Rising costs and limited offerings are challenging not only to the consumer but also to the business owner. Business owners are faced with increased cost of goods, and new increased order minimums, both of which are driving them to shop at big box membership stores and online suppliers. But is there really savings? Time is money, not to mention the fuel it takes to drive to pick up the product. Then, is the brand of the product you are looking for available, or are you forced to purchase a sub-par ingredient or supply item? Are you turned off by large distributors promising one price and your invoice reflects a higher price? It is time for you to re-evaluate your vendors and purchasing habits to maximize your profit margin.  The following are valuable tips:

• Create a Cost Comparison Sheet with all your suppliers/vendors that provide ingredients and supplies (don’t forget packaging) (and brands) to produce your products.
• Add a column with an estimated monthly use forecast based on the prior year’s usage. If you are a new business, then estimate the products you will sell monthly.
• Add a line item “Travel Time” and a line item “Fuel Cost for Travel” and shipping.
• Add a worksheet tab with a list of your products including how it is packaged with price and monthly sales in item numbers and sales amount totals.

The next step is to evaluate your costs and product sales. Are you making a profit? If not, then it is time to research ways to be more cost-effective. Are you able to work with your local distributor to get close to big-box pricing? Consider placing a special order for bulk products to bring the cost of goods down. Ask for a price comparison for like brands. Most distributors cannot match pricing on private label products and commodity items due to contract pricing with national big box chains. However, they can get close. Many distributors offer free delivery with low minimum orders and free will-call pick-up. Make your distributor work with you on costing and a delivery schedule to free you up for production. Then you can concentrate on sales and profit.

The second part of the equation is satisfying the consumer, which leads to profitable sales. Here are tips for being flexible in this economic state:

• Consider small portion sizes at lower costs for the budget-minded consumer.
• Ease of ordering for the consumer with limited time. Do you have your menu online or take phone/online orders?
• Offer ready-to-finish products or finished frozen products, liquid eggs, cookies, and croissants that save time on labor and materials.
• Are you spending too much on packaging? Is your packaging environmentally friendly?

One other important element is identifying operation and logistics by identifying profitable hours of operation and scheduled labor.

• Look at your demographics and chart your daily sales with time/day. Google Maps is helpful to identifying the busy times of a business and neighboring businesses, as they show a time chart. This will give you a snapshot of busy times at area businesses. Once you have identified busy days/times/months, then you can plan your labor.
• What are the responsibilities and expectations of your labor? Having clear-cut instructions and expectations with a commitment from your employees is very important, along with proper training. The common complaint in most industries is that there is a workforce deficit of committed workers. However, a trained and valued employee is likely to be more committed than one who is not being engaged. Education, training, and a sense of value are ingredients to growing a team.

How can Buchmann Bakery & Restaurant Supply Distributor assist in your business? We are motivated to help you with identifying the goods you need at a comparable and competitive price. Our order minimums are lower than most distributors, and we are transparent when it comes to pricing and invoicing. Our team of professionals, including our customer service representatives, sales team, delivery drivers, and purchasing staff, are committed to providing the best possible service.

We hope the above tips are helpful. Follow our social media posts on Instagram, Facebook and LinkedIn – Buchmann Bakery Supplies and Buchman Bakery Supply Distributor. Sign up for our newsletter on our website or read past blog articles for more tips at www.buchmannegg.com . We are conveniently located in East San Diego County and service Southern California. We offer delivery and will call services 6 days per week and are looking forward to working with you. Contact us directly at 619-443-6875 or sales@buchmanneggs.com.