Received first truckload of groceries. To refresh your memories on this, I am opening what is commonly called a salvage grocery outlet (see past threads under the Income – General category for background). The groceries come in banana boxes which are 16”x20”x10” and are pretty well full of something. You pay so much per box, which in my case was $9.50. On first two pallets were four boxes containing nothing but a broken styrofoam cooler. No return policy so with the treasures came trash. Did send them back to the wholesaler with a message via the driver that there isn’t much of a market in Waverly for broken styrofoam coolers.

More dented cans than expected, but so far less than two banana boxes of throwaways (and two cans were pink salmon which my cat will get). Lots of cereal (which is a money loser if an entire box since it doesn’t resell for enough to return box cost). So far, about twelve boxes of marshmallows. Four or five boxes of Swiss Miss chocolate mix. Lots of large drink containers and small sipper packages. Probably a half-dozen boxes of candy and food bars so far. Also about the same number of fruit cups. Some pet food and supplies, including rabbit feed. Almost all name-brand merchandise. Overall, a pretty good assortment without a lot of non-desirables in it, but the customers will have to make that determination.

Three friends came by to help unbox and shelf. Realized after they left most of it will need to be taken off the shelf in be put back in boxes by type (e.g., canned peas, canned green beans, pork & beans, asparagus, etc.) Then the boxes so far of loose cans and bottles can be sorted into them. Once a type is all together, I can determine shelf space needed.

So far, have only gone through about 2/3rds of the load.

Second load is scheduled for Monday. Most of it will be stored in a building down the road a bit.

Pricing is really going to be a bear even with the grocery wholesale price guide I have. I suspect pricing will become more of an art than a science.

My schedule is to open to the public on April 17th (less than two weeks away) with the grand opening on the 24th.

I am advertising I expect to be priced at 20-50% less than normal retail. That provides a good bit of leeway on my pricing. For example, I am going to price a can of DelMonte peas at more than what Save-a-lot retails their store brand for.

There is another salvage groceries outlet in McEwen, about ten miles away. Seems like it use to be something like Pat’s Dents and Dings. Ad in the Shopper’s Guide is now for “Dirt Cheap Discount”. Dumb name to me as it isn’t descriptive of what they carry and customers will be disappointed if what they sell doesn’t meet the promise. I still like my name of Waverly Discount Groceries. It says where it is located, what is sold (groceries) and that they are priced below normal retail.

-- Ken S. in WC TN (scharabo@aol.com), April 05, 2002

Answers

How about Waverly's Cost Less Groceries. Do the stores in your area run weekly specials and if you intend to match or compete with these weekly specials, then pricing may become a very time consuming endeavor.

-- BC (desertdweller44@yahoo.com), April 05, 2002.

I'm not picking on the name, it's fine but be sure to highlight the fact your selling nonregular groceries at less than normal retail. I've become a bit imune to the term "discount" or "Bargain". What a cynic eh? "Oddlots" or "special orders" came to mind later for your last question as to what to label your stock.

-- Ross (amulet@istar.ca), April 05, 2002.

You're on a roll, now, Ken! It's like a treasure hunt, never knowing exactly what you'll get, but for the most part, sounds like you will have a good selection of merchandise! Wish I could come to the G.O.! Good luck, and keep us posted on the progress! Jan

-- Jan in CO (Janice12@aol.com), April 05, 2002.

Sounds like things are progressing pretty well Ken. I like the name Waverly Discount Groceries. The title is descriptive and sounds more professional than something like 'Ken's Dents and Dings'. I hope your grand opening goes great. Keep us posted.

-- Murray in ME (lkdmfarm@megalink.net), April 05, 2002.

Stumbled across your site searching for groceries (banana box). Congrats on taking the plunge. I opened 6/93 with my family and a friend that we had partnered in a duplex house with several years earlier. We're in Vermont which has several stores selling salvage grocery +. Most use the 'discount grocery' or 'discount foods' trade name with some local georgraphic identity. California and Florida seem to cater to the fancy names like 'Dents make $ense', etc. Pricing is very much a gut instinct, even in the beginning. You'll find if you try to match or beat everyone you'll drive yourself nuts. You need a fair sense of what things sell for (I did almost all grocery shopping for fifteen years prior to opening because my wife was raising little ones -mine obviously- and we lived 10 miles from the stores and it was easier to stop on the way home from work than go back in with her and kids in the evening. Then your customers will let you know anything that's too high. But don't immediately change it, go check those items out as most often they are comparing to a special or promotion price and you can't always compete with those. Your 20-50% should be off regular price, and that will generally be at or below any special price. Then know where the next grocery store is. If it's 10 blocks or 10 miles, it makes a big difference. Also if you've ever worked Kmart/Walmart you know that shelf-edge pricing is not always regular price (I did for 15 yrs. Kmart). They change labels weekly to make specials look like regular when they are really specials. So sometimes you need to check more than once at least a week apart. Then the biggest thing to remember is that you make your money on the load, not necessarily the box. Too many complaints to your supplier will cost your place in the supply line and that counts big when things are tight. Probably other bits, but that's all that jumps out at me after reading the other comments. Dan

-- Daniel Nelson (dwn531@yahoo.com), May 03, 2002.