Creating a Sales Sheet to Present to Convenience Store Chains and C-Store Distributors
Many of us have come up with ideas for great products we’ve wanted to sell, but most of us don’t get any farther than that. It takes a lot of planning and a lot of hard work to get your product from idea to reality. Opportunities can come at any time, so it’s best to be as prepared as possible so you never miss one. There are a few things you can do to ensure that you have an easier time going through the process of moving your product from simple idea to something that will occupy a shelf.
One thing that will definitely help you is Creating a Sales Sheet for Convenience Store Distributors that details everything there is to know about your product so that you can successfully market your ideas to a manufacturer, a distributor, and finally a convenience store looking to add your product to their shelves. When creating your spreadsheet, there are some important things you should include in order to show that your product is fully fleshed out and something that is not only realistic but that you’re also serious about.
1. Product Description – It’s in your best interest to describe your product thoroughly, but also keep it brief and short enough for someone to read. It’s important to include the most valuable information, especially what would be important to a distributor. Using bullet points is the best way to accomplish this because they’re easy to see and the broken text spaces are more appealing to the eye. Many of us want to use this space to really flesh out our product and show how skilled and knowledgeable we are as inventors and innovators. Putting too much information may make your proposal less appealing, so try to stick to the basics for now.
2. Why is your product unique? It’s extremely crucial that you include all the reasons that your product is one of kind. If it seems that your product can easily be replaced by another easier, or cheaper version, it will lack the demand needed to keep sales going and eventually, lead to it coming off the shelves. If a distributor thinks that sales won’t be what they crave, you won’t get farther than an idea. Half of the battle of becoming successful is securing a support from distributors, and being a favorable product in the convenience store. This is the only way you will be a popular find across the nation.
3. Packaging – You need to carefully think of the logistics of how your product will be packaged. This will determine a great deal of the appeal of your product, as well as how it will keep on the shelf, and how much it will cost. When packaging is elaborate, it’s sometimes a deterrent to shoppers, and if it’s too bulky, it might take up more shelf space than it’s worth. Make sure to think carefully about this part to make sure it’s realistic, useful, and appealing.
The best way to approach this step is to come up with a prototype, or a sketch of what it will look like, and what materials it will be made from. If you have a logo, it would be in your best interest to include that on the product as well. Finding some books on the science of color will help to ease some of the stress of designing the packaging. Make sure to put yourself in your target audience’s shoes—what would catch your eye the most? What would be the most appealing? Aim for that and you will definitely hit success.
4. Images – It’s a great idea to include a lot of images, even if these are created before the product is a reality. Make sure the photos are detailed, clear, and that there are enough for the viewer to really get an idea of the size of the product. If the product comes in pieces, show those as well. It’s always better to have at least a prototype to take photos of—these will be significantly more appealing than sketches of a potential product. If the product is something that is worn, or used in a specific way, it’s also okay to feature models or people posed in positions that describe and emphasize the product’s usefulness.
5. UPC – UPC stands for Universal Product Code and is used for tracking items in stores. Like a ISBN, which is a unique number at the back of books and other media, every item sold in the stores has a specific number associated with it. Even different editions of the same novel will have different ISBNs. Likewise, no two items have the same number. This is so that people can identify your product very easily. Including this code is extremely important—don’t forget it! Without including it, there’s really no way for people to safely and securely identify your exact object. This should be easy for them to see and understand—avoid any confusion here.
6. Special details – What else can you say about your product that will make it more appealing? Is it designed to be sold in bundles for a more appealing price? Does it come in a set? These are things that could make it a more desirable product in the marketplace, thus making what you’re trying to sell more appealing. Don’t bother to bog it down with potential scenarios for your product—stick to the facts and keep it simple. The easier it is for others to understand what your idea is, the better it will be to sell it to others.
Remember that these distributors and convenience stores are reading a massive amount of these proposals and so keeping it short, but informative is key to being noticed. If your product is unique and something that people will want to buy, it’s important that you both explain this thoroughly, and completely, but also thoughtfully and simply. If your descriptions are too long, more than likely you’ll be skipped.
Finally, remember to check your work and your writing. Others will judge you by what you product looks like on paper, and there’s nothing worse than having someone think you’re less than capable just because you had mistakes in your grammar and syntax. Have someone look over your spreadsheet and edit any unnoticed mistakes before attempting to share it with the people you are trying to impress.
