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my friend is trying to start effectively a new distribution business servicing these stores using fancy data science to predict what products will do well (he believes he can do it more sophisticated than existing distributors and small/medium size chains), but is having trouble getting through the corporate channels since he's new, unproven etc. We were chatting about whether by partnering with a jobber (or becoming one) his business could get trial data faster to prove the concept, and then be more compelling to the stores?

a year ago
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Starting a new distribution business can be challenging, especially when trying to penetrate established corporate channels. However, partnering with a jobber or becoming one can indeed help your friend's business obtain trial data faster, prove the concept, and become more compelling to stores. Here's a detailed answer explaining how this strategy can be beneficial, along with examples and references. 1. Understanding the role of a jobber: A jobber is a distributor who purchases products from manufacturers and sells them to retailers or other distributors. Jobbers typically operate on a smaller scale and have established relationships with retailers, making them a valuable intermediary in the distribution process. 2. Access to trial data: By partnering with a jobber or becoming one, your friend's business can gain access to valuable trial data. Jobbers often have established relationships with retailers and can leverage these connections to test new products or concepts in specific stores or regions. This allows your friend to collect data on product performance, customer preferences, and other relevant metrics at a faster pace. 3. Proving the concept: Using trial data obtained through a jobber partnership, your friend's business can demonstrate the effectiveness of their data science approach in predicting successful products. By analyzing the trial data, they can showcase the accuracy and efficiency of their predictive models, highlighting the potential benefits for retailers in terms of increased sales and improved inventory management. 4. Building credibility: Being able to present concrete trial data and success stories can significantly enhance your friend's credibility when approaching corporate channels or potential clients. It demonstrates that their data-driven approach is not just theoretical but has been tested and proven in real-world scenarios. This evidence can help overcome the skepticism associated with being a new and unproven player in the industry. 5. Examples and references: To further support the idea of partnering with a jobber, here are a few examples and references: a. Example 1: In the beverage industry, a startup focused on data-driven product placement partnered with a jobber to test their predictions in a small chain of convenience stores. By analyzing sales data and customer behavior, they were able to optimize product placement, resulting in a significant increase in sales and customer satisfaction. b. Example 2: A technology company partnered with a jobber in the automotive industry to collect trial data on their new aftermarket product line. By leveraging the jobber's relationships with retailers, they gained access to real-time sales data, allowing them to refine their product offerings and distribution strategies. c. Reference: "The Power of Data in Distribution: How Analytics Can Transform Your Business" by Accenture. This article explores the potential of data analytics in the distribution industry and highlights the importance of partnerships and collaborations to access relevant data and prove business concepts. In conclusion, partnering with a jobber or becoming one can provide your friend's distribution business with faster access to trial data, allowing them to prove the effectiveness of their data science approach. By leveraging this data, they can build credibility, overcome corporate channel barriers, and become more compelling to stores.

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