How do I explain my maple producer’s bulk barrel buyers versus retail sales?
Split your sales into two channels and describe each: who the bulk barrel buyers are and how they order, and who buys at retail and how they find you. Show how each channel differs in volume, timing, effort and reliability, so a buyer can see what the business depends on.
Treat the channels as two different businesses under one roof. For bulk barrels, describe the buyers, how long you have supplied them, how pricing is agreed, when barrels are picked up and how they are graded or checked. Note whether the arrangement is a handshake or a written agreement, and whether any single buyer takes a large share of the crop.
For retail, explain how people find you: the shop, markets, online orders, gift sets or events. Describe the work behind it, such as bottling, labelling, packing, shipping and customer questions. Retail tends to take more effort per container, so show how much of your time it uses and how it behaves from year to year.
Be open about how the channels interact. Do you sell retail first and move the rest in bulk? Does the barrel buyer rely on you for a steady supply? A buyer will want to know what happens in a short crop. Offer to introduce the main customers, and have your accountant prepare the sales split so it matches your books. Also say which channel you would grow if you stayed, and why, because it shows buyers where the effort pays off.
Key takeaways
- Describe bulk and retail as two channels, each with its own buyers and effort.
- Say whether bulk arrangements are written or informal, and who depends on whom.
- Explain what happens to each channel in a short crop.
Related reading
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Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernment7 steps to increase your business’ value—before you sell it
- 02Business Development Bank of CanadaIndustryHow to sell your business
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