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Distributing Products Through Convenience Store Distributors
Product distribution is a key component in the marketing cycle with others being production, product pricing, and product promotion. Distribution involves the movement of products from the producer or manufacturer until it reaches the end users. During the distribution chain, as the product leaves the manufacturing location, it goes to a wholesaler or distributor who then distributes it to a retailer. The retailer finally takes it to the end user at their location which has foot traffic. The retailer has identified themselves as being a convenience store, grocery store, big box store, and or a specialty market store. The convenience store is the focus for this article but most of the same logic applies.
When focusing on the C Store trade, you have to first identify that your product and brand goes with the logic of the store. If you were in a rush and grabbing gas or a quick snack, then would you purchase your product at that time is the logic we are talking about. Candy, Tobacco, Drinks, and other fast need items are the staples of the convenience store industry. Another key trait is can your product be a traffic draw or is it dependent on the foot traffic. Lottery tickets are a traffic draw for example. Not many items fit into that category as they are normally staple brands and have a mass following.
Distributors and wholesalers are only the middle men in the transactions. Your first call should be selling your product to distributors, which you can find on our home page. Once you are off that first call you will understand why we came up with Check Stand Program. The key for the distributor is that your product moves, in other words, it does them no good to purchase the product unless they can sell it multiple times and not worry about having it spoil or not sell. The logic starts with the stores themselves. They have so much money wrapped up in their square footage that they have to have a profit per square foot inside. There is an infinite number of products and brokers calling on them to sell them products. The only thing they need to be convinced is previous sales experience.
Previous sales experience comes directly from the fact that you have X number of stores that sell X number of units per month. Why are we talking about the distributors and yet talking about the stores? There are several different transactions and types of stores. Let’s take a moment and explain those relationships first.
Take for example the convenience store Sheetz.
Sheetz now has more than 400 locations across six states — Pennsylvania, Maryland, Virginia, West Virginia, Ohio and North Carolina — and more than 13,600 employees. All Sheetz stores are company-owned-and-operated. The company has no plans to sell franchises.
Sheetz has a few distributors. These distributors, even if they purchased your product could not guarantee entry into that particular store. Most of the larger franchise or chain stores have a buyer and a process for becoming a new product in their locations. This normally involves a slotting fee.
A slotting fee, slotting allowance, pay-to-stay, or fixed trade spending is a fee charged to produce companies or manufacturers by supermarket distributors (retailers) in order to have their product placed on their shelves. The fee varies greatly depending on the product, manufacturer, and market conditions. For a new product, the initial slotting fee may be approximately$25,000 per item in a regional cluster of stores, but may be as high as $250,000 in high-demand markets.
In addition to slotting fees, retailers may also charge promotional, advertising and stocking fees. According to an FTC study, the practice is “widespread” in the supermarket industry. Many grocers earn more profit from agreeing to carry a manufacturer’s product than they do from actually selling the product to retail consumers. According to retailers, fees serve to efficiently allocate scarce retail shelf space, help balance the risk of new product failure between manufacturers and retailers, help manufacturers signal private information about potential success of new products, and serve to widen retail distribution for manufacturers by mitigating retail competition. Vendors charge that slotting fees are a move by the grocery industry to profit at their suppliers’ expense.
Some companies argue that slotting fees are unethical as they create a barrier to entry for smaller businesses that do not have the cash flow to compete with large companies. The use of slotting fees can, in some instances, lead to abuse by retailers such as in the case where a bakery firm was asked for a six figure fee to carry its items for a specific period with no guarantee their products would be carried in future periods.
That buyer will normally ask for the slotting fee, free first product, and will tell you who they would like to be the distributor. The difference is that some of these major chains let the manager choose a few items to buy on a regional basis. This process normally involves a regional manager and item approval. You will probably have to deliver as a D.S.D. item and placing a restock as demand needs. They will review your item every three months and if you ever run out then you will never hear the end of it. Little Debbie, Bon Appetite, and Frito Lays are delivered D.S.D. and it is a great option if you can economically support it.
