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State University of New York Polytechnic Institute, Marcy ​hey guys Damian again from marketing food online tonight this actually it's going to be in response to some additional questions that I have from viewers about co-packers and I did it recently did about three or four videos back on my list there I did a video in regards to co-packers and what they do is a little bit about them this video I'm actually going to get into a few other items few other topics that you may not think about that are going to be pros and cons of dealing with a co-packer when it comes to a food production to be honest with you the majority of what I'm about to tell you is actually going to be a pro it's going to be something that's good the cons are very limited but there are some to be aware of but many many of the co-packers this day and age have got their routine down quite well so I would definitely definitely think about it if you are looking to produce mass produce a food product and you just don't have an enormous amount of money or revenue available right now to open up a you know two hundred thousand or a thousand hundred thousand square foot facility to mass produce your food products you can go to a co-packer they could take care of it for you so alright somebody can add a list of a few things I've made some notes here I'm just going to go down with you guys to just kind of in the back of your mind keep this in mind if you're starting to search for a co-packer so I'm gonna start with some of the pros right off the bat again sometimes I just mentioned co-packers can help you initially reduce your startup cost if you're looking to have a massive amount of your product put out as long as you of course find the right co-packer what I mean by the right co-packer is obviously somebody who produces within their facility a product that you're looking to make okay if you're in a trail mixes you can't approach somebody who has a facility set up to do spaghetti sauce it just won't work okay so there are specific types of co-packers they do specific things keep that in mind but they are great when it comes to startup cause like I said they've got the facility they've got everything there the only thing they're going to need from you is obviously a list of ingredients either the sources of those ingredients to get it to there and of course recipes and everything that you are going to want to have them do for you but aside from that that's at a much lower scale as far as the cost is concerned they've got the facility in the big machinery that cuts down on you having to go get out alone for a million dollars to open up the facility okay so real quick list co-packer so the pros are it's got reduced startup cost your startup in the heck of a lot smaller we do start across okay so they can produce also the other thing is that the lead time when it comes to dealing with retailers if you begin to either sell on Amazon directly in through FBA and you want to ship product and mass amounts to their facility in their FBA program or you're just selling to Whole Foods they're selling to a Publix you're selling to some other grocery stores and they need 10,000 cases they're going to be in a situation where your lead time the amount of time leading up to when you fulfill the order is going to be reduced considerably because the co-packer has everything in place you ship them over the ingredients they mix it together put it in the bag and they ship it out for you you're done okay so depending upon how the co-packer actually schedules it out and tells you hey you know what that produce out of them in the amount of cases it's going to be about a three week run I'm going to have to have about two months notice and you can tell your retailers you can tell whomever is getting it hey look I'll have it ready for you in about three weeks four weeks time they'll be like fantastic that's a short lead time that's great so reduction in the amount of time it takes to produce the product is super super important okay and your retailers will appreciate that and then we'll come back for more because as they begin to stretch out and fill up you know they start you with 100 stores and they have a thousand you can begin to increment only get bigger and bigger and larger orders for your co-packer okay so the next thing I want saw about is that they have the experience with products similar to what you're doing so if you go go to Purdue a co-packer and you say look I've got this three or four flavors of granola trail mix they're like well yeah we actually bag up trail mixes that we do mix not so we do dry drive messy snacks they're going to be familiar with the process which is also going to save time if you go to a co-packer who is now let's say transitioning into doing trail mixes or something in that year that you're more dry mixed mcnutt's or seasoning stuff and they're just beginning to do that okay it's something new to them they have they may have a lot of kinks to work out they may not understand the process completely but if you go to a co-packer who's already producing or manufacturing something similar then that's going to help them make it and produce as much faster for you okay so keep that in mind that something that's great about experience go Packers who have been doing it for you know several years to ten twelve years or more they know how to do what they do and they do it very efficiently so also the other thing is many cofactors is in this day and age they've actually developed within their in-house as they would call it they have a lot of R&D departments
that research and develop departments that can actually help if you have an idea for a product and you've got a recipe but they want to kind of fine-tune it they want to tweak it a little bit they want to make it better or they want to bring in a different ingredient they have a lot of research and development departments to help you do that now there are costs that traditionally fall is in line with that but keep in mind that if you need help kind of finalizing your packaging or finalizing the look of it or the feel of it or whatever it may be a lot of co-packers offer that as a service because they've just been doing it for so long now it's also an additional revenue stream for the co-packer and they can offer that type of research and development to the customers okay so the one thing that you want to keep an eye out though this is going to be some of the cons okay some of the things that may be drawback but just don't deter don't let this deter you from actually approaching a co-packer but some of the things to keep in mind the cost and schedule and the methods when it comes to having a co-packer produce your product you're going to kind of in a small way you're going to be at the mercy of their scheduling and then the process is that how they actually do it if you don't really care about if you don't mind as far as the actual processing how it goes along the assembly line that's not important to you which it really shouldn't be if they they get the product in the bag is sealed and gets the teller it shouldn't