Posts Tagged "how to open a salvage grocery store"

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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Salvage Food Standing Orders For Stock

By on Jan 2, 2011 in Purchasing | 0 comments

I probably don’t have to tell you that securing salvage groceries ongoing can be a problem. Truckloads of salvage groceries sell out very quickly, sometimes it may seem as though you pick up the phone to call your supplier only to find out they are sold out continuously. Salvage food suppliers work with reclamation centers selling available stock, but you should know that loads are being advertised by dozens of salvage food brokers at any one time. As a store owner you must take re-ordering seriously anticipating the future needs of your customers. Without merchandise you have no sales. Many salvage food store operators will setup what is called standing orders with their suppliers. A standing order simply means you will take the next available load within a set price range on a consistent basis. You must make arrangements with your supplier and be ready to pay as loads become available. Most salvage food suppliers accept wire transfers for payment so expect to make regular trips to the bank to pay for your purchases. It is essential to maintain a good working relationship with your supplier so be sure to keep channels of communication...

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Locating Your Salvage Food Store

By on Dec 20, 2010 in Opening a Store | 0 comments

When the time comes to securing a location for your salvage food store there are several key issues to keep in mind. A location can make or break your business, so it is best to take your time when researching geographic locations, traffic and store size. Location: Consider a store front that is already located in a high traffic location, such as strip malls and close to anchor stores. An anchor store is usually defined as the largest big chain store in any one given strip mall. It is advantages to locate your store in an area where people are already shopping thereby taking advantage of the established traffic flow. Do not be afraid of large grocery chains as far as competition, while you are reselling food…you are reselling food at drastically low prices! Store Size: There are several issues when looking at store size including: retail floor merchandising space, backroom stock and processing areas and customer parking. You should not settle for cramped quarters! Look for a store front that is larger than what you will need; if you think you will need 2500 square feet to start, I recommend looking for a 3-4,000 foot store. Your operation will grow as you experience success; being locked into a lease and little wiggle room will prove to be a tremendous disadvantage to your business. Tack on at least an additional thousand square feet to what you think you will need to start, you can thank me later. Parking: This is a huge issue to consider as you want ample parking for the many shoppers who will fill the aisles of your salvage food store. If there is not enough parking for potential shoppers your business will suffer. I speak from experience as a shopper myself; if there is not enough space or the parking lot is not easily accessible I am off to the next store. Make sure you have parking for those that are handicapped and your new location is easily accessible to those with disabilities. It would be best to inspect potential locations for curbs, ramps and entrance- ways before signing a lease. I have touched on three of the most important factors when choosing a location...

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Investigating Salvage Food Suppliers

By on Dec 9, 2010 in Opening a Store | 0 comments

Stocking your salvage food store can be frustrating as supplies of banana box groceries can be few and far between. Full truckloads do not sit very long and often when you call your salvage food supplier, a load will be gone. It is best to establish a regular schedule of purchasing and build a relationship with you supplier so he knows you will take a load each week, every two weeks etc. How do you find a reputable supplier, there are so many out there. Who can you trust? Lets look at a few steps to take when investigating a new salvage food supplier Check references – When calling a new Salvage food supplier on the initial contact ask for references. Make sure you get full names and phone numbers of those who purchase ongoing and then call these individuals. Ask them about their experience buying Banana box grocery loads from this particular supplier. Topics you should ask about include: Quality of loads, time in transit (freight) and overall satisfaction concerning past transactions. Visit the warehouse – If you live relatively close, you should visit a prospective salvage food supplier’s warehouse to visually inspect loads and get a feel for how their operation is run. Check for things like cleanliness and business organization. Make sure to meet the entire staff if possible. Sometimes a visit is very telling and can give you a feel for whether or not a business is legitimate. Sometimes a supplier will ship a load of banana box pallets direct from a reclamation center; in this case you may not have access to the warehouse. Check for complaints online – Google the salvage food suppliers name and add the term complaints to your query. People who have been unhappy with a historical purchase might offer reviews of the suppliers’ service. This information could become valuable to you prior to a...

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