DSD is used effectively for full truckload orders where bypassing distribution centers makes economic sense. DSD is also a favored approach when there is a strong requirement for supplier knowledge or service such as is the case with greeting cards for example. Having said this, there is pressure building up in the food supply chain to reduce the retailer’s reliance on DSD and push more volume through centralized distribution channels
The distributors to start with normally have a lot more “mom and pop” convenience stores. These are a franchise that is owned locally by one person or a group. They normally own less than one hundred stores in total. Many are one store operator/owners. Convenience Store Distributors that have their route made up mainly of these type of stores can grow your product distribution much faster than going with the Chain Stores.
One reason these distributors can help you so much is that they will employ an edge for you. They are usually having to sell the owner on products and has a relationship with them. It is a smaller circle of people so easier to penetrate with your product. This focus on growing your product doesn’t mean it is easy though. The product still has to turn and that means that the product will have to have marketing, sales support, customer education, and a great product. Convenience Store Distributors are just one piece to the puzzle. The puzzle has to complete or you will not get reorders.
One thing you will start to hear and you will probably gripe about at some point is the “Big Boys.” The larger companies that have been around and gained distribution and have deep pockets. These companies represent over eighty percent of the space you are competing for. They own the floor space, have rebate programs for the distributor and store, have a direct sales staff or core team of brokers to sell and educate about their products, and they have a mega marketing plan. They constantly have new spins on products and promotions. They also have the entire process backed up with in store specials, posters, commercials, sponsorships, celebrity endorsements, and many other value added reasons to participate in their product and brands direction. Don’t get mad but really learn from what they are doing. Know you have an uphill battle and take smart steps in synergizing your campaigns to market.
Some of THE BIG BOYS…
The first-ever CSNews Supplier Excellence Awards winners are:
• Marketing & Advertising Excellence: Anheuser-Busch Cos. Inc.
• Partnership Relationship With Retailers: The Hershey Co.
• Effectiveness of In-Store Promotions & Merchandising Displays: Mars Inc.
• New Product Innovation: NJOY
• Speed to Market: Monster Beverage Corp.
• Best Order Fulfillment of On-Time & Complete Deliveries: PepsiCo Inc.
Read on to see what retailers had to say about this year’s top suppliers
— Don Longo
So the larger convenience store distributors, such as McLane, are really only trucks. They have a sells team but they are order takers for large brands. The company doesn’t want it only that way but demand drives it that way. These hard working sells reps only have time to make sure the big brands are filled and the high turning items are stocked. Then the new promotions from the already successfully turning items have to reviewed and presented. Then if time allows with the few accounts they can they can upsell the new up and coming brand. Fiscally it makes sense for the company and they do a wonderful and great job promoting and distributing to retail giants and chain stores by keeping everyone happy. So make sure you know who your target is. Find out who the core market is for that convenience store distributor and make sure your product can withstand the movement needed for their stores along with the sales support needed to be developed and implemented.
McLane is an American supply chain services company, providing grocery and foodservice supply chain solutions for convenience stores, mass merchants, drug stores and military locations and chain restaurants throughout the United States. McLane is a wholly owned subsidiary of Berkshire Hathaway Inc. and is its single largest non-insurance business.
There is heated competition for accounts across the C Store distributors industry. These distributors are constantly trying to chisel away at each other. This is great when your product gets some proven movement because it is the driving factor why every wholesaler and distributor has their eyes and ears open for the next five hour energy, chip brand, or fast moving consumer goods.
Fleming, the grocery distributor, said yesterday that it had won a contract to supply 114 convenience stores for ConocoPhillips in five states.
To sum it up. Product and demand are the major factors in the buying decisions of any good wholesaler, distributor, buyer, chain store, retail store, outlet, regional franchise, and or anyone in this industry. The major buying decisions of a Convenience Store Distributor are made as a business that has to reap a profit. Understand their business, each one is different, but there are certain categories to understand of the distributors. Look for wholesalers and distribution that makes sense for your brand and what stage of development you are in. When you are ready to start the process make sure you are ready. Look at the adversity you are going to face and be ready for it. Not all days are going to result in a closed sale. You have to just “kick the can” every day and make sure you are moving it forward. The forward progress will pay off in the long run if you have the right product.
Good Luck, Check out the directory of stores, directory of distributors, and the check stand program for ways to get your product moving the right direction today.
