In this politically correct business world, Cherry brings Sexy back… Increasing your supply bid frequency can improve Franchisee & Franchisor profits!!!

I hear excuses all the time… Dave, “We have a buying contract”, or “We have too many units now to buy from more than one supplier” or even better, “I have branded items stocked in my suppliers warehouse, so I have to buy everything from them”?  or the biggest, laziest excuse of all, “I am a franchise and only have time once a year to look at my pricing”… My simple response is… Why?

There is a sense of security and status that comes with your first buying contracts. But what are they really?  Essentially you are putting your complete faith in the buyers of your supply house.  What if the supplier doesn’t have as favorable a deal set up with the manufactures of your secondary items?  What if your supplier has a side deal to receive back end money and agrees to higher price terms up front with your manufacturer because they know businesses like yours have contract pricing based upon the landed product costs?  What if the supplier’s buyer is an idiot?  If you don’t think your supplier hires their share of idiots, then I want to live in your fantasy world please!

You have hit the big time with your 3 stores plus and your ego is engulfed and inflated when suppliers want to put your brand names on their shelves at only a 10% above landed cost mark up… Additionally, you are getting a 15% additional rebate, on you already fiercely negotiated fries and finally a whopping 10% rebate on the overall monthly buying totals… I bet you feel important with a deal like that???  I call it the lazy, short sited deal… and as a former food rep, what this deal says to me, is that the supplier is guaranteed 10% whether his costs increase or decrease, on the branded stuff and odds are, you move a lot of these items, so 10% is party time… They also know you sell a ton of fries and chicken breasts and take a loss to make you happy… and you feel awesome that your blanket 10% back every month is going to make you look forward to the check, but, what I know is the 10% came off their list price, which has an average mark up of 25% to 40%… BTW… sorry to inform you, but you are a home run account!

Here is a based on reality story, but, about 98.7% accurate from a numbers standpoint (gimme a break, I’m a story teller and rather than tell you 7, I’m combining them)… Your an international franchise company CEO and only have time for contract negotiation one time a year… How long do you spend negotiating with your suppliers and how many proposals does each supplier submit to you? “Each suppler submits 1 bid and it takes us about 2 weeks to go through”.  How many supply line items change from year to year and how many suppliers do you look at?  “We have 135 line items and change about 10% per year”.  Do you entertain competitive bids for your equipment and smallwares for each of your franchisees new openings? “No, we have over 335 line items of smallwares… this would be a daunting task”  Would you agree that decreasing your cost of goods and initial debt service would increase the success of your franchisees and… (in my best Perry Mason) is it not the franchisor responsibility to provide competitive price analysis for the people that have invested in their system?  I am going to answer this one for you (in my fake CEO interview), “YES”!  Simple enough answer?  How Dave?  How on God’s green earth can I help my system save thousands to millions? How can I help little Johnny and Susie’s daddy from losing their college tuition? is the answer and if you close your mind to adding technology and competition to your supply process, then you are leaving so much in the pockets of your suppliers.  The nature of the food industry has made suppliers get innovative in their pursuit of your dollars.  The dollars left in the details are the ones makes sure don’t get missed.  You don’t have to make things too complicated… Even the addition of one supplier to your weekly buying can lower your cost of goods as much as 12%, from day one.

Our system makes ordering from multiple suppliers as simple as ordering from one.  We essentially turn every warehouse in your supply chain into one big purchasing supplier, because you order from a single list and order from a single page. Whether your business can support minimum order quantities of 2 or 20 suppliers,’s ordering process is essentially unchanged.  Tell Cherry what you have or what you need and it all shows up!  Nice and simple.

Franchisors set up Cherry once and with a little maintenance for supply changes and the addition of new suppliers to the contract mix, you can review contract bids in seconds instead of weeks.  Have your reps submit as many revised bids to you as you care to feed into the software… Cherry checks each new bid in seconds.  Make each supplier sharpen their pencils and guide them as to where they need to help you if they want to sell you product…

Shop 5 suppliers instead of 3 and think about the profit possibilities from carrying a 2nd source of your inventory each week, to bid on your non branded business. Entertain supplier bids, monthly, quarterly, semi annually or whenever it tickles your fancy… Do long term contracts really mean anything? You will keep your suppliers honest and your franchisees will appreciate you making them more money.  BTW you make more money if they do… Just figured I would point that out!

Cherry shops your smallwares by contract or by location build… Cherry can integrate with your current POS inventory systems… They tell you how much… Cherry tells you from whom… Don’t use your inventory systems because they are difficult… Cherry’s new inventory and food cost tracking simultaneously does your physical inventory as you place your food orders… Simply set up each locations unique par levels and have each location count their stuff… Cherry orders the right amount, every time and keeps your profits in your pocket and not in the supplies on your shelves.  The savings potential is enormous and the ideas for using Cherry grow everyday.

PS… Coming soon… Voice Recognition Inventory… Speak the product and say a number… Say the product again or even a third time and Cherry adds the totals you speak as fast as you can talk the numbers… Cherry actually thinks numbers are sexy…  She’s weird like that… but in the sterile world of numbers, percentages and spreadsheets, Cherry is bringing Sexy back! is the future of supply purchasing with an old school approach to customer service, relationships and company pride!  Get Cherry started today!

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