Vegetable wholesale business where to start. Shop fruits and vegetables: business plan
In this material:
A vegetable store is one of the most popular food business areas. People daily purchase both standard sets of vegetables for soups, salads, side dishes, and make periodic preparations for the future. On the streets of cities, you can see dozens of tents and stalls selling fresh vegetables and concentrated in one place. Even such high competition does not have a significant impact on entrepreneurs in terms of relevance. But in order for the business to turn out to be as profitable as possible and start to bring serious income from the first days, it is necessary to develop a business plan for a vegetable store with phased organizational measures.
Advantages and disadvantages of vegetable business
Like any type of business, a point for the sale of vegetables and fruits provides for its positive and negative sides. The business organizer needs to evaluate all the criteria in detail in order to determine whether it makes sense to invest in a business under individual conditions.
Advantages:
- Relatively low start-up capital, the size of which depends on the type of outlet - a vegetable stall or a full-fledged store.
- High demand - vegetables are constantly required, as they are everyday food.
- A standard procedure for registering a business that does not involve lengthy paperwork or ordering expensive certificates.
- High profitability - given the constant demand for products, seasonal popularity is also foreseen. For example, in spring, people often buy fresh vegetables and fruits, trying to cope with beriberi. A series of summer holidays, vacation time and, of course, the New Year holidays can triple the cost of the store.
- No need for expensive advertising campaign, especially if you plan to open a small kiosk.
- Availability - vegetables and fruits do not provide for high margins even in winter, so a decrease in demand for products is not observed year-round.
Flaws:
- Perishable goods - subject to the rules of storage, vegetables and fruits are able to retain their appearance for a long time, but the freshness is still gradually lost, unlike most other types of food.
- Competition - Supermarkets, grocery stores, convenience stores will always be competitors. With an unsuccessfully chosen location, specialized outlets are seriously losing in this fight, taking forced measures to close their business.
And if the fact of perishable goods is solved by competently placing orders for products, then it is very difficult to fight competition. Even if you choose the optimal location for opening a vegetable store without neighboring supermarkets, there is no guarantee that construction will not begin nearby in the future shopping center or a chain grocery store. In this scenario, the risk of reducing purchasing power by half is high.
Market analysis and possible risks
Market analysis includes several stages:
- determination of the district of the city and the approximate location of the outlet - for objectivity, it is better to choose 3-4 locations;
- identify potential competitors;
- comparison of the specifics of work, prices, as well as types of premises of retail outlets - a stall, a kiosk or a tent;
- determining the most profitable competitor and identifying positive and negative points.
Tip: only after a complete analysis of the market and the information received, it is recommended to design your own vegetable store. In some cases, it is more profitable to keep a small tent or a mobile pavilion that can be easily transported to another place than to rent a store space with a high rent.
Possible risks in the vegetable business include:
- Perishable products - this leads to the fact of spoilage of fruits and vegetables in the amount of 10-20%. At the same time, if you make purchases in a smaller volume, then there is a high risk of lack of goods on the counter, and this negatively affects the reputation of the outlet. As a result, it will not be possible to insure against a small amount of damaged goods, but losses are compensated by an additional margin.
- Checks and fines - Rospotrebnadzor and other regulatory authorities bypass outlets both in the planned mode and at the request of citizens about the non-compliance of the premises with sanitary standards. If the fact of violation is confirmed, then the entrepreneur faces administrative punishment. The way out is the regular observance of cleanliness and order not only in the trading floor, but also in the utility rooms, as well as the timely disposal of spoiled products.
- Constant monitoring of prices - vegetables and fruits are seasonal products, so the price tags are constantly changing. For example, the period for the sale of gourds is associated with mid-July and the end of September. At first, prices are very high, so the demand for watermelons in the summer is small. Further, the cost gradually decreases, and the entrepreneur needs to focus not only on the purchase price, but also on the offers of competitors, maintaining the same or more favorable price.
- Dishonest employees - the risk is common to all grocery stores when the sellers or workers deceive the entrepreneur. This is expressed both in the theft of products, attributing it to depravity, and in the body kit of buyers, and this already leads to a damaged reputation.
By following the simple principles of competitor analysis, making serious demands on the selection of personnel and conscientiously treating each stage of organizing a vegetable store business, the risks will remain points on paper.
Organizational moments
Opening a vegetable shop from scratch assumes the absence of a business permit. This is where you need to start, because in the future all contracts, including the lease of premises, must be concluded for the owner of the point, who cannot be a simple individual.
Registration of entrepreneurial activity
You can conduct business in the status of an individual entrepreneur or LLC. The difference between them is significant, since a limited liability company is a full-fledged legal entity with authorized capital, the charter of the company, the ability to conclude transactions on behalf of the company, etc.
The individual entrepreneur is individual entitled to do business.
Reference: the difference between the two statuses within the legal field is serious, but if we talk about a vegetable store, then it disappears. An entrepreneur, whether he is an individual entrepreneur or the founder of an LLC, conducts the same activities.
The registration procedure for individual entrepreneurs is somewhat simpler, since an application, passport and TIN are enough. For legal entity you will need not only documents confirming the identity of the founder, but also a package of company papers (charter, decision on establishment, etc.).
The registration procedure in both cases does not exceed 5-10 days.
Choice of location and premises
To open a vegetable business and bring it to profit, you need to conduct a thorough search for a place and premises. They are subject to separate criteria.