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Locating and Who Are Convenience Store Brokers and How They Can Start Selling Your Products
Many of you might be wondering what the meaning and role of Convenience Store Brokers. These brokers have a wealth of knowledge and normally have the contacts that you so desperately need when starting out in order to get your product into retail outlets, stores, chains, and in front of the buyers, distributors, and wholesalers. You will need to be ready with a full sales presentation to sell the broker when you contact them. You will also have to understand the business model of a broker. Gaining an understanding of what the broker faces and how you can assist them is vital as your role with the broker continues past the first conversation.
When discussing the distribution channel some of the commonly used description terms are:
A convenience store, corner store, or corner shop, is a small store that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, tobacco products, and newspapers
Direct sales: This indicates that the sales are of the company is handled by its own sales force.
Representatives: They are independent contractors who promote the Company’s line. In order to justify the direct salesperson, they will carry the product lines to the places where sales volume is not large. Usually the reps do not take the title on the product and work on 5 – 20 percent commission.
Wholesale and manufacturing sales representatives sell goods for wholesalers or manufacturers to businesses, government agencies, and other organizations. They contact customers, explain product features, answer any questions that their customers may have, and negotiate prices.
Private label: In this private label, the product will be made by a company and it will be sold to another company. That sold product will be marketed by the company which buys it and it will sell the product in its own brand name.
Brokers: The brokers are very similar to reps but are independent from a company they are serving and they receive the commission for the product sold. Brokers mainly concentrate towards buyers rather than sellers. The rep will not be having wide range of competition since he will be dealing with different products but the broker will be having many competitors since he will be dealing with narrow range of the products.
Using a Broker
Many small companies decide to hire a food broker to sell the product into stores. The broker is a contract sales representative and besides conducting the sales many brokers offer a wide range of services, for a fee, to their principles. As a rule, brokers are not responsible for the shipping, invoicing or inventory control of products at the store level. The broker’s role is to make the sale, represent the “line” to the retailer and assist on the “pull” of the products at retail.
Pros and Cons – Brokers
Specialty retail distributors: They are the distributor who serves for the smaller markets like bike shops or baby stores. These are the distributors who take the title of a particular product and promote it. They usually carry a lot of products from a product oriented inventor companies. In most of the distribution plans of inventor companies’, they are the key component.
Trade distributors: Normally these distributors deal with the tradesmen versus consumer or industrial oriented accounts. Some of the distributors are: wood products distributors, auto parts distributors and plumbing distributors.
Wholesalers: They serve as a distribution point between the manufacturer and their customers. Wholesalers do not provide the promotion and services. Usually they do not carry the products from an inventor since they purchase large stocks of the product.
Some companies which are not having enough sales will choose the representatives. These reps help in growth of sales of that particular product.
You might be aiming for Target, but big-box retailers want to see a track record. Online sales are one way to provide evidence that your product can sell. Another is to take it to small stores, maybe even stores where you shop.
Brokers’ contacts and their past experience is a great way to judge if they can show success with your product. Many brokers will only represent a product that has a national account or charge a huge retainer monthly. This is a common requirement with many of the larger broker agencies. You may have to piece together many brokers and independent reps in order to get started.
Common requirement is a huge retainer or a national account:
SALES: Typical start-up sales retainer programs start at $6-7,000 per month for business development–They can negotiate this rate for more or less accounts to fit your needs and budget.
You will need your brokers and sales reps to become brand ambassadors. They will need to educate everyone they come in contact with about your upside and why you will be distribution successful. This is a vision and without it your brokers will perish.
Reps and brokers have very challenging and ever-changing roles. If all goes well, they are unsung heroes, with the brands, distributors and retailers all enjoying good sales, growing happy customers and appreciating the role that each played in making sales. If, however, things aren’t going well, the reps and brokers become scapegoats, the ones who let the others down and caused problems.
Finding the right broker: What to do when you start looking…
If you have the contacts from our lists, which you get when you purchased them, then you are ahead of these previous steps. You don’t have to put in the countless hours to find the right contacts and then see if the information you have is correct.
Brokers are looking for items to represent. They look for items that can be sold to the distributors, stores, wholesalers that they already have a relationship with. They look for items that turn regularly, have a good story, and are a great product. You must solve the problems in sales while your product is on the shelf. The broker is not there to solve that, they are there to supply you with purchase orders to get it to the shelves. This is a valuable point and I hope you get it.