make a big deal okay but these cofactors are scheduled out several months some of them are six or eight months out so you may approach a co-packer and say look I want to do business and they're going to say that's great we can do it but I'm actually booked till next February and it's like August you know you're going to be like well that's not really going to work for me so you got to keep in mind that they're scheduling may affect the output of your product if you're looking to get to retailer and like look you know the resources I need to have it by November obviously that co-packer is not going to work for you so there's a lot of factors that are going to come into play with this so you got to shop around you got to find I would definitely personally say approach at least five co-packers because you're going to get three to four of them that potentially may have issues with your timeline okay so keep that in mind as well you pick up the phone as you call the first co-packer and they can't do it don't get discouraged there's this literally I did a listed it at Google search to follow up on a list of for a client in regards to Co factors and there's over six thousand co-packers in the US alone so you'll find another one it may not be in your state or your city but you can find another one trust so yep okay so the other thing was that co-packers will produce your product but again so one thing you want to also keep in mind is that you end up kind of having to conform to the types of equipment to the type of facility and the types of runs that they're going to have because that's just how they do business so if you actually meet with a copacker and you go to their facility and you're not really feeling the way that they're actually doing the process as I kind of mentioned before the the lines that they have set up to produce at the facility whatever may be kind of aesthetically as far as machinery and such you're going to have to kind of bite the bullet and just go with the flow because if they say look I can get this back without for you but you know what I'm just not feeling the way that you guys are doing the process but the final product is good I'd say let it go don't make a big deal about it some people actually do they want to look and they find a co-packer that has a production line that it fits their product it fits what they had in their mind and all this other stuff you can delay yourself a lot by doing that okay now the only other thing that I said I notice as a con it's kind of a good thing a bad thing some facilities that you go to obviously if you've got a product and they produce a similar product the drawback is that there may be a client and they don't normally the kind of normally they don't normally explain this to you but they may be doing a run of a product of a competitor okay so which may or may not affect you may not you may not really bother with that or may not be able to much interest but again back to granola let's say you've got a line of snacks and it's granola based and it's like a trail mix they may be producing three or four other companies that are doing trail mix now there to me I don't think that doesn't bother me one iota because there's so much business out there and there's so much opportunity if dip reducing kid companies of trio mix and I have a trail mix I don't really care just bag my stuff and get it to the accounts that I've already gotten existing and move on I thought about this a lot and I'm going to tell you a little bit about this when I went onto Amazon and open my store I had a lot of candies trail mixes spicy nuts and a whole bunch of different products that I began to offer sell on Amazon and I didn't for literally I'll not be a height honest with you I didn't pay one iota one minute of interest in finding out who's selling out there I didn't research and find out what's the hottest side in myself I stuck to what I made put a listing up put a price promoted into my social media and all that other good stuff ran my sales promoting it through Amazon and I do extremely well with what - and we got 686 items that are available on Amazon in our store we always add new products every single day and you may sound like wow that seems like a lot of products well we have cake balls we do bundt cakes we do cookies we do chocolate pretzels we do sprinkles we do brittle we do rock candies we do a lot of stuff but by offering a variety of stuff I can appeal to more customers and my customer base is enormous everything from the people who love chocolate to people who may be looking for sprinkles for baked goods and everything in between so we make it to order of course as you may know about our business
people place an order we make it fresh we ship it immediately it's done now FBA is a new outlet for us and we're moving in that direction so to get back to what I was saying is if you if you feel like you're kind of threatened by competition or something that's going to deflate your business okay my viewpoint is the Internet is all over the globe on Etsy alone I've shipped over 15 countries there is enough business out there for everybody the business is growing and growing not going to go away anytime soon and if you're online you literally I mean it sounds like a cliche but you have the world at your fingertips it's true and especially if you're on Amazon you have an opportunity to meet hundreds of millions of people everywhere and they're just it's unbelievable I personally have never I would never have a complaint about about Amazon business at all our says literally month-over-month we're averaging about eighty to ninety percent increase in sales over the previous year and that's been super good so don't ever get discouraged I mean adult thing about doing research and finding out the hottest problem products if you're into doing that then go ahead and do it if you're making products like we do just make your product stand by your item believing your product post it promote it and call it a day it's going to sell ok so just keep that in mind if you're getting you're going to a co-packer they may be producing a competitor's product something similar that's okay but at the end of the day man I'm telling you it there's so much business out there don't let that discourage you ok so I hope this information helps you out if it did you give me again give me a thumbs up if you like my videos if you have a question comment down below if you are not a subscriber in your comas video please subscribe to my channel I've got over 200 videos and every day I try to post a couple of videos every single day take a few minutes out and hear my facility and just send in my office and do these videos to try to help you guys promote your products and develop a free product so if you'd like to check out a little more questions you want to do work on one on one with me I have consulting available on our paint channel marketing food online to the number two and you can definitely subscribe to that channel and I would help you out as much as I can so thank you guys for watching City College of New York.
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