The key to running a successful business is having multiple revenue streams.
So that brings us to the question, as a Food & Beverage Distributor, what are some new revenue streams?
EasyVend has put together 5 New & Proven Revenue streams for Food & Beverage Distribution Businesses in 2023.
Let’s get into it!
To introduce new revenue streams, you need to look past your regular B2B or B2C sales channel. One of the most popular new revenue streams that many distribution businesses are starting to take advantage of is catering.
The benefit of introducing catering to your businesses offering is it is relatively inexpensive. Think about it, as a distributor you would already have many products in stock that may be relevant to a catering service. You just need to figure out the logistics and how you want to go about selling it whether it will still be B2B or if you want to branch out and go direct to individual customers like a restaurant chain would.
2. Business to Customer
The key to finding new revenue streams is expanding your offering. Most Distribution businesses only deal with B2B customers. The problem with this is it narrows your earning potential. Another great revenue stream opportunity available to you offering B2C services.
Expanding your offering to cater for B2C will open your doors for greater potential revenues and a larger market. The b2b market is quite limited, capturing new b2b customers can be difficult and expensive. Expanding to your reach to service B2C customers will give your business a brand-new pool of potential customers to sell to.
Before you consider expanding your offering to service B2C, it is important that you put together a plan on how and what you want to sell, your ideal target market and how you are going to go about capturing them.
3. Recurring Orders
Having a strong customer retention rate is vital for achieving success in the Food & Beverage industry. If you do your job right, customers should want to come back and order time and time again.
Many distribution businesses make the mistake of hoping customers will return instead of having a clear plan in place. One of the best ways to increase revenue is to offer recurring orders for your current customers.
If you find your past customers generally order the same thing at the same time week, the best thing for your business and more importantly the customer is to automate the process. The benefit of setting up automated recurring orders is you minimise your fulfilment work, make things easy for the customer and more importantly you reduce the risk of customers going elsewhere!
4. Expand Your Reach
Expansion has often been the go-to method of increasing revenue. Expanding your business whether it be expanding your product line or expanding location, can and will open new revenue opportunities for your business.
The benefit of expanding your business is it gives you the ability to target a brand-new audience. Before expanding your business it is important to plan appropriately. Expanding is not cheap and will require significant initial investment. It is recommended that you consult with relevant stakeholders prior to rollout.
5. Online Ordering
It’s no secret that Online Ordering is changing the Food & Beverage Industry. Over the last two years, customers whether it be B2B or B2C have transitioned from a traditional face to face or over the phone ordering method to completely online.
By far the biggest opportunity for Food & Beverage businesses to expand revenue in 2023 is by implementing an Online Ordering Website. Having an online ordering website will create a brand-new sales channel to drive revenue to your business. New and Past customers can place orders online at a time that suits them best!
As a Food & Beverage Distributor, your number one priority is to generate as much revenue as possible. To generate more revenue, your business needs to look for and introduce new revenue streams. The 5 streams presented are a few great ways your business can increase revenue in 2023 and beyond.
We hope you enjoyed reading this article. To read more articles like this, please visit the EasyVend latest news page here.
For food and beverage businesses, EasyVend supports and automates every part of your business, freeing you up to grow your sales simply, unlike other ERP systems.
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