Finding the right supplier is critical to any food-based business. And it doesn't matter if you run a restaurant or a shop where you offer food and drinks to a retail customer. It is the type of assortment and the price at which you buy products from the wholesaler that determines the attractiveness of your offer. Many people wonder if it is possible to negotiate the price of goods purchased from a distributor. The good news is that it is absolutely possible! And we will explain what the scope of negotiations depends on.
Grocery wholesaler - why is it so important?
Choosing the right grocery wholesaler is a key issue for your business. The selection of a reliable supplier will allow you to ensure the attractiveness and continuity of the offer in your store or premises, and it will also help you control the cost of the raw material. In short: the success of your own business depends on the choice of supplier!
Searching for your partners and establishing business relations should not only be the starting point for running your business, but also a permanent part of it. As they say, there are no sentiments in business! If you find a new wholesaler who guarantees better trading conditions, there is nothing else to do but take advantage of the opportunity to buy goods at a better price or higher quality.
How to find a grocery wholesaler? The easiest way will of course be to use a search engine. This way you can find a distributor both in your area and even in another country. However, do not forget to look for the right opinions about a given company. It is also worth using the industry discussion forum and participating in various fairs and exhibitions, which are a great opportunity to establish business contacts. They are also an opportunity to talk openly about the terms of cooperation.
Price at the distributor - what does it depend on?
As we have already mentioned, the price at which you buy the goods significantly affects the attractiveness of the offer in your company. The cheaper you buy, the cheaper you can sell yourself, and this is a factor that definitely attracts the customer.
The price of the goods can be individually negotiated with the distributor, although it will depend on various factors. Note that usually wholesale prices for goods are not listed on the distributors' website. Prices, if any, are addressed to the retail customer.
Often, in order to be able to check the starting prices with the distributor, you need to register in their system, confirming your status as a trader. Before placing an order, you will still need to contact the wholesaler's representative. It can be by e-mail, telephone or take place "live" in the seller's office. It is on the basis of talks, negotiations and discussion of needs that you have the opportunity to get acquainted with the full wholesaler's offer and determine the terms of the order.
The wholesale price will not be the same everywhere and may change over time. Factors such as the availability of a given product (yield yield) have an impact on the overall level of wholesale food prices. Processed products will also be more expensive, as they generate additional costs related to energy (for production), transport, labor and storage costs.
What affects the final price of the order?
As we have already mentioned, it is possible to negotiate the price of the order with the distributor. And contrary to appearances, this is not only a possibility, but a very common practice. The final price of the order is influenced not only by the client's negotiation skills. Much will depend on the type and quantity of goods purchased.
From the customer's point of view, it is more profitable to buy from a wholesaler who has an extensive range of products. If you can order both basic food products and sweets or alcohol from one supplier, your chance to negotiate a more attractive price for the whole is greater. Another main factor that will allow you to conclude a favorable purchase contract is the frequency of orders. The more often you use the services of a given distributor, the more discounts you will receive as a regular customer. That is why it is so important to find a good supplier that you will be able to "stick to" for a long time. It will simply be beneficial for both parties!
Threats for the distributor - how to acquire a customer?
The size and variety of the order is one thing. Your negotiation skills and knowledge of the market are also of great importance. Remember that the distributor will also not earn if he does not sell the goods and does not attract a customer, so he should also present you with an attractive offer.
Competition on the market is the first threat to the distributor in acquiring a customer. Before you place your final order, contact several suppliers and compare their offers. There is no shortage of food wholesalers and distributors in Europe, and sometimes even import from abroad may turn out to be more beneficial than buying from a close wholesaler!
Another threat to wholesalers should not be forgotten either. We are talking about the phenomenon of short supply chains. These are situations in which an entrepreneur (e.g. shop owner or restaurant manager) buys food products directly from nearby farms. Of course, the processing capacity of smaller farms may sometimes turn out to be insufficient to meet the needs of customers, and the prices of the products themselves may be higher. On the other hand, this is not always the case, and there is a widespread belief that regional products are of higher quality, which may be tempting for some retail customers. A wholesaler who is aware of this type of competition must ensure that his "mass offer" is sufficiently attractive.
Before you start negotiating, try to gain insight into the market. Check not only wholesale prices from smaller and larger suppliers, but also try to know the retail prices of a given product. This will allow you to estimate the level of your potential profit. Knowledge of the market can also be used as a negotiating element in talks with the wholesaler.
Various types of reports will help you in a comprehensive market analysis (many of them are publicly available on the Internet, for example on the websites of the Central Statistical Office) or special applications that facilitate the comparison of prices of a given product. It is worth using these tools regularly, because their proper use can help you optimize your profits!
Summary
Profitable purchase of goods from the distributor is the key to the success of your company. Fortunately, it is common practice to negotiate order prices individually when buying in bulk. The final price of goods is affected by both factors beyond the distributor's control (yield yield, energy prices, production and storage costs) and those dependent on them. The prerequisites for determining a lower price of goods are the size and frequency of orders. Regular customers who buy comprehensively from one wholesaler can count on much more favorable offers.
Before placing an order for a product from a distributor, it is worth conducting an extensive market analysis. Understanding the offer of wholesalers in the country and abroad, the variety of goods and retail prices of selected products will help both in making the final decision and in negotiating with representatives of the distributor.