Posts Tagged "how to open a salavge store"

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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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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Research Before Starting a Salvage Food Store

By on Nov 24, 2010 in Opening a Store | 0 comments

The idea of opening a scratch and dent can store may sound appealing, but you should take the time needed to research your local market as far as competition. Larger cities boasting a population over 100,000 may be a tough market for your venture into the salvage food business as competition could be a major factor. Obviously, the idea to resell discounted food is unique and you probably have no intent on competing with the large chain grocery stores, but how many other discount food stores are in your city? Smaller cities and towns allow the small entrepreneur the opportunity to corner the market and enjoy ongoing business providing products, at great pricing, that cannot be found anywhere else. How to research your local retail food market Make a list of the grocery stores in your area and then add all of the discount food stores within your city. Your direct competition will be those grocery stores that offer discounted or closeout food. Once you have a list together, visit each store a few times at different times of the day to observe the volume of shoppers. Take not of pricing strategies and merchandise ideas employed by these stores. Keep a close eye on parking availability, store navigation and store hours of operation. Researching competition will give you a clear picture as to whether or not you can offer better pricing, service, facilities (including parking, store navigation) and convenience. A store can offer lower pricing than others, but if people cannot easily access a location….business will suffer. Customers want the entire experience – good deals, clean atmosphere and shopping convenience. With the proper research ask yourself a few questions: Can I secure a location that is easily accessible and not hidden on some backstreet? Can I offer better service than current stores within a specified radius of my city? How can my store stand out from the others? Based upon competition, can I offer lower pricing? What can I do or offer that will make people want to shop at my store? Proper planning and organizing prior to starting a  business will ensure long lasting success. Today, more than ever you must offer more than lower pricing when you...

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Opening a Salvage Food Store In Your Town

Opening a Salvage Food Store In Your Town

By on Sep 4, 2010 in Opening a Store | 0 comments

Ride the wave of the economy by appealing to those who are actively searching for ways to save money. Everyone has to eat to sustain life, correct? Resell a product that is in demand right now: discounted salvage groceries. It does not take a huge amount of money to open a salvage food grocery store, in fact a 2-3,000 square foot store can be started for about $25-$30,000.00. Here are some initial steps to take to get a salvage food store stated in your city: Research – Pickup the local phone book and see what your competition looks like. Visit other discount food stores and see how they operate. Be sure to check their stores hours, selection and quality. If there are no other salvage grocery stores in your town, maybe you could corner the market! Find banana box food distributors – What does this mean? Well, salvage food is packed into banana boxes and resold on pallets! Search online for the terms: salvage food brokers, salvage food distributors, Salvage food wholesalers, banana box food etc. Get a list going of suppliers closest to you city. Call them up to check pricing and load availability. Find a location – Look for a vacant store that offers plenty of room for your customers to freely maneuver shopping carts and provides enough backroom space to process incoming shipments of food. It is also important to have ample parking and being on a busy corner helps for...

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