How To Become A Vegetable Wholesaler/Reseller?

. 5 min read
How To Become A Vegetable Wholesaler/Reseller?

How Do I Start A Vegetable Selling Business?

  • Agriculture no longer remains a distant, rural activity.
  • With more massive crowds shifting to organic farming, the food business has become quite popular among people from all backgrounds.
  • While a few people are directly working on farms to cultivate eco-friendly produce, an equally large number of people are looking to enter into the business end of this profession.
  • The vegetable farming business in India is highly profitable. India is the second-largest producer of vegetables globally, with 2.8 percent of our agricultural lands used for the cultivation of vegetables.
  • With an ever-growing demand for food, this business will always be in need.
  • However, not all farmers have the facilities to sell their products or are interested in business.
  • At this juncture, there are numerous possibilities for investment.
  • Here are a few steps that will help you kickstart your vegetable wholesale or reselling business.

Research About The Business And The Products

  1. To sustain this business, you need to be informed about the products you are planning to sell.
  2. Learn about the quality, availability, storage, and climatic conditions required for the vegetables you plan to sell.
  3. You must demonstrate a strong interest and knowledge of fresh vegetables- what is in season, what is the shelf life, and how to identify if the product you buy is new and quality.
  4. You also have to assess the competition in your area to create a business plan accordingly.
  5. While this business is undoubtedly not risky or prone to lack of demand, the presence of other grocery businesses will impact your success significantly.
  6. Furthermore, you will have more to lose as you will be selling perishable items.

Choose The Vegetables You Want To Sell

  • After thorough research of your area, you need to decide on the vegetables you will sell.
  • Experts suggest narrowing your focus on just one or two kinds of vegetables, in the beginning, to gain expertise in the same field.
  • Apart from the type of vegetable, you must also identify the farming method: organic, greenhouse-grown, etc.
  • On the whole, organic items sell at a larger price.
  • However, the procurement of the same is more complicated than regular produce.
  • You could also choose to deal exclusively with unique or rare vegetables.
  • In this case, you might have to procure the items from other parts of the country or even internationally, which would influence your budget and, consequently, your target audience.

Identify Where You Will Purchase Your Products

  1. Once you have a clear plan on what you want to sell, you will have to find a place to source these vegetables.
  2. The best option would be to buy them directly from producers.
  3. Look out for farmers’ markets, or if you are willing to invest in transportation, you could even source them from agricultural fields.
  4. However, remember that the distance must be viable: a business close to fields or farmers’ markets will not be successful due to competition and low prices, but a site significantly farther away could lead to loss due to transportation.
  5. Alternatively, you can also purchase your products from distributors to avoid transportation costs.
  6. Distributors often sell vegetables to different parts across the region, ensuring that you are not compromising on quality.

Make A Quality Business Plan

  • The next step towards establishing your business is to make a realistic business plan.
  • First, you need to identify the capital you can invest in for this venture.
  • You can source this capital through loans from banks or by involving investors.
  • Once you have decided on your budget, draw up a detailed plan of all the expenses you will incur.
  • Since vegetables are perishable items, it is essential to have a realistic prediction of sales to ensure that you do not buy more than you can sell, and the purchase gets rotten.
  • Note down the logistical and operational costs such as rent for storage space, cost of renting/purchase of vehicles for transportation, and accompanying maintenance costs.
  • In the initial stages, you could rent out a storage space and later buy the area when your firm shows profits.
  • You will also have significant maintenance costs: refrigerators or freezers to store the vegetables and supplies to ensure cleanliness and safety of the storage site.
  • Remember to include insurance costs such as fire, theft and damage, payment for staff, and motor insurance for any delivery vehicles.
  • Remember that the plan needs to include not only the initial costs but also a way to make a profit.
  • Conduct an in-depth analysis of all the one-time as well as ongoing expenses that will accrue as you start and manage your business.

Obtain The License

  1. Once you have made a plan, come up with a unique name and logo for your business.
  2. After this, ensure that your firm has all the required documents to function.
  3. Food safety is not to be taken lightly, and your business will be subjected to regular checks to ensure that you are selling only quality products.
  4. In India, vegetable dealers must receive permission from the Food Standards and Safety Authority of India (FSSAI), without which you have to pay a fine or even terminate your business.

Build Your Clientele

  • The risks involved with safety and quality in the vegetable wholesale business are significantly higher than others as it is meant for direct consumption.
  • While good quality will build you a good client base, even a small error could lead to a complete boycott of your services.
  • Always be transparent about your sourcing and do not compromise on the quality of your produce.
  • Pay equal attention to your sale area and ensure that your storage spaces are always clean and disinfected.
  • Keep a regular and thorough check on the space to avoid any form of pest infestation.
  • The key to building a successful wholesale business is fair pricing and quantity.
  • While it seems alluring to raise your prices, remember that you have a high number of competitors.
  • In a reselling business, quantity often trumps pricing, so be transparent and negotiate your way through costs.
  • Look out for multiple places to sell your products.
  • Do not restrict yourself to retail stores; create a strong network with schools and hotels as well.

Use Technology

  1. With unimaginable advancements in technology, online sale opens multiple avenues for sale.
  2. Invest in a good website that reflects the essence and ethos of your firm.
  3. The grocery business is no stranger to e-commerce, with firms like Amazon and Big Basket demonstrating huge successes.
  4. In an interview with the Economic Times, Hari Menon, CEO, and co-founder of Big Basket stated that the firm hopes to reach a turnover of Rs. 6300 crore in FY2020 from Rs 3200 crore in FY19”.
  5. Technology will also allow you to work with specific clients and offer customised services that guarantee loyalty.
  6. The job is quite dynamic as your inventory will change weekly, depending on the weather, region, and availability.
  7. Keeping yourself informed about the crops in your area will go a long way in ensuring a stable and smart business.

Also Read:

How to Become a Fruit Wholesaler or Reseller?

How To Start An Organic Products Store?

How to Start a Juice Shop? Read the complete Business Plan