Posts Tagged "banana box groceries"

Salvage Food Cost Breakdown

By on Mar 23, 2015 in Purchasing | 0 comments

Are you looking for wholesale salvage food? sometimes referred to as banana box groceries, large big box grocery stores liquidate food items for several reasons including nearing expiration, expired, nearing freshness dating, or simply because an item is not selling well. This stock can be purchased by the pallet containing banana boxes for a fraction of original wholesale cost. Salvage food still retains value for consumers because even products nearing their freshness dating still taste good, and are safe for consumption. In a consumers mind, the best benefit of purchasing salvage food is cost. Because salvage food can be purchased for pennies on the dollar, resellers can pass the tremendous savings on to consumers. Scratch ‘n dent canned outlet stores buy truckloads of this salvage food from any number of distribution centers and grocery food brokers across the country. Pricing for salvage food varies based upon store origination, but expect to pay about $13-$15 per banana box. Pallets typically contain 24 banana boxes of food, and a double-stacked 53 foot trailer will yield 1152 banana boxes. With some simple math applied, a full truckload will have an average cost of about $17,000.00. A double-stacked half trailer will have an average cost of about $9,000.00. Are you thinking about starting a salvage food grocery store in your neighborhood? Salvage food retailing can be very lucrative because small resellers can now compete with the large retail chain grocery stores, selling the food they...

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Salvage Food Reader Question

By on Mar 20, 2011 in Questions | 0 comments

We have a question today from a blog reader who purchased their first load of salvage food; his name is Antonio, and he writes: “Hello, I have been reading your blog for sometime now and I have a question about our first 12 pallets of salvage food we bought last week. Let me give you a little background information about our business…My wife has owned a trendy little clothing boutique here in Vero Beach for sometime and we had the opportunity to lease the adjacent store front this month with the intent to start a small salvage food store. The store is approximately 1200 square feet and we feel it will fit right in within others stores, here at the plaza. It was my idea to start this discount food store after careful research of the salvage food industry. Here is my question: we just bought our first load of inventory, which was twelve pallets and I must say it has taken a lot of time to sort and price the grocery items…how do we know when to reorder? Should we get started on our next purchase or wait a week or two? Answer: Congratulations is in order for your new store, and I wish you and your wife all the success hard work brings! It is not possible to give you a definitive answer as far as when to reorder as it will depend on several factors including: Inventory Mix – If your first twelve pallets of salvage food arrived with a good product mix (assortment of various staple grocery items) your opening inventory should be fine. But, if the first load was not very assorted you might consider a quick reorder to even out your stores’ inventory. Store Traffic – Take into consideration how many customers you have on a daily basis to decide when to reorder your next load of salvage food. Obviously, if your store is constantly experience heavy traffic, stock levels will give you a clear indication of when it is time to reorder. I would say, on average, a store with moderate traffic will reorder a new load about every 12-15...

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Open a Salvage Food Store With One Load

By on Jan 9, 2011 in Opening a Store | 2 comments

I was reviewing available loads of salvage food and the question came up from one of our blog readers: Is it possible to start a salvage food grocery store with a single load of product? The short answer is yes, it is certainly possible depending on the size of the load you purchase and its mixture of merchandise. Most loads of banana box salvage food come un-manifested, meaning you have no clue as to the pallet or truckloads’ contents. With uncertainty, you should opt for larger loads to get the best merchandise mix. Take for example a load available today from the supplier GDC Commodities Exchange, here in California. The load they are offering consists of 1152 banana boxes filled with salvage food for a total price of $15,500.00. They are advertising the load as a mixture of salvage food, HBA (health and beauty aids), Pet Food and general merchandise. You could open a store with this load, but there are some issues to take into consideration… The shear size of this load will take a lot of processing room. 48 pallets is a huge undertaking. You will need to sort and categorize the load before merchandising in your store. I am always advocating plenty of back-store processing room for salvage food stores. We are talking a single 53 foot truck filled with pallets! If you can properly categorize the load once delivered, a shipment this size can be used to open and restock within 1-2 weeks. You will need a forklift and pallet jack to process this load. If delivered in a 53 foot truck, most do not come with a...

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Visiting Salvage Food Stores

By on Dec 30, 2010 in Opening a Store | 0 comments

Over the holidays my family visited relatives down in the Bay Area, which has been a tradition for us for many years. I took the opportunity before Christmas to visit a couple of Salvage food grocery stores to check out their operations. I like to assume I am a local customer and try to find out what I like and don’t like about a particular store. The first store was on a busy street corner and to me looked to be about 2,000 square feet in size. There was plenty of parking when I pulled into the parking lot, so I turned the car off and strolled inside. There were plenty of shoppers filling shopping carts in this store aptly named “Dented Discounts”. While strolling through the store I noticed a diverse selection of dry and canned goods. The pricing was really good and I could tell this store had a good source of inventory. It is critical to have good salvage grocery suppliers. This first store I visited was clean and the aisles were well stocked. I was impressed with their operation and could tell the overall business was strong. The second store I visited was a different experience. It was a small cramped store with grocery products that appeared to have spent a great deal of time on the shelves, unsold. The overall store had a bad odor, which immediately gave the impression of spoiled food. The appearance of the store and the overall atmosphere was more than likely the cause of slumping sales. Salvage food already has this connotation of old and expired in many peoples minds and when customers experience a lack of cleanliness, they will avoid shopping all together. After visiting a couple of stores I finished off my holiday visit and returned home a few days later. I would encourage you to take some time and visit salvage food stores in your area if you are thinking of opening your own business. There is a lot of information you can learn from your...

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Interview with a Salvage Food Retailer

By on Dec 6, 2010 in Opening a Store | 0 comments

I spent some time with a friend who opened a salvage grocery store down in Sacramento, CA asking a few informative questions. I think her answers are not only revealing, but will inspire some of you who are thinking about getting into this business. Take a listen: When did you open your store and how is business for you in the current economy? Our store opened the doors back on July 15th 2005. Back then we felt as though we were venturing into uncharted territory as there was no definitive, set way to operate a store like this. There was no book, guide or template we could use to model our business after. It was scary to say the least! We learned the hard way, day by day in the trenches. Looking back, I am very grateful we have stayed the course and adapted to meet our core customers need for buying groceries at rock-bottom pricing. How many employees do you have? Well this number changes frequently as with most retail operations, but on a regular basis we employ a staff of 3 full time employees and 5 part-time workers. Besides the help it is my husband and I filling in the gaps. We work all the time and find it hard to stay far away from the store. We need a staff because we are open 7 day per week with extended hours into the evening to accommodate those who work normal 8-5 work schedules. Looking back what has been the biggest mistake you have made to date? The biggest mistake…wow, let me take a moment as we have experienced so many blunders in our evolution. I would have to say the biggest mistake has been not investigating food suppliers prior to buying truckloads of inventory. If that has not been the biggest mistake it certainly has been the biggest financial mistake we made! You see we lost about $9k on a truckload of of pure unsellable merchandise fro ma broker who is no longer in business. My heart dropped when we started unloading that purchase. We were able to resell about 30% of the truckload and the other 70% went into the garbage as most of the...

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