Location requirements:
- high traffic of people - busy public transport stops, sleeping areas, crossing large streets with pedestrian crossings;
- minimal accumulation of competitors - you should not immediately choose a market or a fair complex due to the fact that a large flow of people regularly passes there. As a rule, in such places there are already a sufficient number of vegetable tents, which reduces the overall demand for products in a particular place. A good option would be just a busy point of the sleeping area with a supermarket located nearby. Yes, you can compete with it if there is only one store, and there are no similar vegetable tents in the area. The point is that in chain stores products are not of the highest quality and often expired. A specialized point in this regard wins as much as possible;
- having nearby parking spaces or the ability to stop a car will expand the target audience, since many people hurrying home do not want to spend extra time looking for a parking space or a special trip to the store because of a few kilograms of potatoes.
Room requirements:
- area - from 50 sq. m., taking into account utility rooms;
- compliance with sanitary norms and rules;
- lack of humidity in the trading floor, otherwise it will lead to an unpleasant odor and early deterioration of products;
- Possibility of installation of a show-window complex.
Design criteria are determined by the entrepreneur personally, which is decided by the redecoration of the building.
Purchase of commercial equipment
Where to start the arrangement of the premises - with the purchase of commercial equipment. At the first stage you will need:
- rack;
- shelf (one or more);
- showcase;
- air conditioning to maintain the required temperature for storing products;
- cash register;
- scales;
- refrigeration equipment;
- consumer corner;
- auxiliary inventory.
In the process of work, the rest of the necessary things are purchased.
Staff
The number of employees directly depends on the type of outlet. For example, for a kiosk or stall, 2 sellers working in shifts are enough. The loader and the cleaner in this case are not required.
If a grocery store opens with trading floor from 40 sq. m., it is recommended to work at 2 cash desks at the same time, and this is already 4 sellers, 1 cleaner and 1 loader. The work of an administrator and an accountant can be performed by an entrepreneur.
Staff requirements:
- a responsibility;
- work experience in the field;
- lack of bad habits;
- honesty;
- friendliness.
Search for suppliers of vegetables and fruits
Grocery store products are supplied through several channels. You can choose all at once or just one, depending on the assortment of the outlet and the preferences of the entrepreneur.
Options:
- The wholesale base is the easiest and affordable way receiving any product. The advantage is that some suppliers are able to provide all assortments at once, which eliminates the conclusion of many contracts. Minus - it is impossible to make a high margin, because the wholesale base is an intermediary.
- Farmers - a method that provides for minimal spending on the purchase and the possibility of a large margin. Minus - not all peasant farms provide delivery, and the range of products, as a rule, is limited to the region of location.
- Import - in this case, goods that grow only abroad are ordered. For example, bananas, kiwi, mango. In addition, you can conclude a contract for the supply of fresh potatoes in the winter from warm countries.
- Own production - ideal for entrepreneurs who are simultaneously engaged in farming.
In progress sales representatives of one or another manufacturer themselves get in touch with a businessman and agree on cooperation.
Point of sale advertising
The marketing strategy for a grocery store is extremely simple - the business does not need advertising.
All small retail outlets are designed for a local buyer in the area where the store is located. Even if you order advertising on TV, radio, buy a place on banners and billboards, this will not bring results, because few people will go to the other end of the city for vegetables and fruits, if they can be bought nearby.
- a bright sign on the building, symbolizing the opening of a retail outlet;
- flyers in the area where the store is located (in the brochure you need to focus on the assortment and low prices);
- illumination in the evening and at night.
Standard marketing moves will not make a vegetable store popular. Only high-quality products, affordable prices and friendly staff are capable of this.
Financial calculations
Proper bookkeeping at the start is the key to a successful vegetable store business plan.
Investments at the start
Spending before opening a point (in rubles):
- registration entrepreneurial activity and design permits – 20 000;
- rent of premises - 40,000 (at the rate of 50 sq. m. for 800 rubles);
- repair work - 50,000;
- promoter services - 5,000 (5 days)
- equipment - 150,000;
- the first purchase of goods - 30,000;
- additional expenses - 10,000.
Result: 305,000 rubles.
Current expenses
Expenses in the first month (in rubles):
- rent - 40,000;
- utilities - 20,000;
- salary - 110,000 (4 sellers for 20,000 each, a loader and a cleaner for 15,000 each);
- spending on the purchase of goods - 100,000.
Result: 270,000 rubles.
Profit
The income of a vegetable store directly depends on the assortment and purchasing power.
- average attendance per day - 60 people;
- average purchase - 300 rubles. It should be understood that this is precisely the average value, and not a pattern for each buyer. 10 people in a row can buy each in the amount of 70 rubles, and the 11th buyer will pick up fruits for 2,000. But on average, each of them bought for 245 rubles;
- revenue per day - 18,000 rubles;
- monthly earnings of the store - 540,000 rubles.
This is dirty income, because mandatory spending has not yet been deducted from it.
Net profit - 540,000 minus 270,000.
Result: 270,000 rubles.
Part of the tax can be deducted from this amount, as well as unforeseen expenses and damage to the goods. The final net profit is indicated in the limit of 200 thousand rubles.
Business Profitability
Profitability is determined by the formula - the ratio of net income to dirty, multiplied by 100%.
200 000/540 000*100=37%
The return on investment will take 3-4 months.
The profit of the vegetable business is characterized by both high demand for quality goods and individual organizational issues. If you have a competent business plan, you can avoid many of the troubles associated with finding a place and premises, analyzing competitors.
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Since the Middle Ages, the agricultural business has been revered for the inhabitants of our country as the most natural occupation. For this, as it seems at first glance, there are all conditions:
- Various climatic conditions for growing great amount different crops, vegetables and fruits;
- large areas of agricultural land;
- the innate trust of most consumers in agricultural products of "home" origin;
- a system of subsidies and various kinds of benefits, to which domestic producers gain access due to the introduction of an import substitution policy.
