Prices in HoReCa

Prices for HoReCa  -  Any serious player in HoReCA space will have to control its gait in the very prologue of entry in Indian HoReCa, by strategizing its prices. Initially for the first few months a exciting low priced list help make major impact & later new product additions & new customers give a leverage of bottom line. While deciding the prices in HoReCA the following points are reqd. to be taken care of :-

A. HoReCa buys in bulk ( 90% of HoReCa). Have it on the top that the price will have to be equally enticing in proportion to the order you anticipate from your client.
B. HoReCa (again over 90%) buys goods on credit so take the dent of bank interest pre-account on the prices.
C. See if your HoReCA Price List can have a range or a basket of SKUs which DO NOT CLASH with the regular retail / MT. Even if the product is same in both cases but the nomenclature is different - this way you can make your life simple.
D. Have a price list which gives enough scope of stability as the conversion time of a HoReCA sales call normally takes 3-4 weeks. Please book your stocks with in the company so that you get the right price at the time of conversion.
E. Make a Price List - HoReCa SANS all schemes ( HoReCa likes net prices mostly ) 10 +1, 12+2 makes things complicated. Check competition's price list for a reference.
F. Price List for HoReCa ideally should be ALL INCLUSIVE - incl. primary freight, secondary freight, F.O.R., including VAT, CST, APMC, Cess etc. only if the product is not the commodity but FMCG then probably you can also give discount from the MRP.
G. Lastly, for the rest of the 10% HoReCa who buy in advance- give the rock bottom Price List custom -made ONLY FOR THEM.


Horeca Specialist

Product in HoReCA

PRODUCT - this plays the MOST IMPORTANT role in HoReCa vertical, as the product ideally & mostly is required in bulk packs - from Sugar to Flour, to Oil to Cling Film to Rice, to Pulses - the hotel normally requires all in huge packs --- firstly it is low priced than a small retail pack, easy to store, convenient to account for, easy to reissue in the kitchen.

Mostly Chefs do not want pilferage & large packs help them control it-- in case of Corporates  clients too large order, bulk order is the key - so even if you are selling a Car, Bike, or a JET pl have rates for quantity in your hand so that it is easy for you to negotiate on the table.

I remember a Japanese car manufacturing offering a discount equivalent to Maruti Standard car if one buys two of the top most models in their product line. SO you can imagine if there are many clients who buy 2 cars ( premium segment) and get a small car free( practically).

Bulk is the key to HoReCa, you might think that the product is taking to fly off as per the standard price list, make a QPS ( Qty Purchase Scheme ) & then make an enticing offer to any HoReCa or corporate customer & you will get the sale.

Product line with multiple assortment is always easy to sell, but a single product will always assemble great deal of barriers once you go to sell it. In that case other P's in my following blog posts will help you to excel in HoReCa. We just need to create a USP in that case to make customer 'want' our product.

Horeca Specialist

10 P's of HORECA

Hi Guys,

Pl note the following 10 P's of Horeca:-
1. Product
2. Price
3. Placement
4. PR
5. Promotion
6. Pro-Activeness
7. Patience
8. Power
9.Positive attitude
10. Product knowledge ( specially if it is an ingredient).

in my next 10 Posts I will elaborate on each on of them.

Thanks

Horeca Specialist

What a HoReCa Specialist does for an employer ?

HoReCa is complex business, ( some may read complicated...) as there are more than one factor directly or indirectly, positively or adversely effecting the performance effecting what is required .

So, anyone who wants to dive into the sea of complex yet fruitful vertical must know few primary things which actually form the fundamentals of HoReCa Business.

After any successful HoReCa deal the following things are sure to happen :-

1. An order ( Purchase Order ) which will get good revenues for the organization.
2. At a rate which will be lowest under the sky. ( gives little displeasure to the CFO/Revenues Cell) but ensures turnover and gets the inventory roll.
3. Assuring yearly consumption of a respectable quantity.
4. Opens an opportunity to up sell, cross sell company's other assortment.
5. Gives a repute to the company -- All in the Company my announce the new customer to enhance the corporate image).
6. "Competitors' envy Company's Pride - we use the name of this customer as reference for our next few BIG negotiations,again to successfully close business deals.

But HoReCa Specialist must adhere to certain P's of sales & marketing which I am going to mention in the next post. These form the basic DNA of HoReCa and without these P's enabled, the performance suffers...

Open Letter to the Queen Elizabeth - Great Britain

To,
Her Highness Queen Elizabeth,
Buckingham Palace,
Great Britain.

