Status 4/21/02 - Salvage Groceries as a Homestead Business (Income - General)

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Sales during first four days (two unofficially open, two officially open) averaged a bit over $108 a day. About half my goal of an average of at least $200 per day, but still not discouraging. These were drawn from classified ads in the local shopper's guide only on the order of 'we are coming' and 'we are here'. Large (quarter page) shopper's guide ad appears next Tuesday evening and will be a more telling factor.

(Plus, initial stockage [including what is still down in the other building] was $7,867, so I have recaptured over 5% of it.)

Response has been very favorable. A couple of in and out just to lookers, but almost all have purchased something. After I rang up one woman's purchase (two of the plastic bags worth) she said I must not have charged her enough. I told her she was just use to normal grocery store prices. Another woman said she planned to stop by here first before going to the regular grocery. One woman asked if I carried milk. My cows were grazing in the area behind the building so I pointed out the back door and suggested she talk to the woman in the black and white dress (my Holstein). Milk is too perishable for me to want to handle, plus I wouldn't have a high volume of repeat traffic.

Gracie Tindell came by yesterday. She is very well known in the area and writes one of the neighborhood news columns in the weekly county paper. Through going through the badly dented cans boxes ($.25 each), she left with two banana boxes mostly full for less than $35, plus I changed tires for her for a flat. I suspect she will give me a glowing review in her column as I am 'in Gracie's good graces'. Word-of-mouth advertising like this is not only very effective, but also very inexpensive.

Passed state inspection fine with the exception of I have to have a monthly pest control treatment program - mostly for ants. Have arrranged for that to start next Monday.

-- Ken S. in WC TN (scharabo@aol.com), April 21, 2002

Answers

You have the formula that works for your market. Keep the success rolling.

-- Jay Blair in N. AL (jayblair678@yahoo.com), April 21, 2002.

Wished I lived closer.

-- Nancy (nannyb@huntel.net), April 21, 2002.

That's great Ken! Thanks for the up date.

-- cowgirlone in ok (cowgirlone47@hotmail.com), April 21, 2002.

As you are posting your finances, which will be a good indicator of how your endeavor fairs based on inventory. I have wondered as to how you view the empty pallets that you received. Are these carried as just a loss of $9 and something (initial cost) or do you calculate the loss from stock/inventory not in those pallets, which would be a lot more (perhaps an average based on what you received in the other full pallets).

-- BC (desertdweller44@yahoo.com), April 21, 2002.

I was wondering how it went! As always, best of luck and good thoughts and prayers are with you! Did you end up postponing the grand opening or is it still on?

-- Karen (mountains_mama2@hotmail.com), April 21, 2002.


BC: I assume you are referring to the pallets from Publix on which the boxes are only about half full. They cannot be treated as a direct loss. On these I will break even at best. I have written to the wholesaler expressing my disappointment with these pallets and told them I will refuse any pallets from Publix in the future.

Karen: I reworded the ad from a ‘grand opening concept’ to just a ‘we are now open for business concept’. Future advertising will be mostly weekly classified ads point out prices on selected items, with an occasional larger block ad. The locals read the classified ads and they are far cheaper than blocks ads.

From what has been unboxed so far, there were about seven boxes worth of items which cannot be sold. For example, a box cut in a cereal box in which the inner package was also cut. If not, the box can be taped. There have been about four boxes worth of cans too dented to sell. On these first two categories, the guy helping me get set up took them home. Also about another five boxes of cans sellable, but too badly dented to put on the shelves. These are the ones I priced at $.25. I would guess about five percent of the inventory is dented or dinged (e.g., damaged boxes).

Most items looks like new. Apparently received some cans because the label was put on upside down. On another full box of Hamburger Helper it appears the manufacturer’s top sealer didn’t work properly so they didn’t seal. Have several boxes worth of green ketchup as it is being discontinued. One item I have five or six boxes of is “It’s Pasta Anytime.” Not sure why as it is an item just now appearing in supermarkets at least locally.

I won't be purchasing for a while, so apparently will miss the post- Easter candy boxes. Was told it takes about 6-8 weeks for these to show up at the wholesaler.

Am running a classified ad in the next Shopper’s Guide letting gardeners know I will buy their excess sweet corn when it comes in season. Will pay between $.75 and $1 a dozen, with resale at $1.50 a dozen. This will mostly be a ‘get them there’ venture in hope they (both sellers and buyers) also buy something else. One of my neighbors (who has since died) annually planted several acres of sweet corn. It wasn’t unusual for a regular to call asking for 50 to 100 dozen ears at a time.

-- Ken S. in WC TN (scharabo@aol.com), April 21, 2002.


I'm glad to hear that things are going well Ken. I'm sure that being 'in Gracie's good graces' will help a lot with promotion. Thanks for the update.

-- Murray in ME (lkdmfarm@megalink.net), April 21, 2002.

Congrats Ken

I may want to try this on a small scale, in a year or two.

You should consider using your patrons wisdom for a slogan, something like this : Bring your spare change, and shop us first, THEN go to the market, but take your purse.

-- Rick in Southwest WV (Rick_122@hotmail.com), April 21, 2002.


I buy from a store like yours in the area and one sells the open cereal by putting several boxes into a clear plastic bag and selling them for a dollar. Ive never bought it this way but someone does. also we buy our dog food this way its one of the stores best sellers they pour it all together and bag it and sell it by the pound 20 cents a pound in ten pound bags. Here is a thought why dont you contact a local pig farmer and see it they migh be intrested in buying your unsellable stuff?? good luck

-- ronda (the johnsons@localaccess.com), April 21, 2002.

Sure is interesting Ken, I'm glad you keep us posted. Why on earth don't you grow a few acres of sweet corn yourself?? Even half an acre! Same goes for spuds, pumpkins, tomatoes, you know easy stuff even a guy like me can't kill. Find your local abitoir or butcher and buy his left over fresh meat and sell it as frozen might be an idea. I'm off to talk to my butcher about selling his sausage pies etc, at our farmers market tomorrow. We'll sell our lamb and maybe cheese (if we milk some sheep and everything works out at the factory) We'll add on thier cheese too. Your inspirational Ken keep it up.

-- Ross (amulet@istar.ca), April 21, 2002.


I was just wondering how things were going with the "outlet", Ken! Sounds like a darn good start. As those shoppers tell other shoppers, and word gets around, you will be one busy guy, I'm sure. Keep us updated! Jan

-- Jan in Co (Janice12@aol.com), April 21, 2002.

Wonderful!!

-- Christine in OK (cljford@mmcable.com), April 21, 2002.

WHY COULDN'T I LIVE CLOSER. I'M GLAD EVERYTHING IS COMING TOGETHER.GOOD LUCK AND GOD BLESS.

-- LORETTA IN IOWA PARK,TX (JOHNRAY@WF.NET), April 22, 2002.

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