At the same time, making money on the wholesale trade in vegetables and fruits is not always easy - it's all about choosing right business model. It could be like own production– for example, farmlands or greenhouses for growing vegetables, orchards, vineyards or berry plantations, and wholesale. Any model requires investment in assets or infrastructure, the establishment of a marketing system, and of course - documentary support.
Advantages and disadvantages of fruit and vegetable business
Trading fruits and vegetables as a business has both its own pros and cons. The owner of such a company will definitely win, because:
- There is always a demand for this product;
- the availability of seasonal fruits and vegetables allows you to make a profit all year round;
- this business does not require sky-high investments and allows you to constantly stay within the framework of high profitability, especially if you focus on big cities.
At the same time, the vegetable business also carries certain risks:
- Vegetables and fruits spoil quickly enough, it is not always possible to work at the warehouse, and the turnover of the warehouse should be quite high;
- competition among suppliers and traders is high;
- seasonal work is not always comfortable - hot in summer, cold in winter, especially in an open tray.
Forms of doing vegetable business
Like any other business, a vegetable and fruit business can be built in different forms- it all depends on the size of the initial capital and the scale of the business that the owner intends to build. Much depends on who the business is designed for, who the potential buyer is, what his consumer basket is, how much he is willing to spend and for what. Before scaling a business, an entrepreneur often experiments with the assortment, tries different formats of outlets - from trading from a car to opening a kiosk or store, studies consumer tastes and experiments with marketing ideas. What are the advantages of those vegetable business models that are most popular today?
Trading from a car
This trading format is best suited for selling seasonal fruits and vegetables. All that is required to start such a business is permission, but you don’t have to think too long about a marketing strategy. It is unprofitable to rent for the sale of seasonal products trading area or tray, especially if the product is perishable, like garden or wild berries. It is much more expedient to go shopping by car in countryside and sell goods in the city. V Lately you can often come across the practice when a car with vegetables goes around residential and sleeping areas, and the seller with a loudspeaker announces the sale of fresh vegetables and fruits. It is profitable to sell seasonal products from a car, wholesale of vegetables from a car is also quite profitable - you can transport large volumes of goods at once. Among the minuses are the lack of comfort and high fuel costs.
Market, tray, small trading form
Trade in vegetables and fruits is also possible from a stall in the market - such a business organization at first will be ideal to ensure a stable income. Renting an area in a residential area will be inexpensive, and having recommended your products, you will also gain regular customers. In a small town, this form of trading is often the best form of business. In a big city, the main obstacle is competitors concentrated in one place and the difficulty in finding a really convenient and noticeable place in the market. It is clear that the tray, which is lost among many other similar ones, and at the same time does not differ high quality service and product range, is unlikely to attract its buyer. But if the latter knows that only you will find the “exotic” product he needs (and any product always has its own, albeit limited, audience of buyers), he will inevitably come to you.
Concept store idea, farm products and organic products store
Today, a vegetable business can be built not only by volume, but also by building an interesting concept. Due to the fashion for organic products, the fear of fertilizers and pesticides, the reluctance of people to buy tasteless products in supermarkets and a kind of “return” to the roots, the demand for farm products has increased. It is one thing to sell bags of food grown "without a soul" in vast areas of agricultural firms using chemicals to control weeds and pests - and quite another to sell a product grown by a specific person who has invested all his talent and skill in growing large and juicy tubers of potatoes, beets or onions. Such marketing, backed up by a good story, is bound to strike right in the heart of its consumer today. Naturally, the audience of organic products is concentrated in big cities, and in order to reach it, special tools are needed - a concept, a store design, and enough big investment into external effects. But the benefits that can be obtained from such a trade in vegetables are immeasurably higher.
Deliveries of fruits and vegetables to retail chains
Perhaps the most profitable wholesale trade in vegetables and fruits is possible in the format of organizing deliveries in large chains supermarkets. However, in terms of the level of bureaucratic delays, the number of necessary permits and other procedural nuances, this is the most unprofitable strategy. This path is worth going if you are ready to organize really stable and large deliveries, and you should not start for the sake of several batches of goods. Yes, and it's no secret that go to the big retail chains to a person "from the street" is almost impossible.
Online store or targeted delivery of goods
Is it profitable to trade vegetables and fruits via the Internet? Yes, it's profitable. Everything more people today they experience a catastrophic lack of time even for an elementary shopping trip. They will be only too happy to visit your website, add to cart desired goods, specify convenient terms and format of delivery and payment and get everything you need right on the threshold of your own apartment. However, this format of work can have its own pitfalls:
- Limited delivery channels due to perishable products;
- it would be advisable to expand the range at the expense of other food products;
- it will still not be possible to reach a low cost due to the mandatory costs of delivering goods.
At the same time, there is no need to keep large warehouse- a fairly extensive network of suppliers.
Legal nuances
Selling vegetables and fruits as a business requires legal registration. You can register as an individual entrepreneur or register an LLC. It is also important to choose a taxation system that will not become burdensome for you, and for this - carefully calculate the business model of your future costs and potential income.
Permits
What documents are needed to trade fruits and vegetables?
- Naturally, the most important documents are related to the registration of IP. All extracts from state registers must be available.
