Wholesale distributors of fresh produce play an integral role in the food Industry by buying, collecting, and transporting large volumes of food and allocating them to customers. Distributors generally sell to a one or more of these groups:
- Independent or chain restaurant groups
- Institutions such as hospitals, schools, and universities
- Grocery stores or retailers
- Commercial cafeterias
Advantages of Working through a Distributor
Fresh produce distributors are the intermediary footstep in the supply chain between farmers and the consumers, making them a valuable gateway for producers or farmers to reach market opportunities and many more customers otherwise not as efficient. Selling your product through a produce distributor NYC offers a whole new range of benefits:
- You can access various markets and increase your brand awareness and sales figures.
- You can sell bulk amounts of product a lot more efficiently as opposed to making direct sales to consumers.
- You can save on resources and time spent having to do marketing campaigns directly to consumers and instead utilize more time on production.
- Key considerations for making use of a distributor
Even though the advantages are unquestionable when working with a distributor, certain requirements and challenges are quite different from direct marketing by yourself.
On-site operations, marketing, food safety certifications, product packaging, logistics, and pricing are all noteworthy factors that need to be carefully contemplated for you to have a successful relationship with your preferred distributor.
The following tips can provide insight to producers and farmers who are deliberating whetherthey should be selling to distributors. This useful information can assist owners of medium and small-sized farms who have not sold their produce to a distributor previously.
How to Determine Whether a Distribution Is A Right Choice For You And Your Business:
As a farmer who is trying to expand your business and would like to continue with working through a distributor, think about the following factors and how they relate to your operation to ensure that this option is the best one for you to pursue.
- Determining your end goal is for working side by side with a food distributor and how it fits in with your current and long-term business plan.
- Deciding what your target market is by working through the distributor and have you already got an existing customer base.
- Choosing on which products you’ll be selling through the distributor, the time of year they are available and if you’ll be able to have a consistent supply available throughout the season.
- Looking at your production capacity currently and if you’ll be able to expand with a rise in demand.
- Looking at your current sales figures per week and if your existing customers will be affected if you start working through the distributor. If you’re planning on selling to more than one, will you have enough product available?
- Strategizing on what your desired target sales volume is that you would like to achieve through working with the distributor.
- Deciding on your transport options for getting the product to them.