We have used several food suppliers over the past 13 years. Usually every couple of years we check someone and their prices and find out we are getting ripped off. The supplier comes back and works most pricing down. But we have ended up with 3 suppliers.
When we opened our 2nd store we went through all kinds of issues and decided it was time for them to play our game. We told all 3 suppliers they could email prices each week and we will decide who to order from. They all actually do it. It is very time consuming to save a few pennies and place all the orders and pay bills.
The original supplier has come with an offer. 6% over their cost if we sign a contract and they become our only supplier.
I don’t have any idea what % we pay now…probably high on some things and low on others…Wondering what you all think…cuz it seems like a good deal to us…we just have a hard time trusting food suppliers.
Any input would be appreciated.
How will you know what their cost price is? They will lower everything for you and inch it back up after time. I Would stick with the email from them, this way you can watch if pricing is inline.
6% over cost is a great deal. Most sales reps try to maintain 12-14% across all accounts. You still need to be careful with what is truly their cost. If they send a truck across the state to pick up from a manufacturer how much shipping cost is added to that truck, and to your items in particular. Also, this setup takes away all incentive for the distributor to work the manufacturer for the best prices. They will profit more by selling you a $58(their cost) case of pepperoni than they do if that same case costs the $52.
I would actually counter their offer with 6% over everything except cheese. Set up a price over block market for cheese. Unless you use a super premium brand, you can probably get this as low as 17-19 cents for blocks, 22-25 cents for fresh diced or shredded, or 15-17 cents for QLC frozen diced or shredded.
Alot of our deals are struck directly between us and the manufacturer, so we know exactly what the price is to our supplier. Cost increases get relayed to us straight from the manufacturer.
along these lines, is $57.69 for a case of 6 #10 cans of mushrooms, pieces and stems, nothing fancy, about the market price…seems high and I am just learning how to compare…
paying $2.66 this week for whole milk diced mozzarella, that seems about right to me, with block prices around $1.85 lately
mushrooms though !?!
Case #10 Mushrooms Pieces and stems $45
thanks, ROB T, that’s a start.
anybody out there pay as much as me, $58 ?
all vendors have several “cost basis” prices…you’ll still need 2 compare prices quarterly…yes, prices go up & rarely go down…I sold food b4…we needed to maintain a 15-18% food cost, so I’d get higher prices where I could, but low-balled prices when needed…best bet is to be loyal 2 one supplier, but check…they are in business too & have to make %'s as well…
Sorry, I use only fresh sliced. I paid 15.37 for 10# yesterday. A little high for my preference, but haven’t found a good alternative yet.
Lovely fresh whole mushrooms - clean, and no waste to speak of, $20.50/10 lbs.