- The second step is to register the type of activity for OKVED system is a list of the types of domestic economic activities that you are engaged in or potentially intend to engage in in the future. Please note - if you are ambitious enough to enter the direct conquest of the foreign market in the future, the volume of documentation will increase several times. Therefore, we recommend that you first stop, however, only in the domestic market. According to the OKVED system, your code will most likely be 52.21 - Retail fruits, vegetables and potatoes.
- The third step is to obtain permits for work from the fire, sanitary and epidemiological, and, if necessary, from the phytosanitary service.
- Making a corner of the buyer and consumer, where your registration information, extracts from registers, certificates of the taxpayer, extracts from the law on consumer protection, and also a book of complaints and suggestions should be presented.
- Collection of product quality certificates - certificates of conformity, if necessary - radiological control, certificates of product origin, etc.
If you want to conduct a safe and responsible business, it is important to remember that these documents, especially those relating to the quality of goods, are mandatory for any form of trade. What documents are needed to trade vegetables from a car? All of the above, except perhaps for permits from the fire service due to the lack of a stationary room, which must be equipped according to all fire safety requirements.
IMPORTANT! For those wishing to learn in the future foreign market It is important to remember that within the framework of the regulation of trade in agricultural products within the WTO (World trade organization) there is a system of restrictive and incentive quotas for exports and imports certain types agricultural products. This means that the sale of some types of goods is encouraged, while others are limited. Therefore, before leaving international market it is important to study not only consumer demand and tastes in the country of export, but also the legislation governing quotas and preferences for this commodity item.
Seat allocation
Selling vegetables as a business may involve finding a stationary point of sale. If we are talking about a market stall, then in order to sign a lease agreement for it, you need to contact the market administration. If you are looking for a space that can be rented on a long-term basis as a store, then you need to apply for the appropriate permit from the city council.
Business setup costs
Selling fruits and vegetables as a business requires investment, the amount of which will depend on the size of the project and the initial base. When calculating costs, we take into account the following factors:
- Rent of land, garden, greenhouse;
- costs for growing products - seed fund, tillage of land and seeds, fertilizers, treatment from weeds and pests, top dressing;
- fuel costs for sowing, processing and harvesting;
- wages of hired personnel;
- certification;
- primary processing of products, processing for long-term storage;
- rental of storage facilities;
- rent of a point of sale;
- logistics and delivery costs;
- storage losses, depreciation of transport and equipment;
- other minor expenses.
Each entrepreneur, based on these articles, calculates his expenses and potential income (based on profitability in the amount of 15 - 25%). Of course, the costs will be lower if you are going to sell products from your own garden or vegetable garden, and higher if you have to purchase products from wholesalers or farmers.
Marketing strategy development
No matter how high-quality your product is, without a well-thought-out marketing strategy, you will not be able to successfully compete in the market. According to statistics, the import substitution policy shows the following results: last years vegetable imports fell by more than a third, while fruit imports fell only slightly. It is understandable - the Russian market is able to offer an alternative to imported potatoes, onions or apples, but not oranges and bananas. But even such natural limitations, modern marketers manage to turn to their advantage with the right approach to finding “their” buyer and, last but not least, the ability to tell a story about why this buyer should buy their products.
Formation of the assortment
The right range and price policy- this is already half the success. It is unlikely that you will be able to earn a lot by selling expensive greenhouse pineapples in a small village. But in the central market big city tomatoes from a closed farm will certainly be in demand. If you are determined to educate the buyer and change his tastes, also think about supplying your exotic products with branded recipes for their preparation. Remember that in our market, the option of alternative products that can replace something more expensive works well. So, legumes once became popular as an alternative to expensive meat products, and the promotion of a healthy lifestyle created popularity for such previously unseen fruits as avocados, celery, etc.
Quality service from packaging to cuisine
If you do not have funds for brand promotion, but you want to look worthy in the eyes of your customers, use the tools that a good service can offer. The smile and neat appearance of the seller, neatly laid out goods, and what’s there - packaging in paper bags instead of annoying cellophane, which we are actively fighting now - and your outlet already looks “expensive” and prestigious compared to those standing nearby.
Additional bonuses for the client
Do not forget about the traditional marketing "tricks, due to which you can" leave "even at the peak moments of seasonal competition:
- Discounts for regular customers- people value personal relationships and love to be singled out from the crowd;
- a slight but discount on a seasonal product - especially in lean years, when your neighbors inflate the price, in the hope that the buyer will buy the product at any price in the absence of an alternative;
- small bonuses or gifts - a bunch of greens or a new variety of apple offered for tasting, a bag of dried fruits or seasonal seasoning. These little things are enough to sometimes cheer up your client and make him come back to you again.
A business selling fruits and vegetables can be started by opening a small stall in the market, or, for example, in a residential area. The success of the business is almost guaranteed, as food products are among the most sought-after goods in the retail trade.
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Services
Vegetable stall service provides:
- retail sales of various fruits;
- piece sale of vegetables in assortment;
- acceptance of an order for the supply of certain products in the required volume;
- assistance to customers in choosing a product;
- client consulting;
- packaging of purchased vegetables/fruits;
- home delivery of products;
- sale of goods on credit;
- temporary storage of purchased products.
Business Forms
Retail sales of fruits and vegetables can be organized in the following ways:
| Format | Description |
| Sale from car | Main features:
|
| Trade in a kiosk / tent in the market | Main features:
|
| Street sale in a tent | Main features:
|
| Sale of goods in the trade pavilion | Main features:
|
| Score | Main features:
|
A profitable business selling fruits and vegetables can be both in the market or in the pavilion, and on the street.
