Reddy Ice’s transition to a 7 lb. bag provides an opportunity to carry more inventory and increase sales volume and revenue.
What can you expect when you make the switch?
Reddy Ice’s 7 lb. bag presents several opportunities for your retail ice sales, including:
- Increasing your capacity for inventory
- Boosting your stock levels
- Option to maintain the current 10 lb. pricing to grow profit margins
- Encouraging more unit sales as consumers purchase multiple bags of ice
Frequently Asked Questions
What benefit does this change offer to the retailer?
Over the past 12 months we have conducted multiple tests around the shift from 10 lb. to 7 lb. bags. These tests indicate that this action will allow our customers an opportunity to carry more inventory in the same merchandiser (which should result in reduced out of stocks and increased service levels), as well as provide the customer with a potential volume increase.
More information regarding the results of one study can be found here.
When will the transition from the 10 lb. to 7 lb. occur?
Customers are being notified of the product change effective immediately. All deliveries beginning October 1 will be for the 7 lb. bag.
Why is Reddy Ice making this package change and holding the price for the new 7 lb. at the current 10 lb. price?
Due to inflationary pressures, the cost to manufacture and deliver our product has increased significantly, making the current business model unsustainable. From January to July, resin has increased 52%, at the same time wood pallets have increased 4x. Due to a tight labor market, delivery costs have escalated and forecasts indicate costs will continue to rise.
As a result, we must either increase the price to our customers or implement a change to the product. In evaluating options, it was determined transitioning to a 7 lb. offering was a significantly better option.
HOW WILL MY EXISTING 10 LB. INVENTORY BE HANDLED, WILL YOU CREDIT ME FOR THAT INVENTORY?
Our team will work to minimize your inventory on-hand in order to reduce sell-through timing for the 10 lb. bag. When filling your box with 7 lb., all 10 lb. inventory will be moved to the top of the merchandiser allowing you to deplete the inventory more quickly.
If you carry back stock, we recommend selling through all your 10 lb. stock before placing the 7 lb. on the floor.
WILL MY ISB OFFERING CHANGE AS WELL?
Yes, our team has developed an implementation plan to update all ISB machines to produce 7 lb. bags. More details will be provided regarding the specific timing of the change for your machines, but we anticipate this effort will begin October 1 and be completed within 30 days.
HOW LONG WILL IT TAKE TO CONVERT THE ISB MACHINE?
It will take about 2 hours to convert your ISB machine. Reddy Ice technicians will handle everything needed for the conversion. Prior to conversion, we will notify you of the date that the transition will occur for your specific store(s).
WILL YOU BUY BACK MY UNUSED ISB BAG INVENTORY?
Reddy Ice will work with each store location to minimize on-hand ISB bag inventory between now and the transition date. Unused 10 lb. ISB bag inventory at the time of the transition will be credited out and new 7 lb. ISB bags will be sold into the store. ISB bags that have already been produced and are in the merchandiser(s) will not be credited out or removed.
I ORDER PALLETS FOR OUR WAREHOUSE PROGRAM AND FOR HIGH-DEMAND PERIODS. WILL THE PALLET SIZE REMAIN THE SAME?
A pallet of 10 lb. bags contains 210 bags, with the transition to 7 lb. bags the pallet will now have 270 bags. You will be notified if this number changes and we will provide revised pallet weight and dimension changes when we send the product set-up information.
WILL YOU PROVIDE NEW POINT-OF-SALE MATERIALS FOR MY STORE AND MERCHANDISER BOX?
Reddy Ice has developed several point-of-sale options to promote the 7 lb. offering. These materials may be ordered through your Reddy Ice Account Representative or by emailing marketing@reddyice.com.
WHAT DO I NEED TO DO TO SET-UP THE NEW 7 LB. BAG UPC?
We suggest you identify the process and timing to introduce the new UPC into the retailer’s Product Information Management System. If you have a new product set-up form, please send to your Reddy Ice Account Representative. If you have any questions regarding this process or need additional guidance, please contact your Reddy Ice Account Representative.
HOW CAN I OBTAIN NEW PRODUCT SCAN CARDS REFERENCING THE NEW UPCS?
New product scan cards are available for download below.
WHAT IS THE NEW UPC FOR THE NEW 7 LB. DSD PRODUCT?
The new UPC for the 7 lb. DSD offering is 860006114916.
WHAT ARE THE DIMENSIONS FOR THE NEW 7 LB. DSD PRODUCT?
The dimensions for the 7 lb. DSD bag are ~11” x 4 x” 21”.
HOW MANY BAGS 7 LB. BAGS COME ON A PALLET?
There will be 270 7 lb. bags on a pallet; the goal is to be at 300 bags/pallet as soon as possible.
WHAT ARE THE 7 LB. PALLET DIMENSIONS?
~ 48″ X 40″ X 70”
WHAT IS THE NEW UPC FOR THE NEW 7 LB. ISB PRODUCT?
The new UPC for the 7 lb. ISB offering is 860006114923.
WHAT IS THE NEW UPC FOR THE NEW 16 LB. PRODUCT?
The new UPC for the 16 lb. DSD offering is 860006114961.
WHAT ARE THE DIMENSIONS FOR THE NEW 16 LB. PRODUCT?
The dimensions for the 16 lb. DSD bag are ~11” x 5 x” 28”
HOW MANY BAGS 16 LB. BAGS COME ON A PALLET?
There will be 120 16 lb. bags on a pallet.
WHAT ARE THE 16 LB. PALLET DIMENSIONS?
~ 48″ X 40″ X 70”
WHAT IS THE NEW UPC FOR THE NEW 5 LB. PRODUCT?
The new UPC for the 5 lb. DSD offering is 860006114930.
WHAT ARE THE DIMENSIONS FOR THE NEW 5 LB. PRODUCT?
The dimensions for the 5 lb. DSD bag are ~10.5” x 4 x” 19”
HOW MANY BAGS 5 LB. BAGS COME ON A PALLET?
There will be 360 5 lb. bags on a pallet.
WHAT ARE THE 5 LB. PALLET DIMENSIONS?
~ 48″ X 40″ X 60”
To learn more about the 7 lb. product and review a sample case study, download our info sheet.
Additional Questions Regarding the Transition?
Contact the Reddy Ice Customer Care Team at 800.280.2051.