If you own or manage a discount store, buy food inventory to resell to others, or are otherwise engaged in the food surplus resale business, this article is for you. It focuses on how to find food surplus deals, including how to buy surplus inventory and what you need to know to negotiate the lowest prices when you go to buy extra inventory.
Unique Challenges of Purchasing Overstock Food Inventory
Overstock inventory — whether it consists of durable goods like appliances, jewelry, and vehicles or nondurable goods like food, clothing, and fuel — can be a cash cow for savvy resellers when purchased at the lowest prices. While it’s important to understand any extra inventory’s value (and resale value), some unique challenges come with buying food surplus items.
Things to plan for include:
- Refrigeration needs. If the food surplus items you’re buying are perishable, you’ll need to make sure that you have whatever storage is required to keep perishables fresh for as long as possible. Protecting your investment could require a particular type of freezer or refrigerator. It’s essential to plan ahead so you don’t waste your money buying food for resale that will spoil before you can turn it over.
- Sell by date expiration. With non-perishable food surplus items, you’re going to have to contend with sell-by dates. Ideally, Items that are close to their expiration date need to be turned over quickly, or you could lose the ability to include them on your shelves. And keep in mind that you’ll incur the expense of disposing of any items that you can no longer sell. Bearing this in mind, a company like Marvell Foods, with its national network of buyers and sellers, can help you recoup your investment in rapidly depreciating inventory.
- Limited distribution channels. If you’re looking to buy extra inventory for resale, you need to consider who your customers are. Often, food surplus resellers target dollar stores, independent discount grocery stores, flea markets, convenience stores, and even vending machine owners/operators. Because overstock inventory might include close-coded or even expired dates, the universe of purchasers is going to be limited. A company like Marvell Foods specializes in moving these types of goods.
How to Buy Surplus Inventory
Savvy surplus inventory sourcing professionals depend on relationships and food surplus sales transactions best practices when negotiating deals. It’s important to make sure that you know your seller, understand all of the terms of the sales, and know where the goods are located before consummating any sales contract. Be cognizant of logistics. Where is the product, is it frozen or shelf stable? If frozen, freezer trucks will be necessary for transport. Issues such as these must be considered and factored into the deal.
Know Your Seller
Not every seller of overstock inventory is reputable. You want to make sure you know the seller’s reputation and where their inventory came from. It’s easy to unknowingly enter into a deal to buy lots of substandard or expired items. The best way to avoid getting scammed is to only work with reputable vendors. Do your due diligence. Check the internet for a company’s history and track record.
Understand the Sales Terms
Is the seller guaranteeing 100% resalable items? Does the price take into account a certain percentage of shrinkage? Does the manifest accompanying the shipment specify quantity, quality, and perishability? Will the goods be packaged and ready for resale, or will you have to spend time and money unpacking and repacking to ready them for wholesale or retail customers? You need to know the answers to all of the questions prior to making a purchase if your intention is to resell the product(s)/good(s).
Consider Location and Shipping Costs
The farther away the goods you’re purchasing are from your receiving center, the more it will cost you in time and transportation, as well as potential inventory loss. When it comes to buying and selling food surplus lots, closer is usually better.
Count on Experts to Find the Overstock Inventory You Need
If you’re interested in buying food surplus inventory, working with an experienced trading company and/or food broker that specializes in unsold and overstocked food items is always a smart move. Marvell Foods has been successfully brokering food surplus inventory sales between a wide array of buyers and sellers across the country for more than thirty years.
To learn more, contact us or give us a call at 561-213-2289.