Jump to content

Best practices for online food purchases


cwb

Recommended Posts

I'm researching products for my machine and am curious what advice you guys have for sourcing products online.

I'm going to be starting out with a single snack machine and am looking for creative ways to acquire products in variety packs or that have long shelf lives.

For someone new to the game, what are some things to watch out for when buying online? Any recommended websites? Specific buying strategies? Tips and tricks? Dire warnings?

What are the pros and cons of the following options:

  1. http://shop.clifbar.com/Peanut-Lovers-Variety-12Pack/p/CLIF-VPPLVP
    $19.08 + $6.95 Shipping ($26.03 Total) / 12 Pack = $2.17 ea 
  2. https://www.amazon.com/Clif-Bar-Variety-Chocolate-2-4-Ounce/dp/B000UXNYPU/ 
    $27.55 / 24 Pack = $1.15 ea 
  3. https://www.boxed.com/product/833/clif-energy-bar-24-bars-chocolate-crunchy-pb/
    $18.99 / 24 Pack = $0.79 ea
  4. http://www.ebay.com/itm/HUGE-LOT-OF-48-VARIETY-CLIF-BARS-Expires-2018-FREE-SHIPPING-ORGANIC-/252976155974
    $22.50 / Lot of 48 = $.047 ea
Link to comment
Share on other sites

Buy a Sam's Club business card. Always get the business card, cost is the same and it allows you to shop early. If it's not in the store you can have it shipped to you or the store, often with no shipping fee. That way if it comes crushed or out of date, you have a recourse to return it. Same with walmart Try not to diversify too much until you see what's sells. If you only have one snack machine, buy at Walmart or discount grocery stores, where you can buy smaller quantities. The unit cost is higher, but it cuts down on stales. Clif bars are available all over, no need to buy online. It's always better to see and touch what you're buying rather than hoping it's not damaged. Good luck, have fun.

Sent from my SAMSUNG-SM-G900A using Tapatalk

Link to comment
Share on other sites

I have bought a lot of things online, but not product for resale.  Unknown sources, unreliable expiration dates, and uncertain reordering even if you get a good price.  You need to look for your local wholesales and distributors.  Sams Club is almost everywhere (for better or worse) and their prices are hard to beat on the items they carry.  Depending on your area, Vistar is an option.  What part of the country are you in?  Maybe someone here can suggest suppliers near you.

Link to comment
Share on other sites

15 minutes ago, Corvus Corax said:

if it comes crushed or out of date, you have a recourse to return it.

Ebay always tends to side with the buyer so I wouldn't worry too much about buying from there, although if an item was damaged and I needed it ASAP that could be a problem due to time constraints with shipping.

 

16 minutes ago, Southeast Treats said:

Unknown sources, unreliable expiration dates, and uncertain reordering even if you get a good price. 

Obviously for someone with a dozen or more machines to restock, you're going to want a reliable and consistent supply of products but for a scrappy entrepreneur with one measly snack machine, it seems like devoting extra time toward finding 'deals' would be a worthwhile exercise. I'd be most concerned about the expiration dates. I've found plenty of food stuff lots with >2-month expiry dates which I'd stay away from. There are a few listings out there that neglect to mention the dates, and of course I'd have to get a confirmation on those before buying. Unknown sources may also be an issue, but with reputation-systems / seller-reviews it's not too difficult to separate the wheat from the chaff. 

I'm going to do some reconnaissance work this weekend at the local stores to compare prices. There are lots of different options in my area, including Sams. --Never even heard of Vistar though!

Link to comment
Share on other sites

To give you a basis for comparison, my prices for Clif bars at Vistar for the 2.4 oz bars would be 1.224 each; the 1.76 oz bars are 1.53 (premium items?? I don't know).  Max shelf life (from the manufacturer) would be 330 days. 

Link to comment
Share on other sites

To give you a basis for comparison, my prices for Clif bars at Vistar for the 2.4 oz bars would be 1.224 each; the 1.76 oz bars are 1.53 (premium items?? I don't know).  Max shelf life (from the manufacturer) would be 330 days. 


Looks like the Clif bars at Sam's club are $0.79 ea. when you buy a 24 unit variety pack but the expiry is only 4 months out.. Still seems like a good deal though..

By the way, how much mark up do you add? Curious what your product prices are.




Sent from my VS987 using Tapatalk

Link to comment
Share on other sites

I try to keep all snacks under $2. The only thing I have more is monster's for $2.50. My theory is a drink and snack for under $3. If I had a gym or yoga studio I might throw in some Clif bars. If I got them for $.80 I would sell for $1.50. Most of my accounts are blue collar and they want fat, sugar, and caffeine.

Sent from my SAMSUNG-SM-G900A using Tapatalk

Link to comment
Share on other sites

The general goal is to keep your cost of goods sold as close to 50% as possible, so the less expensive items are doubled plus tax.  Like Chris said, the more expensive items can't do that.  If I was pricing a .79 cost item I would probably be at 1.50 (that includes sales tax in vending).  You need to comparison shop your items to keep prices competitive.  I look at C-Store pricing as my mark to meet or beat....

Link to comment
Share on other sites

50 minutes ago, Corvus Corax said:

I'm lucky to not pay sales tax, but I had to form an llc and fill out some paperwork to do it. Mostly for Sam's, Walmart, and Costco.

Sent from my SAMSUNG-SM-G900A using Tapatalk
 

:huh: Unless you live in a state with some weird sales tax law or no sales tax for vending, you have to pay sales tax eventually. 

Link to comment
Share on other sites

Corvus, are you referring to tax exempt for resale?  When you buy something you don't pay sales tax but you pay sales tax quarterly/annually on what you sell from the machines?

Link to comment
Share on other sites

As you shouldn't... it isn't technically part of the COGS for a retail business.  You made it sound like you pay no sales tax due to the exemption and that will lead people to believe that a vending company doesn't have to pay sales tax.  The truth is, you "collect" sales tax as part of the sale and pay it to your state or local municipality.  I know of a company where the owner lost the business AND much of his personal assets because he had not been paying sales taxes.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...