Extra income from fruit and vegetable deliveries and sales

Fruit and vegetable sales and deliveries are a wonderful source of extra income. It is an easy and enthralling market to get involved in, and has few entry barriers.

On a part time basis, about 3 hours a day, my ex-wife was earning between R750.00 and R1000.00 a week. Granted, not everyone will do that kind of turn-over, and some will exceed it. I mention it as an illustration of what can be done.

Starting up
Before starting we decided on our target market, and selected restaurants as our primary market, with take-aways and homes as secondary. We then compiled a list of the f&v products these establishments used.

With our list we visited our local fresh produce market. We walked around each of the Agencies; spoke to several Agents about the f&v business generally, and concerning the particular products they sold. From them we also got an idea of the levels of discount they would give us, and what the current price levels were on a wide range of products.

It was now time to visit our prospective clients. We arranged our meetings with the establishment owners, or kitchen managers. Initial meetings we timed for late morning early in the week, as this was when the kitchens were least busy. Generally we found that the restaurants felt they were being ripped off by their current supplier, and where that was the case, we undertook to supply their produce at market cost plus a pre-determined mark-up. With other establishments we had to promise better service, in the form of earlier deliveries. In our first week we had our target of 5 large establishments!

Our Modus Operandi
Late afternoon was telephone time. From 4 o’clock onward we would telephone clients, and on an order sheet record their requirements. This would be finished by 5.30.

It was then a simple matter to make a list of what was needed for the following day. At 05h00 the next morning I would be at the market to place our orders with the agents. I would then go off to work. My ex-wife would get to the market at about 07h00, confirm the orders and pay. It was then a simple matter to collect the produce, make out the invoices, load and deliver.

Costing
For those clients not paying a fixed percentage on their purchases, an amount of between R4.00 and R8.00 can be added to each individual Item. For example, when potato prices are low, a mark-up of R4.00 is sufficient. When potato prices are high, add up to R8.00 per pocket. An average of approximately R6.00 on a 5kg carton of tomatoes, and R6.00 to R8.00 on a pocket of class 1 medium onions. The more expensive items attract the higher amount. In some cases your mark-up can be as high as R12.00.

The amounts may not look like much, but when you consider that a busy restaurant will order up to 20 bags of potatoes daily, just for baked potatoes, the amounts start making more sense.

Quality
Your Agents will initially assist you in identifying the produce your clients will find satisfactory. However, be aware that your clients will expect top quality items, at poor quality prices. Should this crop up, purchase a low cost, low quality item. It will only be necessary once. Explain to your client that you were considering his budget, and opted for a lower cost item.

As an additional income source, for only a little amount of time, effort and money, fruit and veg sales is a winner.

© copyright Tony Flanigan 2010