Some useless facts that might be considered when choosing a food company/rep…
of course knowledge is #1 as well as service, but newly hired reps are generally given the ‘best’ prices to quote, as it is their business to develop new customers & new relationships…hence the ‘low-ball’ price points…many of these reps are on a decent salary and are not required to show a certain % profit on the route…
But after a year or so on the route, many salespersons will need to show a “food cost” on their route of 85% or less… so many of the price points begin to change…
My volume customers always got a better price than those that only ordered a minimum drop every so often…just as we reward our best customers with special deals, they salesperson will work more with someone that gives them more business…nearly gone are the days of comparing one vendor to another…both parties loose…your time & the salespersons time have value…the more time/purchases you spend together generally the better price you’ll get…
Beef, in particular, only is marked up a fraction (3%) when compared to say cheese, flour, sugar etc., because everyone is fighting for the ‘center-of-the-plate’ business.
With many pizza shops, cheese is the price stickler but are few additional items in which to make the stop profitable…
I believe an old standard cost figure was $75/stop (for gas/depreciation/distribution/salaries etc.)…so figure a $500 drop net the distributor only $75 in gross profit…now they gotta cover equipment repairs/purchases, training etc…
Just like traditional grocery stores (1-3% profit), they make their money on big volume and may loose money on small accounts…
Grocery stores get $$$ for product ‘slotting’ fees and the SYSCO’s of the world are now tapping in on that as well…may our friend @ Burke’s can shed additional light from that perspective. That is why you might not see your fav product from a particular distributor…
Hope I didn’t bore anyone…