Respected Madam,

I am a lawful citizen of India aged 39 years, and I am facing lots of trouble here in my country. Hence I want to request you to carefully go through my problems and listen to humble request which is requested in the last part of my letter :-
1. In India the rates of fuel are sky rocketing, the electricity rates have seen a spike recently, so is happening to the home fuel ( LPG Cylinders), where in Govt. of India says that each of the natural gas companies are getting a hit of over Rs. 65 Crores ( Approx. 100 million pounds )daily. Few have shown their anger & have shared complains with the help of media, but ironically, none of the opposition parties (currently in India) have a common stand on this, neither they have enough financial constitution to fund a true campaign to fight this nor an effort to roll back this.

2. Due to reason number ONE entire budget of the common man has gone for a toss. There have been quarrels among family members resulting into mutual dis respect & hatred, adversely effecting the human ideology of a true Indian.

3. On the other hand almost 77 % of the top politicians here have earned millions & billions ( as per the recent due diligence report on their assets) - already declared in the media.

4. In spite of recent agitations & revolutionary movement done by Mr. Anna Hazare - not a single penny out of Multi Billion Rupees stocked in forigen banks by our politicians has been restored/revoked or brought back to India. Only talks & false time lines are being rearranged in the calendar as a complete eye wash.

5. India has not been able to either completely prevent terror or even catch the culprits after the mishap. Media says the investigative agencies are putting in their 100 % but all is in vain. Over 11 blasts in the last 10 years - hundreds of deaths compensated by few millions of rupees.

6. Last but not the least;  some western super powers are also intervening ( showcasing this as a helpful job of theirs) but we Indians know that they are newer genre of the human civilization made out of 13 British Colonies united together, want the Nuclear Super Power of Asia i.i.e. India,  remain peaceful but they do not want us to flourish, want our degrowth & thus put brakes on our plan to become future global leaders spearheading the new era of HUMANITY.

Thus YOUR HIGHNESS, I request to listen to my plea :-

1. I request you to talk to our principals and take charge of the Country for next 10 years. We understand that where ever British Colonies have been established in the recent 10 - 12 odd decades, the place has seen enormous growth.
2. This might sound crazy, we have a huge market for FMCG products worth Rs. 85,000 Crores but due to our incomplacency we are unable run the multi - faceted , multi - cultural & complex country. We still see your legacy to rule when we compare your major contribution like railways, infrastructure, dams, industry, roads, shopping arcades, Connaught Place, Highways, Courts other important systems & etc. etc. with internal developments after the independence viz a viz the similar developments in other countries which were under your rule quite recently.
3. Once you decide to rule us for a stipulated time ( 5-10 years) I request you to bring back BILLIONS of money stocked up there in those banks & spend on us ( after deducting your entire Fees).
4. Also, please ask our neighbouring countries ( some of them seem to be poor but we know they all are immensely resourceful) to be part of this project & helping you to touch economies of scale. You know handling 4-5 countries will help all.
5. Last but not the least - once you make up your mind, please stop us to go the NUCLEAR way.


Thanks a lot for the patience.... Your Highness.

With best of regards,

A simple educated Indian Horeca Specialist

What is the meaning of Horeca ?

This term HORECA is used in the Netherlands where it is thought to have originated, though it is also used in Spain, Portugal, Belgium, Romania and international beverage companies specializing in this sector.

HoReCa is an iconic business term which primarily refers to a sector of the food service industry, to establishments which prepare and serve food and beverages. The term is a syllabic abbreviation to the words Hotels & Restaurant Category but to some it also may mean Hotel/Restaurant/Café (or Hotel/Restaurant/Caterer, or Hotel/Restaurant/Canteen) which as per my knowledge is CORRECT.

There are few industries who add few more stars to this like HoReCa & Ma which actually means Hotels, Restaurants, Caterers & Massage Parlours ( this works more easily for wellness, olive oil, cosmetics industry).


Many companies also comfortably call or term it as the FOOD SERVICES or Institutions business.  

Who r our customers ?

The people working in any kind of FOOD & BEVERAGES Projects, Managing Directors, CEOs of F & B Outlets, Pre-opening teams of F & B Outlets, kitchens right from CHEFS, PURCHASE MANAGERS, STORES IN-CHARGE, F & B MANAGERS, Front Office Staff, Housekeeping, Engineering, F & B Controls, Supply Chain heads of large QSRs ( Quick Service Restaurants) and ANY SOUL RELATED TO FOOD is our PROSPECT.