Bulk Food Distributors Who Only Look at Sales Are Bound to Lose Money!
⭕️As the bulk food business grows, many distributors encounter a common problem:
With more SKUs and more display cabinets, sales are not low, but it is increasingly hard to tell which products are actually making money.
In the past, when handling just a few brands and a few display cabinets, salespeople could rely on their experience to remember which products sold fast and which needed replenishment.
Once you start contracting entire sections, the situation quickly becomes complicated.
Cakes, bread, biscuits, candies, jelly, meat products, spicy instant snacks, konjac, puffed snacks... hundreds of SKUs are simultaneously placed in one bulk food section.
At this point, simply looking at "how much money this cabinet sold in a month" makes it hard to judge operational quality.
🎈At Xi'an Baiyuanbao, we saw how they took this problem one step further.
They look not only at cabinet efficiency, but also at bin efficiency.
Suppose a cabinet has 100 bins and generates 10,000 RMB in sales per month.
On average, each bin produces 100 RMB per month.
⬇️Products below 100 RMB need further investigation:
- Is there a placement issue?
- Is the display layout problematic?
- Is the price band mismatched?
- Does this trade area simply have no demand for such products?
If they still don't sell after adjustments, replace them.
❗️Jia Zhongxin put it directly:
Best-sellers are never out of stock; slow movers never occupy a bin.
Baiyuanbao also looks at per-bin sales together with replenishment frequency.
If a product is replenished every week, it shows sustained consumer demand.
If it is replenished only once a month, or not at all for a long time, it needs to be reassessed.
Stores are also graded by replenishment frequency.
● A-level stores replenished more than 4 times per month can test new and potential products;
● B-level stores replenished 2–3 times per month should focus on proven best-sellers and potential products;
● Stores with lower replenishment rates should prioritize mature best-sellers.
After serving more than 4,000 retail outlets, Baiyuanbao can no longer rely on the experience of a few veteran salespeople.
📈So they further broke down performance evaluations into:
sales revenue, weekly sell-through, "top 6" in subcategories, and sales profit.
Sales revenue carries only about 20% of the weighting.
Behind this is a shift: bulk distributors used to focus most on "how much was sold."
📝Today, the more important questions are:
Which products are selling? Which bins are producing? Which stores deserve continued investment? Which investments are already eating into profits?
⏳On August 25, we will go to Xi'an Baiyuanbao's warehouse and retail outlets to see on-site how they handle price bands, product assortment, bin efficiency management, and salesperson assessment.
If you are currently doing cabinet contracting or section contracting, or planning to expand your bulk business, you are welcome to pre-register for the "Bulk Distributor Contracting Model Research Community."
On-site, we will show how a bulk distributor with annual sales of 200 million RMB breaks the rough "selling goods" process down to every store, every cabinet, and every bin.
⭕️As the bulk food business grows, many distributors encounter a common problem:
With more SKUs and more display cabinets, sales are not low, but it is increasingly hard to tell which products are actually making money.
In the past, when handling just a few brands and a few display cabinets, salespeople could rely on their experience to remember which products sold fast and which needed replenishment.
Once you start contracting entire sections, the situation quickly becomes complicated.
Cakes, bread, biscuits, candies, jelly, meat products, spicy instant snacks, konjac, puffed snacks... hundreds of SKUs are simultaneously placed in one bulk food section.
At this point, simply looking at "how much money this cabinet sold in a month" makes it hard to judge operational quality.
🎈At Xi'an Baiyuanbao, we saw how they took this problem one step further.
They look not only at cabinet efficiency, but also at bin efficiency.
Suppose a cabinet has 100 bins and generates 10,000 RMB in sales per month.
On average, each bin produces 100 RMB per month.
⬇️Products below 100 RMB need further investigation:
Is there a placement issue?
Is the display layout problematic?
Is the price band mismatched?
Does this trade area simply have no demand for such products?
If they still don't sell after adjustments, replace them.
❗️Jia Zhongxin put it directly:
Best-sellers are never out of stock; slow movers never occupy a bin.
Baiyuanbao also looks at per-bin sales together with replenishment frequency.
If a product is replenished every week, it shows sustained consumer demand.
If it is replenished only once a month, or not at all for a long time, it needs to be reassessed.
Stores are also graded by replenishment frequency.
● A-level stores replenished more than 4 times per month can test new and potential products;
● B-level stores replenished 2–3 times per month should focus on proven best-sellers and potential products;
● Stores with lower replenishment rates should prioritize mature best-sellers.
After serving more than 4,000 retail outlets, Baiyuanbao can no longer rely on the experience of a few veteran salespeople.
📈So they further broke down performance evaluations into:
sales revenue, weekly sell-through, "top 6" in subcategories, and sales profit.
Sales revenue carries only about 20% of the weighting.
Behind this is a shift: bulk distributors used to focus most on "how much was sold."
📝Today, the more important questions are:
Which products are selling? Which bins are producing? Which stores deserve continued investment? Which investments are already eating into profits?
⏳On August 25, we will go to Xi'an Baiyuanbao's warehouse and retail outlets to see on-site how they handle price bands, product assortment, bin efficiency management, and salesperson assessment.
If you are currently doing cabinet contracting or section contracting, or planning to expand your bulk business, you are welcome to pre-register for the "Bulk Distributor Contracting Model Research Community."
On-site, we will show how a bulk distributor with annual sales of 200 million RMB breaks the rough "selling goods" process down to every store, every cabinet, and every bin.
