Buying produce directly from the shipper

Discussion in 'Experienced Truckers' Advice' started by Ames9011, Jun 17, 2009.

  1. Ames9011

    Ames9011 Bobtail Member

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    Jun 17, 2009
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    Does anyone know why these small ma and pa grocery stores, especially the asian and hispanic ones, don't have their own dedicated drivers so they can buy directly from the farms or produce warehouses? Why rely on these warehouses that probably charge an arm and a leg? Is it allowed for drivers to directly buy, say, 6 pallets of medjool dates and 18 pallets of blackberries, and then come back home to sell them? Do the shippers demand a min price limit on their produce?

    It's no secret that all the grocery stores franchises, at least the ones with over 100 stores, charge pretty high for produce. A good sale is something like 2 little plastic cartons(6oz) of red raspberries for $5. Otherwise it's $4 for a 6oz carton of red raspberries. What is the profit on these Driscoll berries? Could a small grocery store send out its own driver to buy directly? Or do they have to depend on the grocery warehouses.

    I'm a grocery truck driver by the way. I hardly know anything about the industry. :biggrin_25510: For example, why would a small corner gas station pay all this money to a grocery warehouse so that I can deliver 5 cases of eggs and 5-6 cases of misc. items via a 53 foot trailer? At $31.50 per hour(overtime) and 40 miles out of the way, I can't imagine a profit for the small corner gas station that ordered this.

    Do the grocery warehouses have that tight of a grip?
     
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  3. CURTWAYNE

    CURTWAYNE Medium Load Member

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    Man, I am with you. I drove for 6 years on my last job, doing the same thing you are. Delivering groceries. Some of the stores I have delivered to, do purchase from local farmers. But, mostly if the farmer delivers to the store.
    They get better quality produce, and decent prices. Most produce that crosses a grocery warehouse is trucked in from who knows where. And, all of the delivery fees add up to a high retail price at the store.
    But, as with most businesses, it isn't usually cost effective to hire somebody to drive a vehicle that is either owned or leased by the store, and provide benefits to the driver. It is easier to just call a supplier and say send me this, this, this, and that.
    Plus, they won't have to worry about an accident and being sued, if their driver is involved.
     
  4. Ames9011

    Ames9011 Bobtail Member

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    Jun 17, 2009
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    I was thinking that these family owned grocery stores would have one of their relatives or store clerk attend a 4-6 week course at a state funded tech school(for the tax write offs and insurance reasons) and get a CDL. Then just pay Penske or Ryder for a rental to avoid the high insurance, plates,...etc. Or, alternatively, invest in a $20,000 to $30,000 tractor, and just rent the trailer. I know there's more to it than this, and I'm oversimplifying it, but I guess this is why I am a truck driver dude, not a businessperson. Still fun to think about it, though. For instance, why couldn't one buy $12,000 worth of blueberries in cash, then try to sell them in 4-5 days at the farmers market? What is the red tape behind all of this?
     
  5. Powell-Peralta

    Powell-Peralta Road Train Member

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    Jul 17, 2007
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    Actually, alot of them do this---sort of; i used to work for one. And i've dabled in the grocery business (as a driver of course).

    They usually get an aquaintance/friend that is into trucking. Alot of them (the aquaintances/friends) can get a used or even new equipment no problem.

    They don't have to pay benefits etc. because they do tend to pay the "driver guy" pretty good as they cut out the middleman etc. Their treating this friend/relative/aquaintance as basically a separate business that basically only caters to them.

    Not really and employee but sort of like an employee.
     
  6. DoubleDear

    DoubleDear Light Load Member

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    Jan 28, 2009
    Harrisburg PA
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    Grocery warehouses are just a "Middleman". They also have to figure their cost and profit.
    If you want to do this yourself. Go right to the source. Find a Broker that will direct you to a farm. But you go through the broker. Farms don't deal with the public. Unless it's a small farm you may buy direct wholesale. That's the best way to go.

    Many years ago , we use to buy our own trailer loads of Watermelons from a farm through a Produce broker.. The more you buy, the less you pay. We were paying less than a dollar per watermelon. But you have to also figure in your added cost for fuel and expenses to resell the product.

    After you figure out your cost and profit, then you can go around to these small convience stores and become a distributor for them. Most of them are happy to have a distributor. I know, I've done it myself and Loved it!
    But everytime,,, the profits were to buy more products. Many times the stores would ask if you can get this product for them.
     
  7. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    Rancho Mirage, Ca.
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    Years ago, I worked P/T for a smaller grocery store. 2 days a week, I went to a produce distributor and picked up the order in a straight truck (24') that was owned by the store. Anyone could buy from the distributor. I have seen smaller mom and pops stores unloading produce from a SUV or dually P/U truck. The smaller orders that get delivered on a 53' trailer to a 'c' store are just part of the business cycle. They could be ordering 12 pallets or 6 cases. That truck rolls out every day loaded with items for big and small orders.:biggrin_25518:
     
  8. Garager

    Garager Light Load Member

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    Jun 5, 2009
    MN
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    Contract perhaps.

    We will buy this much or all of it, if you only sell your product to us. If you sell your produce to others without our knowledge, we will not buy from you.

    Something like that maybe, just guessing.....
     
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