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Originally Posted by GrinningPlanet
But be willing to deal with picky people and sell your produce wholesale. Also, don't count on a long-term relationship with any one buyer. A friend of mine found out that the chef loved the produce but the business manager didn't like the price. Corporate grown produce was cheaper than my friend could grow at cost. Sad.
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I respectfully disagree. I have been selling exclusively to restaurants for 18 years. Many of my customers have been with me for over 10 years with several over 15 years. Chefs are extremely loyal to someone who has shown they can perform consistently. I don't ever have to look for new businesswhen one of my customers opens a new restaurant they call me. If a sous chef leaves to open his own restaurant, they call me.
I have added one new customer a month for the last 3 months.
One was a former customer who I hadn't dealt with for over 3 years becuase he left to open a new restaurant that was in a area I don't deliver to, and wasn't larege enough to make it worth my while. He opened a 150 seat (plus the bar and a 30 seat private room) ultra high end/pricy restaurant in early Nov and called me in and said "Is this big enough for you?"

His chef de cuisine had worked at a restaurant in another city where I didn't sell, he also wanted my product. In just 3 months they are a consistent $500/week cusotmer,.
Second one opened the 1st week of Nov. The chef call 3 weeks prior to opening and said he had been referred by a long time customer. I didn't get right back to him so he called again a week later saying he was referred by another customer. It is a 65 seat+bar+large patio for summer neighborhood place. It started out as 1 $70/week delivery. 4 weeks ago, they "blew up" and they now take 3 $100 deliveries every week.
Third one just opened 3 weeks ago. This is a long time customer who just opened his 4 th location. They only do $100/week now. This customer always startes out with only coffee/pastries in the morning and lunch service M-F until they get everything running smooth. Then he opens Sat&Sun for brunch, then he opens for dinner. In 2 years this will be a $300/week account.
As for "wholesale pricing" I wrote the following premise in my 1st business plan and it has never been wrong:
If the farmer growing the product that is being sold to a broker, shipped on a truck to my area, and then marked up and sold again by the local produce company can be profitable, then I can be profitable by selling direct at the same price as the local produce company.
I keep my pricing 10-25% higher than the local produce companies. I sell direct so I don't have to give a share to any middle men-their share goes to me. I am local so I don't have the transportation cost of shipping well over 1000 miles to deliver my product. If you can't make a decent living under such an arrangement, your production costs are way out of whack and you are doing somehting seriously wrong.