The choice of one or the other depends on:
- material opportunities of a businessman;
- the level of competition in the local market;
- who the entrepreneur is - a reseller or a manufacturer of products;
- own vehicle(truck or car);
- personal preferences;
- availability of storage space for goods;
- rental cost, etc.
Along with retail trade, many businessmen stop at organizing a large vegetable base. Its clients will mainly be entrepreneurs. The wholesale business format requires serious investments and experience in this area of operation. Therefore, it is recommended for a beginner to start a business with a small shop.
Relevance
V modern conditions functioning, the demand for the vegetable business is due to the following factors:
- High demand. Vegetables and fruits are products that almost all people consume without exception. They belong to the goods of daily demand. The main range of fruits/vegetables is available to a large number of consumers.
- No license required. To occupy data, you do not need to obtain special permissions from government agencies. Documentation sanitary control can be issued in a laboratory on the market or taken from suppliers.
- Low initial investment. To open a vegetable stall, you do not need to buy expensive transport and commercial equipment, as well as form a wide product range.
- High profitability and profitability, as well as quick payback. By selling seasonal goods in both winter and summer, you can count on high profits.
- Minimum marketing expenses. To organize the sale of vegetables and fruits, there is no need to work on recognition.
- You do not need to maintain a large warehouse of products. This is due to the fact that vegetables and fruits have a short shelf life and are not purchased for future use.
Description and analysis of the market
Main features Russian market for the sale of fresh vegetables and fruits:
- Leading regions in the sale of vegetable products: Moscow (18% of the market capacity), Moscow Region (5%), St. Petersburg (5%).
- According to the Federal State Statistics Service, 97.8 kg of plant food per capita per year (excluding potatoes). Monthly consumption of vegetables by one Russian: Bashkiria - 3 kg, Tyumen region - 3.4 kg, Krasnodar Territory - 4 kg, St. Petersburg - 6 kg. According to the UN Food and Agriculture Organization, one person in Russia eats 124.2 kg of vegetable dishes per year. For comparison, for example, in the USA this indicator is - 122.9 kg, and in China - 321.5 kg.
- Prices for vegetables and fruits sold in the northern regions are higher than in the south. Also, in warm regions, their cost is 20-30% lower than in the country as a whole.
- Fees for individual products vary significantly throughout the year. For example, per kilogram of fresh cucumbers in summer period sellers ask for 70 rubles, and in winter - 200. This trend can be traced even in the southern regions of the country.
- The volume of domestic products on store shelves is increasing.
- According to sociological research, 85% of Muscovites buy vegetables/fruits once or several times a week.
- Leaders in the sale of vegetables: potatoes, cucumbers, onions, tomatoes, carrots.
- Leaders in the sale of fruits: apples, oranges, strawberries, tangerines.
- Muscovites most often buy plant products in supermarkets and supermarkets (71% of consumers), as well as in markets (10%).
Photo gallery
Share of buyers and frequency of purchases of vegetables/fruits in Moscow Change in the cost of fresh vegetables by regions during the year, rub./kg Regions with the highest sales of vegetables Consumption of vegetables by region (as of the second quarter of 2012) Consumption per capita by regions of Russia Share of buyers of fresh vegetables (as of June) Share of fresh fruit buyers (as of June) Places where Muscovites buy fruits and vegetables
The target audience
Description of consumers of a vegetable (fruit) stall:
| sign | Characteristic |
| Floor | Men and women (most often women make purchases) |
| Age | 20 to 60 years old |
| Social status | Average and below average |
| Nationality | Irrelevant |
| Place of residence | Close to retail outlet |
| Interests, hobbies | Adhere to a healthy lifestyle, exercise |
| Characteristic types | For instance:
|
Competitive advantages
The strengths of a small vegetable / fruit stall should be:
- competent location (away from direct competitors and close to a large number of buyers);
- a well-thought-out product range (taking into account the needs of the local market);
- quality and friendly service;
- sale of fresh and ripe vegetables and fruits;
- advising clients on the positions of the presented product range;
- the correct location of the goods on the showcase;
- neat design of the counter;
- smart pricing policy.
Advertising campaign
Since the assortment of the vegetable stall is familiar to the target audience, it does not need advertising. To form your own extensive customer base, it is important to monitor the quality of service and products sold. An entrepreneur should listen to the wishes of consumers and try to bring his service and assortment to the ideal. Thus, in the area where the outlet is located, positive information about the store will be distributed, which will attract new customers.
Step-by-step instructions for opening a vegetable stall
The successful opening of a stall selling vegetables and fruits involves the consistent implementation of the following points:
- Studying the features of entrepreneurial activity in the selected market segment. Including analysis of supply and demand, familiarity with the nuances trading activities, pricing policy of competitors, etc.
- Drawing up an assortment of goods for sale (taking into account seasonality). Consideration of the rules for their storage, determination of approximate harvest dates.
- Search for potential suppliers of products.
- Calculation of a business plan from scratch.
- Determining the location of the kiosk (on the street, in the pavilion or in the market).
- Finding and hiring a salesperson/s.
- Purchase of equipment and the first batch of goods.
- Obtaining a trade permit (if it is planned to organize a stall on the street).
Range
When compiling a list of products for sale, an entrepreneur needs to take into account the following nuances:
- Demand. The assortment should take into account the needs of potential buyers in the area where the store will be located.
- Saturation/variety. This will allow each client to find what he is looking for.
- Interest. The presented products should attract the attention of the target audience.
- Seasonality. In the cold season, classic goods (for example, potatoes, beets, apples or tangerines) are in great demand. And in warm weather - berries such as cherries, cherries, raspberries, strawberries, etc., as well as watermelons, melons, apricots, peaches, etc.
