wholesale veg business - chennai - conditions.
wholesale business is not like cab business or retail business to deliver service or product as they book...
u need proper planning to execute deliveries profitably....
u need to understand sales of your customers and u can get their needs from that...
u need more planning to execute based on your understanding..
there are around 100 vegetables...
average sales per veg per store(local nonbranded and supermarkets ) is around 5kg/- per day
for small kiran store it is around 2kg/- per day...
average customer retail price per kg is 70/-
if a store can maintain 50 types of veg then 50 X 5 = 250kg sales per day
250X70 = 17500/-
assume average salesis15k to 20k per day for 50 types of veg
now they have problem in purchasing wholesale..
wholesale bags comes in 50kg at around Rs 10per kg.... (lorry 2rs per kg based bids)
if they buy 50kg bag, veg wil spoil by next day..
for their sales they cant store it for 10 days...
so there are small wholesalers in market...
they buy in 50kg bags and open and sell in loose for shops...
they sell at 30 per kg on average...
all lorry bids... bag sales and loose sales happens at same koyambedu market for whole chennai..
so if you buy from mini wholesales like 2 kg 5 kg then u wil be loosing that margin between bags and loose...
if you want to buy from 50kg wholesalersthen u wil be loosing on 2 rs to 10rs margin...
u can not go beyond that like bringing from farmers....
all middle man buy from farmers and bring to koyambedu bidding placeand sell as whole lorry to the winning party...
big brands have their own collecting points at headquarters near villages and they are fixing prices...
u cant grow like them...
now have to plan what kind of business u want to do...
say if you want to do only 1 veg a day delivery for wholesale then u can go to lorry bidding..
that wil save you money on multiple unloads like from lorry to store then store to auto then auto to bike for deliveries based on orders..
if u want to deliver all veg then u may need to have a store to buy in 50kg bags for those veg u got 15+ kg orders...
remaining 35kg are free for you..
u can wait and see if u get more orders...
or you can sell those remaining veg to hotels at your buy cost or even less ..
reliance sell vegetables after grading for around 0.5 per kg in chennai as they dont have hotel tie-ups...
anyway hotels dont need fresh veg...
or if you have retail veg stores then u can sell there..
but you cant manage retailstores...
u need around 7 to 10 veg stores running at a time to sell 35kg excess veg...
usually hotels buy from these retail stores after spoling..
if you have your softwares and apps ready you have to start your business fast...
dont delay thinking of losses...
losses are like your MBA degree and years of time...
but you cant study MBA for 10 years..
so you have to take avaerage steps..
not too small and not too big..
u wont make loss in same point again and again...
you wil understand that in long run...
but for anything you have to keep ur initial step...
u want to keep small step or big step depends on your investment capacity, loss capacity and time period you have to try and make conclutions on loss or profitable...
u cant start small retail veg store now and finally plan to go to direct purchasing from from farmers like pushpa movie...
they showed same age from start to end ...
you dont have that kind of mgic or time..
you are already 40...
so u have to first set your destination then start your action step...
u wil come to a conclusion weather to store or continue in 4 months...
if profitable you can set it and maintain from anywhere...
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