4. How to Buy Wholesale Grocery Products?
There are many ways to purchase wholesale grocery products, and your purchasing strategy will depend on what you sell. If the products you sell in your retail store are mostly dried, packaged, or dehydrated, you can purchase them from online suppliers.
You can easily browse through wholesale directories to determine which food category is right for you or that you want to purchase. However, make sure you have the necessary storage capacity to store these types of products.
Storage and display of perishable goods
Managing perishable products such as fresh fruits and vegetables and meats is not a simple task. Therefore, the storage and display of perishable goods are essential. This is why grocery stores or supermarkets are advised to have more refrigerated storage space.
Foods such as meat should be moved within a few days to avoid spoilage as they have a very short shelf life. On the other hand, not all fruits and vegetables should be refrigerated. A good rotation of stock from the backroom to the display area is also essential.
You should also avoid exposing fresh produce to bright light as this can cause deterioration. The lack of temperature control in the display area should also be avoided. In addition, the store manager or director should ensure that the display area is sufficiently filled with food to attract the consumer.
Strategies for Perishable Inventory
Due to the challenges of maintaining perishable foods in retail stores, perishable inventory requires attention. Therefore, there are specific inventory tracking systems that help manage and account for perishable inventory. For example, single-period inventory control and first-in, first-out (FIFO) inventory valuation are commonly used to handle perishable goods.
The single-period inventory system requires that you order only enough supply for one period. After the initial order is depleted, you do not replenish the inventory until you reassess the level of demand.
For example, if you are selling apples, and you order 1000 apples from your wholesaler and resell them over a three-week period, and they are all sold one week after the sales start, you will wait until the end of the accounting period to order additional apples. This strategy helps you limit the amount of inventory that is wasted, thereby saving you money.
By implementing an effective perishable inventory strategy, a business can avoid having to write off large amounts of obsolete inventory and boost its bottom line.
The cost of goods sold is accounted for as an expense in the income statement. Unsold inventory is valued in the balance sheet as a current asset. The FIFO method of inventory valuation assumes that the first inventory purchased is the first inventory sold. This is the best valuation method to use for perishable inventory. In addition, in times of rising inventory prices, this strategy increases net income and asset size.
When items are removed from the warehouse, it is important that older items are not forgotten and do not perish in the back room. If you want to buy products or perishables in bulk, farmers and producers should be your ideal suppliers.
Make sure you establish a good relationship with them. There are dozens of farmers’ markets that partner with wholesale suppliers across the country. Find out what farmers expect from their relationships with wholesalers. That way, you can approach them with professional questions and an attractive offer.