It’s hard being a small or independent grocer in today’s modern retail world, where big box stores have a significant advantage in buying power, particularly amidst the continuing supply chain challenges. This is precisely why many small grocers, from mom-and-pop markets to international and specialty grocery stores, have partnered with a closeout food broker to help not only move rapidly depreciating food products due to “close-coded-dating, and alternatively, and equally as important, to diversify their inventory in this challenging environment.
Discount food brokers, food liquidators and even food traders like Marvell Foods make it their business to deal in surplus, discontinued, or overstocked food products. With unparalleled expertise in this niche, but deep secondary food market has proven to be a surprising but significant asset to food cookers, food packers, food distributors, as well as small and large wholesale and retail food stores looking to diversify their offerings and attract more customers.
In this blog, we’ll examine what it means to partner with a closeout food broker and highlight the benefits to small grocers who want to keep their shelves stocked with unique and varied products in the face of uncertain and unreliable supply chain partners.
What Are Food Closeout Liquidators?
First, what exactly are food closeout liquidators (also called closeout food brokers)?
Think of it this way: a closeout food broker is basically a matchmaker between food manufacturers and distributors who have excess inventory and retailers who need and want those products at an affordable price.
For the most part, food brokers deal in products that are either nearing their expiration date, discontinued items, or overstocked goods. The best part is that these food closeouts come at a fraction of the usual cost, which makes it easier for small grocers to stock a wide variety of food at remarkably discounted food costs (this helps improve margins and increase the bottom line).
So Why Partner with Closeout Food Liquidators?
Cost-Effective Inventory Diversification
- Affordable Prices: Plain and simple, closeout food liquidators can offer products at lower prices. This enables small or specialty grocers, in particular, to purchase a broader range of items without spending too much.
- Better Margins: Since the products cost less, grocers can enjoy higher profit margins while still selling the closeout food at competitive prices.
Handle Supply Chain Hiccups
- Alternative Supply Source: It’s a common problem: What do you do when your traditional supplier runs low on stock? Well, closeout food brokers can step in with a bevy of alternative options, helping grocers keep their shelves stocked.
- Quick Delivery: Brokers often have products ready to go, meaning much faster delivery times compared to regular suppliers.
Unique Product Access
- Special Finds: Certain essential products can be difficult to find for specialty or international grocers. Food liquidators provide an outlet for these grocers to obtain unique or hard-to-find products, allowing them to better retain and attract customers looking for something a little different.
- Seasonal and Limited-Time Deals: Regarding specialty items, food closeout brokers can utilize their vast network of connections to purchase seasonal or promo products, perfect for small grocers looking to offer exciting limited-time deals.
Flexible Inventory Management
- Smaller Orders: Unlike traditional food suppliers, food liquidators don’t typically require big orders, which allows small grocers to try new products without committing to large quantities. This preserves capital while experimenting with food product diversity and the ability to cater to various consumer tastes – depending upon your store’s location.
- Lower Risk: Because small or specialty grocers don’t have to make as large an investment in inventory, they assume less financial risk if a new product doesn’t sell as expected.
4 Tips for Small Grocers on Choosing the Right Food Broker
- Research Brokers: Reputation is key. Look for reputable closeout food brokers with good reviews and a strong track record of experience.
- Start Small: Dip a toe into the water. Start by placing a small order to test the waters and see how customers react to the closeout products.
- Train Your Team: Education is essential. Ensure your staff knows the closeout products and how to handle and display them correctly.
- Promote Smartly: Utilize in-store promotions and marketing to highlight closeout products’ unique and cost-effective nature.
As the supply chain continues to be a problem, with no real long-term solutions in sight, closeout food brokers, food liquidators, and discount food brokers offer a practical solution for small grocers aiming to diversify their inventory. By taking advantage of cost-effective purchasing, unique product access, and flexible inventory management, small and specialty grocers can not only survive supply chain challenges but perhaps even learn new and better ways to a) purchase new food products at deeply discounted prices and b) have a more extensive variety of food products to satisfy existing customers and even attract new ones.
Marvell Foods has over 30 years of experience in the food industry and has earned a reputation as one of the leading food broker companies in North America. The President of Marvell Foods, Marilyn Raybin, has even been featured by MSNBC and Forbes Magazine’s “50 of 50” Annual Survey of the nation’s leading female entrepreneurs. To find out how Marvell Foods can help your small or specialty grocery store succeed despite today’s supply chain issues, contact us today. Marilyn Raybin: 561-213-2289 | [email protected] | MarvellFoods.com