotion.
Velocity - The rate at which a product sells, on and off promotion
Hurdle Rate - A minimum volume number which a customer expects the product to sell through at.
Margin - The profit made between the cost of a product and the price it is sold at.
Mark Up - A % or $ figure added to the cost of an item to work out a selling price.
ROI - Return on Investment
POR - Profit on Return
TPR - Temporary Price Reduction
White Tag - The regular price for the product in store
FOB - Freight on Board
CIF - Cost Insurance & Freight
Pick Up - The cost of the product being picked up by a customer
Delivered - The cost of the product including delivery charges
A&P - Advertising & Promotions
BTL - Below the Line – Usually referring to targeted marketing investment with customers rather than but not exclusive of consumers.
ATL - Above the Line – Usually referring to wider consumer investment, TV, Radio, etc.
Features - The key attributes to your product and the differences compared to your competition.
Benefits - What the features deliver to your customer and the end consumer, the real reason to buy, these should be as glaringly obvious as possible throughout the customer chain from you to your customer to the end consumer.
Category - The space your product will sit in from a macro perspective, such as chilled, frozen or ambient.
Subcategory - Is a more defined sector of the category, using chilled as the Category, you could be in desserts, drinks, to-go, snacking, meal replacements.
C-Store - Convenience Store, garage forecourts, 7/11’s etc.
Feeders - Commissaries, Airlines, Schools, Colleges, Military, Cruise Lines, Correctional Facilities etc.
Converters - Usually companies that take your bulk product and resize the format from bulk to consumer sizes or where they add your item to others to make a finished product.
Commissaries - Organizations which take ingredients and products and turn them into finished meals for feeders or chain restaurants etc.
First Receiver - In a regular supply chain this is usually the distributor, however, either way it is the first point of sale for your business and product.
SRP - Suggested Retail Price
MRP - Manufacturers Recommend Price
SKU - Stock Kept Unit (an item)
DC - Distribution Center
Distribution - In terms of product distribution, meaning your items in more places.
Listing - When a customer agrees to stock and sell your item.
NPD - New Product Development
COG’s - Cost of Goods – the cost of producing the finished product.
COGS - Cost of Goods Sold – the COG plus the selling costs, people, commissions, trucking, etc.
LLC - Limited Liability Corporation
Inc. - Incorporated Corporation
CPA - Certified Public Accountant
USCIS - United States Citizenship and Immigration Services
SRP - Shelf Ready Packaging – Printed branded boxes/case that are used when displaying your products on shelf in store.
UPC - Universal Product Code
EAN - European Article Number
WIP - Work in Progress
H&B - Health and Beauty
EDLC - Every Day Low Cost
EDLP - Every Day Low Price
Net Net - No marketing money left in the product.
WIGIG - When its Gone Its Gone
BOGO - Buy One Get One
BOGOF - Buy One Get One Free
2 for - Buy 2 for a discounted price
Multi Buy - Buy several units of the same item to get a discounted price.
PLI - Product Liability Insurance
Freight Lanes - Trucking routes
Back Haul - A pick up or collection using the empty truck returning to its depot.
ROG - Receipt of Goods
And as the birthday song goes “and many moooorre!’
Now it’s all clear as mud, need more, please ask.
In our next episode, we will be talking about Establishing an Entity, thanks for reading and continuing your journey from Creator to Consumer.
Interested in reading or finding out more about selling your passion or our Creator to Consumer series please visit our Chatter page at www.beachcitysales.com/blog and click on Creator to Consumer or our general site at www.beachcitysales.com, for more direct interaction please e mail us at email@example.com
Remember, whatever you know “good luck keeping up”