Why it’s so hard for small companies to compete in the BBQ market.

 

If you look at BBQ Sauce products from the world’s largest producer of BBQ which have over a 50% market share in the USA, you’ll notice that BBQ is damn heavy.

Knowing this, it is much more cost effective to make it in large batches and send it in huge shipments.

 

No one can compete with how much “they” can produce and ship out, so that’s why retail buys so much of it. Companies make so much BBQ that they have to ship it to outside warehouses to stay competitive. To keep warehouse size into perspective, this company has opened up another 150 million dollar facility.

Knowing this, it would be extremely difficult for any small business to carve out any substantial marketshare in that space. In my opinion, people should be self-aware enough to recognize the potential limitations, but they should not give up just because they will never make millions. On top of that, I am always an advocate for competition, regardless of how futile it might seem. It keeps the market fresh and gives people more options.

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