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  1. #1
    Join Date
    Nov 2009
    Location
    Columbia, MO
    Posts
    117

    Default Grocery Store Profit Margins

    Over the years, I've sold honey many ways...parked along side the road, flea markets, farmer's markets, feed stores, grocery stores, health food stores, gourmet food stores, gift shops, etc. Never bulk wholesale though.

    I've been out of the loop for a few years and I'm curious what percent of profit a typical GROCERY STORE expects to make today from honey sales. I have several local stores wanting to buy my honey and I want to make sure that I price it correctly. I want to make maximum profit, and I don't want to undercut another producer either.

    The last time I sold to grocery stores they expected to make somewhere between 20-30percent profit (not to be confused with mark-up), and usually closer to the higher end.

    What are you finding in your area? Thanks in advance for your feedback.

  2. #2
    Join Date
    Dec 2005
    Location
    Brasher Falls, NY, USA
    Posts
    28,274

    Default Re: Grocery Store Profit Margins

    Set your own price and don't worry about what the store has to make. That's my pov.

    When I started I sold to stores at the same price as they were paying their other suppliers. Now I sell it to stores at a price I like and if they buy it they have no problem marking it up and selling it.

    What their profit is I have no idea. One store adds 100%, most don't.
    Mark Berninghausen
    The answers are the end. The questions are the journey. Journey on.



  3. #3
    Join Date
    Jun 2004
    Location
    Jackson, MO
    Posts
    1,858

    Default Re: Grocery Store Profit Margins

    I sell through farmer's markets, road side stands, flea markets and through wholesale grocery stores. Since I live in a small town and I have a lot of driveway honor box sales, I have a gentleman's agreement with my grocery stores to try and keep retail prices close to what I charge.

    I worked out a deal with the first grocery store to discount my honey about 25% so they can sell it for about what I charge. When I take a load of honey in, my invoice reads my charge to them and a "suggested retail price." Some stores charge a little more than my suggested price when it reaches the shelf. I figure my wholesale price is what I really charge for my honey, then if I sell it, I collect that extra mark-up myself for my time and energy.

    Grant
    Jackson, MO
    Beekeeping With Twenty-five Hives: https://www.createspace.com/4152725

  4. #4

    Default Re: Grocery Store Profit Margins

    most food items are between a 20 and 40 percent margin. most of my stores charge a 35% margin on my product. So if you sell to the store for $3.50lb they will mark it up $1.23 for a sale price of $4.72 or just round it up to $4.99. so you can look at it as a 45% mark up or a 35% margin. Most stores talk in Margin not markup so if you go prospecting you can talk their lingo. I do have a few high end stores that will do a 60% margin and you see the sales difference in volume of sales.

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