Basic assortment
| Product groups | Indicative list |
| Roots |
|
| Vegetables (except root vegetables) |
|
| Fruits sold all year round |
|
| seasonal fruits |
|
| Exotic fruits |
|
| Greens/herbs |
|
| Dried fruits |
|
| nuts |
|
Documentation
small registration process trading business in the field of fruit / vegetable sales involves the following nuances:
- The best organizational form- Individual entrepreneurship. Compared to alternative options, creating an IP will save money during the registration of a company and simplify the preparation process necessary papers. It is easier to open and run such a business than an LLC.
- OKVED - 47.21 "Retail trade in fruits / vegetables in specialized stores."
- The optimal system for paying taxes is the simplified tax system or UTII.
- After completing the registration of an individual entrepreneur, the company must register with the funds and statistical authorities.
For the sale of vegetables and fruits, the following documents are required:
- certificate of an individual entrepreneur;
- permission from the Sanitary and Epidemiological Station;
- conclusion from the Fire Service;
- consent of local authorities (in the situation of placing a kiosk on the street);
- certificates for the products sold.
Location and premises
Parameters for choosing a place to place an outlet for the sale of fruits / vegetables in the stall format:
- high permeability of potential buyers;
- location near the stalls where goods are sold, the consumers of which are the necessary the target audience(e.g. bakery, butcher shop, confectionery etc.);
- remoteness from shops, kiosks, counters and other places where similar products are sold;
- good approach to the shop;
- availability of car parking nearby.
The optimal area of the stall is 8-10 square meters. m.
To get the maximum profit, the entrepreneur needs to organize several outlets in different parts of the city.
Practice shows that if it is not possible to store goods in the place of their direct sale, then even a small business will need a warehouse.
In this case, fruits and vegetables can be stored in:
- utility room of your own house/apartment (for example, basement, storage room or balcony);
- (with or without heating);
- truck;
- rented premises near a retail outlet.
Equipment and inventory
List of equipment for a street vegetable stall:
| Name | Approximate prices, rub. |
| Kiosk | 40 000 |
| Cash register | 18 500 |
| scales | 6 500 |
| Cart | 3 000 |
| Showcase shelves | 10 000 |
| Counter | 3 000 |
| Shelving | 5 000 |
| Chairs | 2 000 |
| Truck (used) | 400 000 |
| Inventory: knives, containers, boxes, buckets | 5 000 |
| Air conditioner | 20 000 |
| refrigerators compartment | 15 000 |
| Other equipment, inventory | 12 000 |
| Total: | 540 000 |
Photo gallery
Cargo gazelle - 400,000 rubles Scales - 6,500 rubles Kiosk - 40,000 rubles Cash register - 18,500 rubles
Staff
In order for the stall to work seven days a week, you will need to hire two sales assistants. Save money on wages loader, driver and accountant is possible due to the fact that the entrepreneur himself will take over their functions.
Basic requirements for job seekers of the vegetable department seller:
- knowledge of the range of goods and the features of its sale;
- experience in trade is preferred;
- sociability;
- goodwill;
- attentiveness;
- courtesy with the client;
- cultural speech;
- neat appearance;
- no criminal record;
- having a medical book.
Suppliers
Product suppliers can be:
- domestic and foreign agricultural producers;
- wholesale fruit and vegetable bases;
- resellers (private intermediaries between farmers and sellers).
In addition, an entrepreneur can sell products grown on his farm. In this case, it will be more profitable to combine the sale of your own vegetables and fruits with goods purchased on the side. For example, if bananas do not grow in Russia, then they should be purchased from private intermediaries or wholesalers.
Key criteria for selecting reliable suppliers:
- low prices (discounts);
- good product quality (there are documents for the entire range sold);
- availability of goods in the required quantity;
- providing quality assurance;
- optimal delivery times;
- the ability to place an order for the supply of certain types of goods;
- wide range of;
- good reputation.
The video tells how to choose the right supplier of vegetables and fruits for your own outlet. Filmed by the channel: "Mikhail Balandin".
Financial plan
Financial planning of a business project for a stall selling vegetables and fruits was made on the basis of the following data:
| Indicator | Meaning |
| Business Format | Small outdoor stand-alone kiosk |
| Location | Russia, a city of a million people in the Central Federal District, a residential area |
| Organizational form of business | Individual entrepreneurship |
| Stall | Area - 8 sq. m. (there is an opportunity to store goods in the premises of the outlet) |
| Specialization | Universal (selling a classic set of products) |
| Availability of own production | Not |
| Suppliers | Wholesale urban base and regional greenhouse |
| Staff | two sellers |
| Working mode | No days off, from 10.00 to 19.00 |
| Functions performed by the head | Some responsibilities:
|
| The target audience | Description:
|
| Marketing | A bright sign and several themed posters are required to decorate the kiosk |
How much does it cost to open?
