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  1. #1
    Join Date
    Jan 2010
    Location
    Port Hope, Ontario, Canada
    Posts
    66

    Default Large store mark-ups

    Hello,

    I've done all my sales through 4 different farmers markets and a few farm stands. I'm now looking at getting into some larger super markets.
    What is their standard mark-up ? I sell 500gr for $5.50 and 1 pound for $10 at the Farmers Markets.
    I know that it will be negotiable, and the least amount I'm willing to take. I just want an idea before I start soliciting, and what to expect.
    Any advice on entering into this new market ( larger grocery stores ) for my honey would be appreciated.
    Thanks.

  2. #2
    Join Date
    May 2008
    Location
    Snowmass, Colorado, USA
    Posts
    2,497

    Default Re: Large store mark-ups

    I'm like you. Retail by the lb at $10. We run our commercial accounts at $7 lb bottled in our containers. They mark them up to $12-$15 a lb which is about normal.

    Lots of food chains are trying to provide local produce for their customers these days...at least around here. We market a quality product that is packaged for this market. Meet your local managers and give them some honey when you do. Ask them about the procedures as to getting corporate interested. Send whoever the contacts at corporate information about your business and a sample. Don't expect them to be quick about making any decisions. Don't be afraid to call and see how things are going. Also, let them know how your product is packaged, what the wholesale price is and most important how much and when you can supply your honey. Don't commit to more then you have. We let them know that during market season we will not be supplying them but from Oct. to June we can meet the demand. Lastly, you will need a UPC code so start looking at that. We also carry liability insurance...just in case someone swallows a jar or something.
    Life is tough, but it's tougher when you're stupid. John Wayne

  3. #3
    Join Date
    Feb 2008
    Location
    Auger Hole, MN
    Posts
    433

    Default Re: Large store mark-ups

    In my region a 35-40% markup from wholesale is typical in grocery. Wellness where bee pollen or beeswax candles can be sold is 100% markup.

  4. #4
    Join Date
    May 2005
    Location
    chilliwack, bc
    Posts
    635

    Default Re: Large store mark-ups

    Quote Originally Posted by Dancing Bee Apiary View Post
    I sell 500gr for $5.50 and 1 pound for $10 at the Farmers Markets.
    that makes no sensce at all. did you mean to say 1 kilo for 10$?
    Will Gruenwald Chilliwack BC

  5. #5
    Join Date
    Jan 2010
    Location
    Port Hope, Ontario, Canada
    Posts
    66

    Default Re: Large store mark-ups

    Yes, I meant kilo. I'm still not used to thinking in metric.

    The prices I mentioned are a bit on the low side, and I planned on an increase this season, ( about a 5% hike ).

    The large stores here price a kilo jar around $10-$11. So if they expect a 40% mark up I'll be letting a kilo jar go for about $7.50 If I can get that I'll be very happy.

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