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Negotiation Help - Page 2

post #16 of 22
Quote:
Originally Posted by jason_kraft View Post

That's been my experience at BakeMark, Restaurant Depot, and two independent Cash & Carry stores in San Jose.

Can you share your own experience of different price points at wholesale suppliers?

I have dealt with Sysco, Bakemark, Dawn, and FSA.

I have shopped at Cash & Carry, etc. but they are also open to the public and aren't what I would really call "wholesalers" although they do allow you to purchase some items tax-free with the proper business documentation. Cash & Carry, et al. are no different in my opinion than Costco and not what I (and I believe some others) were referring to. Most bigger businesses buy in bulk from larger suppliers and don't run to the local Cash & Carry when they need ingredients.

Also, suppliers DO give you price breaks and offer different prices to different customers based on the contracts that are signed. I have entered into contracts where I was guaranteed certain pricing if I ordered minimum quantities.

A smaller scale business such as you used to operate probably weren't offered the same deals and didn't have the need to buy in higher quantities since your needs were small. I could see why shopping at your local Cash & Carry would have made sense for you.

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post #17 of 22
Quote:
Originally Posted by jason_kraft View Post

The wholesale bakery supplier I dealt with (BakeMark) had no problem with a cash & carry pickup as long as it was arranged in advance. They have many distribution centers across the US. Wholesale prices are also available at restaurant supply stores like Restaurant Depot.

 

Many areas of the country are not located near distribution centers or cash & carry type stores. I no longer own a retail business and I have no access to purchasing my favorite ingredients. Just sayin...

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post #18 of 22
Quote:
Originally Posted by BrandisBaked View Post

Also, suppliers DO give you price breaks and offer different prices to different customers based on the contracts that are signed. I have entered into contracts where I was guaranteed certain pricing if I ordered minimum quantities.

Can you give some examples of the discounts offered for different minimum quantities? If it is significant enough to make a difference and OP's boss can hit the required quantities then it might indeed be worth it to strike up a discussion.

Of course, I'm not sure if the wholesale suppliers would be happy if they discover that you are ordering product for another company under your account. The alternative would be OP purchasing supplies directly from OP's boss, assuming the bakery wants to get into the reselling business (if the contract even allows resale of the ingredients themselves).

The main reason behind shopping at Cash & Carry was price, not tax-exempt status. In some cases they had lower prices for cases of ingredients than the wholesale suppliers.
post #19 of 22
Quote:
Originally Posted by MimiFix View Post

Many areas of the country are not located near distribution centers or cash & carry type stores. I no longer own a retail business and I have no access to purchasing my favorite ingredients. Just sayin...

That's true. There are a few options for buying wholesale quantities online but depending on the product shipping could be an issue, in this situation piggybacking on another business's supply chain (if allowed) becomes a more desirable option.
post #20 of 22
Quote:
Originally Posted by jason_kraft View Post

Can you give some examples of the discounts offered for different minimum quantities? If it is significant enough to make a difference and OP's boss can hit the required quantities then it might indeed be worth it to strike up a discussion.

No, I can't give specifics as my prices and contracts are confidential per the terms of the contract. However, it is a significant savings, especially when certain commodities suddenly jump in price.

I also don't need to provide confidential information in order to answer the OP's question.
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post #21 of 22
Quote:
Originally Posted by BrandisBaked View Post

No, I can't give specifics as my prices and contracts are confidential per the terms of the contract. However, it is a significant savings, especially when certain commodities suddenly jump in price.

General ballpark figures would be fine...for example, does the price break for butter happen at 250# or 2500#?

If you are not comfortable sharing this information then don't worry about it, I'm just curious. icon_smile.gif
post #22 of 22
It's not necessary to answer that, as it is only relevant to me. OP's prices would vary as would any other baker here.

What I have negotiated with my suppliers is privileged information. OP (or anyone else here) should know that prices are often negotiable and you can get price breaks if you ask - or even insist. It helps in negotiating if you have another big supplier in the area.
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