Capital investment in own business:
| Expenditures | Approximate prices, rub. |
| Registration of individual entrepreneurship | 5 000 |
| Preparation of documents and registration of permits | 20 000 |
| Purchase of fixed assets and inventory | 540 000 |
| Renting a land plot for a stall (for three months) | 90 000 |
| Arrangement of a kiosk | 10 000 |
| Marketing costs | 20 000 |
| Salary with accruals (for two months) | 85 000 |
| Purchase of goods | 100 000 |
| Other costs | 10 000 |
| Total | 880 000 |
Recurring costs
Every month, to maintain the business, the entrepreneur will make the following expenses:
| Expenditures | Approximate prices, rub. |
| Rent per place | 30 000 |
| Communal expenses | 5 000 |
| Renewal of the product range | 100 000 |
| Salary (with tax deductions) | 42 000 |
| Advertising | 3 000 |
| Depreciation | 2 000 |
| Fare | 5 000 |
| Write-off of damaged goods | 5 000 |
| other expenses | 3 000 |
| Total | 195 000 |
Income
The calculation of the performance indicators of the vegetable stall business idea was made on the basis of the following data:
Main financial indicators project:
| Parameter | Meaning |
| Average monthly revenue in the first year | 315 000 rubles |
| Average monthly revenue in the second year | 378 000 rubles |
| Annual revenue for the first year of operation | 3,780,000 rubles |
| Annual revenue for the second year of operation | 4 536 000 rubles |
| Average monthly profit in the first year | 120 000 rubles |
| Average monthly profit in the second year | 163 000 rubles |
| Annual profit for the first year of operation | 1 440 000 rubles |
| Annual profit for the second year of operation | 1 956 000 rubles |
| Business profitability in the first year | 38% |
| Business profitability in the second year | 43% |
Calendar plan
Calendar schedule for the implementation of the main activities of the vegetable stall business plan:
| Stages | 1 month | 2 month | 3 month | 4 month |
| Collection of information about the functioning market | + | |||
| Studying business features | + | |||
| Formation of a detailed business project from scratch | + | |||
| Collection of documents for registration of individual entrepreneurship | + | |||
| Legal registration of the activity of a vegetable shop | + | |||
| Finding a place to place a stall | + | |||
| Obtaining permission for the location of the kiosk in the selected territory (including the execution of a lease agreement) | + | |||
| Equipment selection | + | |||
| Purchase of equipment | + | |||
| Carrying out work on the repair of the stall, its design and installation of commercial equipment | + | |||
| Search for suppliers/partners | + | + | + | |
| Hiring workers | + | + | ||
| Supply of fruits and vegetables for filling shop windows | + | |||
| Obtaining permissions from supervisory services | + | |||
| Kiosk opening | + |
Risks and payback
The main risks of a vegetable shop business project:
| Risk | Characteristic | Probability |
| Losses from damage to products (for example, loss presentation, taste, decay, wilting, etc.) | To prevent this risk, it is important:
| high |
| Big competition | Main competitors:
In order to succeed, an entrepreneur must take care of the formation competitive advantage own mini-trading enterprise. | high |
| High costs of maintaining a stall in winter | Since a stand-alone kiosk needs to be heated to maintain the desired temperature during the cold season, this leads to an increase in overhead costs. | high |
| Rising purchase prices | An increase in the cost of goods can be caused by:
To maintain a customer base, an entrepreneur must adjust the assortment of his shop and try to find new suppliers. | high |
| seasonality | It is important to offer the buyer seasonal products. If, for example, in winter there are no fresh strawberries and cherries, but there are tangerines and persimmons, then they can diversify the range of products. | Average |
The payback of a small business selling vegetables and fruits will be 9-12 months.
I would like to present you my case on remote business on wholesale deliveries vegetables and fruits. It's about other people's vegetables and fruits, as you know. And we will act as an intermediary between the seller and the buyer. Everything that will be discussed below is personally tested by me in practice.
To make it easier, I will describe the whole scheme of our business for the sale (resale in our case) of vegetables and fruits using the example of potatoes. There is a fairly stable demand for potatoes in Russia, this is a mass product and quite inexpensive.
Intermediary agency business on wholesale sales vegetables and fruits is much easier than the classic business on the same products, which requires tens, and sometimes hundreds of millions of investments of personal funds. Therefore, in order to earn an average of a hundred thousand rubles in this business, it is enough to know general information and scheme of work in this area.
To make it as clear and understandable as possible, I’ll tell you, using the example of potatoes, the product that I chose. You can see how much the population of our country alone consumes this product every year: in 2017, 29.6 million tons of potatoes were harvested in farms of all categories, and this number is growing year by year.
So, let's begin.
Types and varieties of potatoes
All potatoes are divided into 2 types:
- Seminal.
- Food.
By varieties - in each area, 3-5 main varieties are usually grown. Therefore, you do not have to study a large amount of information.
Supplier search
Each supplier is interested in selling his harvest as soon as possible. Therefore, they are very willing to cooperate.
Contact information for Farm Owners can be found on the Min. Agriculture almost any area in which you reside. Or we are looking for all organizations on request - KFH (Peasant Farming) and similar in meaning to the name of the organization.
Search for vegetable suppliers in Yandex It’s worth calling in the morning and if you didn’t get to the owner of the enterprise, then immediately ask him mobile phone which they will gladly give you.
Negotiations with suppliers
It is better, of course, to arrange a meeting by phone and personally discuss everything live, but most often the fields are located somewhere in the region and without a personal car it will be a little problematic to get there.
If you do not have a car, but there is an opportunity to ask someone, spend a day and get to know the owners personally, it is better not to waste this opportunity. This will be to your advantage. If this is not possible, then everything can be discussed over the phone.
Negotiations on time can take 10-15 minutes, and this is normal - the owners of enterprises are used to such calls and usually react positively. The task is to find out important parameters, how:
- grade;
- caliber(size);
- expected yield;
- the workload of the economy;
- package;
- the presence of weights;
- what is the most convenient way to get there, who meets;
- cash / non-cash payment, whether they work under the contract.
After that, be sure to ask for product photos. The client always asks for photos, download others from the Internet - I do not advise, because. the client is most often not the first year in this business and upon arrival can easily understand that he was deceived, which will cause a negative.
