How to deal with seasonal produce

[keelba]

Hi all. I am in the very early stages of trying to start a business. It is based on pickles. There's a little bit more to my USP but that's not important for this discussion.

I have lots of questions but my most burning questions have to do with the main ingredient of my product: cucumbers.

1) How do I go about finding a good source for this product? Being small starting out I don't want to buy several pallets worth of cucumbers (although I'd like to get to that point). Can I get wholesale prices at a smaller level until I can grow big enough to buy in larger bulk? I'd really like to go organic if possible, making this even harder. It is currently winter time here in north Texas and Farmer's markets aren't really happening yet so I haven't gone that route yet. I can try to talk to distributors but would really like to sound like I know what I'm doing before I call them.

2) How do I deal with the seasonality of it? Cucumbers are typically harvested in late summer/early fall. Does that mean I have to wait until July to buy my cukes and then try to guess how much I'll sell until the following July? Once they're pickled they should keep for quite a while but how do I deal with this problem?

I am trying to create my business plan but sourcing ingredients is one of my biggest problems right now and something I have no experience with at all. Any advice, help you could offer would be greatly appreciated.

--Kevin

 

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[Jonathan Polley]

If you want seasonal produce. Why not look at what is in season at other times of the year and pickle different things throughout the year.

Pickles will obviously keep and you will have a wider range of product.

But honestly, I didn't realise cucumbers were seasonal, I can get them all year round here. I assumed they are grown primarily in greenhouses.

 

[applesack]

Go to this place or similar and ask them who the big hydroponic produce growers are in your area. The growers will love to give you a huge tour and tell you everything (in my experience). Some will even start a small side crop of what you will buy since you will probably give them better markup than the grocery and institutional buyers.

 

[G-Man]

Can I get wholesale prices at a smaller level until I can grow big enough to buy in larger bulk?

Short answer is no. You might get creative and find someone that buys in large amounts and try to buy the excess.

How do I deal with the seasonality of it? Cucumbers are typically harvested in late summer/early fall. Does that mean I have to wait until July to buy my cukes and then try to guess how much I'll sell until the following July? Once they're pickled they should keep for quite a while but how do I deal with this problem?

Seasonality is a part of the food business. It just is. That said, and I'm guessing based on your other posts that you're probably talking about artisanal/specialty pickles, you're worried about the wrong things.

The most important thing right now is proof of concept. Make a sale. Find out if there's a market demand for the product before busting your chops worrying about price fluctuations in crops. With flavored food products, you'll change flavor formulations a million times. Get the flavor right, then worry about scale in purchasing (unless you're using some super exotic or prop 65 ingredient)

If you can sell at a price point with 50% plus margins, there's probably a market in small batch to start with until you can get your business to a packer that has the ability to purchase raw materials at scale.

 

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[RMarques]

Don't bother going to farmers markets or distributors.
Find a wholesale terminal.
Wake up ridiculously early and go there.
Walk around and learn. Meet people. Ask questions.

Here's somewhere to start:
Tenant Directory
SAWPM | State-of-the-Art Warehousing Solutions for Cold Storage and Produce

 

[applesack]

The most important thing right now is proof of concept. Make a sale.

This has got to be the most foundational entrepreneurial advice ever, "Make a sale!" I love selling so much...

Find a wholesale terminal. Wake up ridiculously early and go there.
Walk around and learn. Meet people. Ask questions.

Aren't these places great? They are like the heart of all commerce. I love wholesale auctions too.
You will run into some lame-a$$, cagey bastards, but you will also meet some amazingly helpful people.

 

[keelba]

That's great advice. Thank

Go to this place or similar and ask them who the big hydroponic produce growers are in your area. The growers will love to give you a huge tour and tell you everything (in my experience). Some will even start a small side crop of what you will buy since you will probably give them better markup than the grocery and institutional buyers.

That is amazing! The link you gave me is to a place about 1 mile from where I live.

I will see what they're all about and if they can help. Thank you very much.

 

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