Minimums. Everyone has them. Manufacturers have them. You have them. We have them. Minimums aren’t a bad thing. Companies use them to do different things: control costs, drive customer behavior, increase sales or decrease sales.
I’m sure you’ve thought about how minimums affect your business. I’ve been thinking about ours a bit recently.
I wondered what ours meant for a typical customer: one that buys weekly and whose order averages just north of 10,000 pounds per order from Dot. They buy roughly 150 different manufacturers through Dot.
How much would that same customer have to buy if they were to buy direct from each manufacturer? The number is astronomical, nearly 60,000 cases and 800,000 pounds. And that’s just one order from each manufacturer. It’s an operational and cash-flow nightmare.
For decades, Dot has worked to provide customers with easy access to our products. As long as your order meets our 5,000-pound consolidated minimum (comprised of at least 1,000 pounds of each temperature ordered), you have a one-case minimum for nearly 40,000 items.
We think it provides our customers with two specific benefits:
Cost management through improved cash-flow and reduced need for physical warehouse space.
Increased sales through a cost-effective means to answer your customers’ requests with “yes, I can get that,” instead of “sorry, I can’t get that.”
If you have questions about the impact of Dot minimums on your business or the Dot Trip Program, contact your Dot sales rep today for more information.
By Kevin Baum, Dot Foods Customer Marketing Manager