I have been experiencing a lot of stock-outs of regular ingredients that I buy from local wholesalers and wasn't too pleased to find myself in a grocery buying these same brands at higher prices. I find myself running up and down to 5 different places just to get weekly supplies now. Noticing this for a good while and it concerns me from a profit margin point of view..as well as time on the road. Do you have problems where you are accustomed using X brand of Y product at Z price and you go to buy the following week and either a) they are out of stock and you notice they are out of stock for 2 weeks straight and more or b) the price has jumped significantly and encroaches on your margins? Worse, I am calling the companies that import and distribute these brands to supermarkets and they keep telling me they are out of stock. Yet the grocery is packed with what I need at "retail" and not wholesale prices. What are your experiences and how do you continue to solve them?
The issue I'm facing now is with Restaurant depot.
It's been 4 WEEKS and the local restaurant depot is still "working on stocking" a certain size of cake box I had requested. I've called so many times and it's some foolish excuse or the other. It's always "please call us in a couple of days and we'll have it sorted out." Thankfully I don't need the boxes yet but if I really needed them I would have to buy them elsewhere and pay more OR buy online and have to pay shipping and WAIT for them to be delivered.
I've decided not to bother with them.
There are other times they're out of stock on some ingredients and I'm thinking, "you guys are supplying businesses here, a delay costs money!" Argh!!!
The saving grace is I often buy items before I run out or really need them which has its good and bad side. I handle this "out of stock" issue by having at least one more source, Dawn Foods is good but they tend to have their items in larger quantities. Sometimes I don't want 50lbs of something I just want 25lbs.
I switched from "brand name" products to generic/bulk after I worked in food packing. That's where you learn that the factory always makes more than they need to can for that fancy brand name, and the rest goes into the off-label or house-label cans at the end of each day.There is always at least 30% price difference based on which piece of paper is stuck to the outside of the tin.
And I learned that "yellow label" intentionally contracts for the cheapest possible food. Very few of their products are worth the money.
So the people who own the name brand will sell at retail because that maximizes profit. They will intentionally short the wholesale side to force the retail sales.