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  • From: Roots Farm <karen AT rootsfarm.info>
  • To: Market Farming <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] Supermarket saying take back what doesn't sell
  • Date: Sat, 16 Apr 2011 15:33:59 -0400

Willie, that cleared some fog.  Onward.  Thanks so much.  All best wishes, Karen

Roots Farm Organic Produce
Fruits, Roots, Vegetables & Herbs
Cochrane, DOMINICA
767-449-3038 (before 7 P.M.)

On Apr 15, 2011, at 10:08 PM, Willie McKemie wrote:

On Fri, Apr 15, 2011 at 07:28:29PM -0400, Roots Farm wrote:
blind?  Is this standard operating procedure?  Any thoughts?

I've been selling directly to grocery stores for 30 years or so and
what you describe has not been a problem.  When a produce manager says
that a product had a quality problem or a shelf life problem, I give
credit without question.  If that happens repeatedly, I drop that
customer.  Generally, the store owns it when the delivery is accepted
and is responsible for selling it.

You say you are charging your grocery store retail price.  My wholesale
prices are near 50% of my retail prices.  Stores need to mark up their
produce 75%-100% above their cost.  That's how they cover "shrink" (the
product that doesn't get sold, mostly from lack of demand, age, or
excessive handling).  It would make sense for your store to ask you to
cover some shrink if his profit margin is too small.  Best, encourage
him to have a good profit margin.

For many crops, I prefer to sell wholesale.  The wholesale volume can
be very high compared to my retail opportunities.  The risk is low.  It
is a real disaster when you are depending on sales from a farmers
market that gets rained out or otherwise has lower than expected sales.

--
Willie, ONWARD!  Through the fog!
http://counter.li.org Linux registered user #228836 since 1995
Debian3.1/GNU/Linux system uptime  215 days 16 hours 57 minutes
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