How to find Convenience Store Brokers and distributors? This is the process we went through as we sold distributors to develop our directory of convenience store distributors, convenience store brokers, and other valuable contacts.
Step 1: First thing you need to do is that look for a trade shows, trade associations and magazines. You will find the trade associations and magazines even by searching in internet. You can refer Gale’s Research Directory of Broadcast and Magazines media and Gale Research Encyclopedia Association since these two directories will be having a wide groups even for the smallest magazines and trade associations. Once you find them, you must visit their site and look for the manufacturer’s distributors and representatives.
Step 2: List of manufacturers available in the industry should be made into a list. This list can be found in the trade magazines and association websites. If you visit the websites you will get to know more about list of exhibitors. On the website look into the SIC codes of different companies. Based on the SIC codes make a list of different companies of the industry.
Step 3: After visiting the website you will be getting a list of manufactures representatives and a list of distributors. A number of the companies will be searching for the distributors or representatives. Look for the companies which like to market you products. Once you find, now you will have enough volume when combined together which will entice the manufacturing reps or the distributors to carry the products.
Convenience Store Brokers are a great resource for any business looking to move in the convenience store arena. These brokers have contacts with the distributors, store buyers, and other useful resources. They are normally specializing in one class and trade such as tobacco or candy. Many are firms that have merged over the years in order to represent more lines and be able to handle the needed administrative task in a batching format. They batched all the paperwork into one company instead of three companies doing the same thing.
CAROL STREAM, Ill. — Three of the top regional convenience store brokers are joining forces to form the National Alliance Network (NAN), which will offer regional coverage on a national basis
Saverino & Associates, Total Convenience Marketing and KC Krafts–three regional convenience industry brokers–have come together to form a sales network to bring a “new way of doing business in the convenience store channel,” they have announced.
When you are looking to gain access to an account or market, a great place to see how hard it will be is to contact the distributors and brokers in that area and find out what the market is like. Ask them what it would take and what are you seeing. Be inquisitive.
Good luck in your sells and feel free to ask us any questions and maybe we can help you at 888-439-6468
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Convenience Store Distribution with a new product into Convenience Stores
How to get Convenience Store Distribution with a new product into Convenience Stores? When you start testing the marketplace with your newly developed product a great place to look is Convenience Store Chains, which you can purchase on our site. We also recommend going after convenience store distributors, which you can find at www.cstoredistributors.com. If you are looking for the fast track into convenience stores, you should also check out www.checkstandprogram.com. Checkstand Program can launch your product into anywhere from 200 to 5,000 convenience stores instantly. If your product fits the market niche of convenience stores then you should definitely target convenience store buyers. For this post we wanted to give you the best pointers to using our information in order to get you a big push of purchase orders coming your way when you attack this market using our lists. The Must Do List of Selling to Convenience Store Distributors, Convenience Store Jobbers, Convenience Store Wholesalers, Distribution Catalogs, Large Chain Accounts, Smoke Shops, Tobacco Distributors, Independent Convenience Stores, and Convenience Store Brokers.
The biggest thing to understand is that every sale comes down to one thing… Emotions. Don’t lose me here as you have to have a lot more than emotions. We have somewhat skipped ahead of the sales process, but I wanted to tell you the most important thing first!
Now Let’s Look At The Bullet Points Needed with Emphasis
First and foremost. Pricing, Inventory, Spec Sheets, Sales Sheets, and a “deck” power-point or PDF. Here is what all that is meant to do. You can see samples of these by googling the terms. Pricing is a Major Tricky Equation when you are pricing your product. Take into count the “Kohl’s way” of pricing items. Notice how everything in their store is on sale. Everything… This is what I mean. If you would sell your item for eighty cents ($.80) all day then it would be great to say one dollar per unit and buy two cases get the third free. By doing this buy X and get one free it becomes attractive to get higher volume orders. Make the math work. You also need to have your pricing broken down. Internally you need to know your cost. You also need to know exactly what your competition is selling it for. Convenience Stores do not care if you are a start-up and cost more, they just want to make a profit and they can sell your competition and make more, well that makes it hard for them to get on your team. So you know your cost and your competitions selling price. Now you need to run some numbers. What to include in pricing? You must include the following in your pricing. I will post more on this subject to explain further, but for the purposes of this post… we will just give the information.