Pricing (our markup on a product)
After discussing all the parameters of the potato, it is worth warning the owner about the size of your margin.
In potatoes, it is from 50 kopecks to 2 rubles on average (for 2018).
It is better to sell at least 20 tons - this is one truck. That is, earnings will be from 10 to 40,000 rubles. from one truck. I do not recommend trading with a smaller volume.
You can sign an agency agreement with the owner, but most often a verbal agreement is enough. You take your money either in cash after the transaction, or the owner transfers it to a debit card.
Sales channels, advertising
I don’t see the point in writing a lot here, since it’s not difficult to find a client with competitive prices and acceptable product quality.
Sites such as AgroServer and Avito work best. Again, publish good photos and a full description of the benefits of the product and work with you. It is very important!
Let's talk about how much you can earn on the resale of vegetables.
Now about the main thing. Personally, I earned 80-120 thousand rubles for the seasonal month (season September - December) that year. remotely.
People who have the opportunity to attend transactions and carry out large orders through their company as intermediaries earn up to 10 million rubles. for the season. And most often then they already acquire their storage facilities and sell from it.
But we are discussing remote earnings, so you should count on the amount from 50,000 to 200,000 rubles per month. I have such earnings and the guys I know who work according to this scheme. As such, there is no ceiling on earnings of course. Everything, as always, depends on you.
Pros and cons of a vegetable resale business
pros
- Earnings on average 100,000 rubles. per month.
- remote work.
- You do not bear any responsibility.
- A lot of customers (if you post well-written ads).
Minuses
- The owner can throw. In search of good suppliers, I was scammed more than once. Here, as they say, natural selection occurs by screening.
- It is desirable to be on the phone from 7:00 to 22:00. Customers call at any time and you should strive to answer all calls.
- Costs for telephone connection. Well, if desired, on Avito and agroserver (but not much). To earn 80-100 tr. I invested no more than 2 thousand rubles .. / month.
- The transaction cycle varies from 1 day to 2-3 weeks. Depends on the buyer.
How to trade vegetables in the market? What to sell? Or maybe not? .. scary.
Back in the winter of this year, I decided to grow more seedlings than I usually did and try to go to the market with the grown vegetables. I also made more ridges for cucumbers and sowed the seeds in the ground.
It was just an experiment - to grow cucumbers, tomatoes and sell them on the market. It was necessary to understand PERSONAL EXPERIENCE- can you make money on it? What is the whole process from a seed to money in your pocket. There was no goal to earn a lot at once, just to understand the essence.
I must say right away that the experiment turned out to be successful. Everything has grown, delivered to the market, sold.
The very first problem I encountered was fear. I was afraid to go to the market, stand behind the counter, weigh it, talk to customers. The cucumbers have already been picked, the tomatoes have turned red, some have been eaten, rolled up in jars, and I am still delaying the market.
Thanks to my wife. She actually kicked me out to decide on a trip. Since I didn’t know how and didn’t know anything, I went to my friends in a neighboring village, who had been growing something for several years and went to trade in the market. Thanks to them, I plunged into trading.
In the evening I picked a couple of boxes of cucumbers and the same number of tomatoes. I could not fall asleep, my blood pressure jumped, it even seemed to me that my temperature had risen a little.
At five in the morning I got up and went by car to my friends. There we transferred my boxes to their car and drove to the market in the district center. All the way I asked them about something, and they all laughed and smiled from my fears and experiences.
We arrived, questioned the merchants who were already there, and began unloading crates of vegetables. They set up tables, boxes and began to wait.
A couple of hours passed and my boxes were empty, everything was sold. I was in mild shock. After counting the money, I realized that I received more for these hours than for two days of ordinary office work.
Half of July and the whole of August we traveled together to the market. Together it was more interesting, calmer and more economical.
So, what conclusions did I draw.
- It is possible and necessary to grow vegetables and trade them. On earth, you can actually grow money.
We will overcome fear. It is important to take the first step and not be afraid of mistakes.
- One of the problems that a vegetable grower can face is the weather. If the hail has passed, then you can forget about the profit for the whole summer.
- You need to be on topic. If I sell my cucumbers and position them as environmentally friendly, then I have to tell the buyer everything about cucumbers, how I grow them, whether I use chemicals, etc.
- You need confidence in your product. This is ensured by really high-quality cultivation of vegetables. Some traders in the market do not advise their friends to buy vegetables from them. Some distributors bought cucumbers for themselves from me.
- A low price is not a guarantee of a good sale. My cucumbers and tomatoes were the best on the market and I charged higher than the others. All distributors traded the same cucumbers purchased at the same base. My cucumbers favorably differed from the general market goods, it was clear that they were homemade, fresh. Once it happened that at eight in the morning I was already sitting without goods, counting money.
- You need to talk to people. It happens that a person stands, as it were, nearby and looks past, but in fact he looks closely and evaluates. There is no need to call in a general way, a personal appeal to a person is more effective than a generalized one to the crowd. I talked with one person for five minutes, telling how cool cucumbers are, that I eat them, and my family, that this is the best on the market, and how I rarely come here. In the end, he took the whole box.
- A good product and human contact with people, gains regular customers who are looking for you in the morning.
- You need to read books on vegetable growing and learn new things.
- From the fear of trading, you can go to the excitement of sales. Surprisingly, I did not expect from myself, but I liked going to the market, selling and earning.
- The atmosphere in each market is different from each other. There are tough markets, there are markets with a humane attitude between the implementers.
Next spring I will sow more seeds and plant more seedlings. The seeds have already been bought, the land has been prepared.
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