QUESTION ON Introducing a New Dip Recipe Into the Food Market
I have a recipe for a dip that is out of this world. I haven’t met one person who doesn’t like it yet. I would like to market and sell my dip but I don’t know where to begin. I would like to see my dip on the shelves of supermarkets like Ken’s steak sauce which was a recipe used at a family owned steakhouse before it made it to the shelves in the supermarket. Please help!!!!-
Advice by Susan Martin
Sounds delicious! Nichole, are you interested in actually starting-up a business of producing, marketing, and selling this dip? Or does it sound more appealing to try to sell the recipe to another company who already is in the business of producing and selling food products?
Either way, I would suggest that the first thing you do is to start off by researching the market. If the idea of producing and selling the dip is appealing to you, find out what’s really involved in getting a product like yours produced and onto the shelves. Alternatively, look into the possibility of copyrighting the recipe, and finding out what another company might be willing to pay for such a recipe. Try to examine what your options are, and which seems more appealing to you.
Obviously, selling the recipe is probably the most simple way to go, although you would probably have to seek legal council to ensure that your recipe is properly protected, and that any contractual agreement you might enter into would make good sense for you.
Producing, marketing, and selling the product yourself would be more involved. It is extremely important to start by checking out the local regulations around producing and selling a food product like this. Food is one of the most regulated businesses out there, as the government needs to ensure the safety of consumers.
How will you produce your product? Are you thinking about doing it yourself in your own kitchen? If so, make sure that it is legal for you to do so. Some states allow some food types to be produced from home, while other states will require you to use a commercial kitchen often separate from the home kitchen. There are a number of government regulations that may govern packaging, labeling and distribution of food products. There are some states that will only allow home-prepared food items to be sold in a more limited marketplace. Be sure to also check the health requirements for producing food products.
Aside from government regulations, there are a number of questions that you need to address:
- Is there any special training you would need or licenses you would have to obtain?
- How will your new dip be different from other products currently in the market? What will make it stand out from the competition?
- How much money would you have to charge to cover your costs and make a profit?
- Who are your competition?
- Are they producing the same exact dip flavor that you are thinking of producing?
- How are they distributing their products?
- How are you planning to price your new dip product? What is the competition charging?
- Would you want to go directly to the local stores or supermarket chains, or find a distributor that would. Perhaps there is a local “farmers market” in your area. Does the idea of sitting behind a table selling your product appeal to you? If so, visit one. Find out how other businesses do it.
- Examine how much money you would have to invest to get this thing off the ground before you would start to see a profit.
Starting up a business can be a lot of work! I would encourage you to figure out what you are truly interested in and are passionate about before becoming involved in something that might not enjoy.
If, after thinking about it you have more questions, don’t hesitate to write in again!
Recommended Resources on How To Introduce a New Dip Recipe Into The Food Marke,
- Brand New: Solving the Innovation Paradox — How Great Brands Invent and Launch New Products, Services, and Business Models
- Managing the Dynamics of New Product Development Processes: A New Product Lifecycle Management Paradigm
- Strategic New Product Development in the Global Economy
- Rolling Out New Products Across International Markets
Article originally published in May 2001. Updated March 5, 2012
Susan Martin created Business Sanity to help business owners and independent professionals who struggle with sales, marketing, management and productivity; and want to increase profits, avoid burnout and run their businesses most effectively. To find out how you can make more money with less effort and stress; visit Susan on the web at www.business-sanity.com/sales.html and subscribe to Business Sanity Tips or set-up your free consultation.
Category: Q & A