You will need to have the following: • Master Distributor Pricing • Distributor Pricing
• Pricing on minimums, pallets, multiple pallets, truckload
• Shipping Rates and FOB (best to break this out into zone pricing)
• Brokers compensation – normally I would include up to 15% in case needed (this isn’t on the sheet… but build it into your pricing so you can pay it)
• Wholesaler Pricing
• Price to Store
You need all of those things run on the unit, the display, a master case, and (how many master cases are on a pallet) pallet pricing. Keep this matrix close to you at all times, because I guarantee your biggest calls are not going to happen when you are ready. So always be ready.
On the inventory portion of this matrix.
You need to know what you have in inventory, what the lead times are for each and every order size, minimum order quantity, and pricing tiers based on volume.
This brings us into the Sales Sheets. Sales Sheets show the Top 4-6 reasons why someone would want your product. You need to describe what problem it solves, why yours is the best, other key features, how much it has sold, and or any key accounts or celebrities that endorse your product. Make sure and have the UPC, Display measurements, and all available colors or flavors. Also on this Sale Sheet you need to have great images of the product. These images are of a single unit, the display, and the item in use or in a special bigger display. You should also have MSRP (Manufacturers Suggested Retail Price) and any other specials you are running such as buy three and get fourth free. The Sales Sheet is to show them why they need to buy the product and give them all the information so that they can do that and understand the value in doing that. MAKE SURE AND PUT THE M.O.Q. (minimum order quantity) on your sales sheets.
Spec Ops… C Store Distributors need the Spec Sheet
A Spec Sheet shows the pallet configuration. So you break down all measurements of unit, display, case, and a pallet. You also tell how much a truck load is. This is mainly for warehouse purpose but also so they understand how many units come in a display. This shows a Convenience Store Broker or Convenience Store Suppliers how many displays will come in one case and how many cases are on a pallet of your items. You also can use this sheet to show off some other cool displays that may work. You should have your end cap display and how many units it holds. If you get in a Convenience Store Chain you may get a power wing so have that configuration on there as well.
A Deck Page comes as a Power Point or PDF
The Deck Page is six to ten pages of who you are, who your company is, why the product exists (problem it solves), and the biggest part any and why there is a need for your product. You can also include how many accounts and what key accounts you are in currently. Showing the fact that people are reordering is a major plus.
Now we are ready to evoke emotions on the call.
Now that you have your sales package ready with killer images and videos and all the other great things you built for your presentations. Now we are ready to evoke emotions on the call. If you call Convenience Store Chains, or Convenience Store Distributors, then you better be ready to sell them on the vision. You have to get them on your team. This is more important than all that data that you just put together. You have to realize this. When that Jobber or Distributor places the item in the store it is normally from a sales rep. That sales rep doesn’t know your story and has no skin into that product being a success. That operation you are calling on runs like this. The owner or buyer takes the product and sets it into inventory and tells his reps to get it out to stores. They leave and go get it into some stores. Now here lies the problem, you don’t have a brand ambassador. This is your key. You need to convince how wonderful supporting and building up your brand is going to be and that you are going to put a lot into those sales guys.
Here is How to Get the Push Behind Your Brand
You need to get the owners of the stores, the chain buyers, and the Convenience Store Distributors behind you. You can use a broker to do this if this doesn’t fit your cup of tea. Convenience store brokers will go out and sell your product to key accounts if you can get them to represent your line. The other thing is that we offer this service for every Check Stand Program product. You run a sales contest for the sales reps. You also need to give them a lot of support, show them the deck, and walk them through the story. The story behind you and your company and about how much you believe in what you are doing. This passion is contagious and that is what you need to catch, so that those stores catch it as well. This will get you premium placements, nice in store promotion, and a mini sales force pushing your product at each store.
Now you have everything lined up… Time to Bring the Sell on the Shelves. You now need to perform. You need those units to move and sell through. You need to back up these stores placements with marketing, promotions, and advertising. There are a lot of ways to do this but by syncing up all these factors you can get your product moving with Convenience Store Chains or Convenience Store Distributors.
Get our directories and start syncing up immediately. If you have a tough time and want the fast track to get your product(s) into convenience stores, ask us about our Check Stand Program.
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