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Seasonal demand drives every wholesale purchasing decision.
In fact… it has controlled buying habits for decades. With slight fluctuations here and there but seasonality has been a major factor in deciding which wholesalers succeed and which wholesalers toss last seasons carrots.
Seasonality allows wholesalers to:
- Purchase the correct stock at the correct times
- Minimise waste
- Get better prices from growers
Then leverage that information to optimise purchases year-round.
Let’s take a closer look…
What you will learn:
- Why Seasonality Is Important When Making Wholesale Purchases
- How Price and Supply Is Affected by Seasonal Changes
- How Fresh Fruit Delivery Plays a Key Role
- Smart Strategies To Maximise Profits Year Round
Why Seasonality Is Important When Making Wholesale Purchases
Seasonality for wholesalers means the times of the year when certain produce is readily available for sourcing.
This is important as it dictates how quickly stock needs to turn over, how much to buy at a time and even the price paid to suppliers.
If you guessed that getting this wrong can be catastrophic… you would be correct.
When wholesalers understand the seasons they can better plan their inventory and ordering which allows for:
- Larger sourcing windows
- Better pricing from growers who know you’ll buy more
- Accurate ordering to prevent waste
Knowledgeable fruit and veg wholesalers who specialise in fresh fruit delivery know these windows inside and out. They know when and where to source certain products to ensure quality isn’t lost when demand is high.
Knowing and understanding seasonality can:
- Decrease waste – When you know how much of specific produce you should buy at what time. Less stock will be wasted. Did you know fruit and vegetables make up over a third of total waste?
- Negotiate better pricing – When you buy the produce in bulk during peak season, you should be able to negotiate that sweet profit margin right?
- Stay consistent with quality – Rotating your stock with seasonal produce will mean your customers are always getting the freshest, highest quality produce.
Seasonality may just be the most important detail in wholesale purchasing. Below are the key points that make it so important.
How Price and Supply Is Affected by Seasonal Changes
Take a walk through your local wholesale market during summer versus winter. You’ll see heaps more varieties available and the prices will be cheap.
This happens because of 2 reasons:
- More produce equals lower prices.
- When it’s not in season, people are still going to buy it which creates higher prices due to lower supply.
It’s as simple as that.
Wholesalers that have access to locally grown produce will pay lower prices during peak seasons. But when that produce is imported during the winter months, costs go up.
Shipping, import taxes and lack of competition are just some of the reasons why prices will skyrocket on imported goods.
Not only does seasonality impact price. If you aren’t prepared for the changes in demand, you could be left with too much stock that will go to waste.
And here is the kicker…
Just because it’s not in season doesn’t mean people won’t buy it.
If you supply mangoes, your customers are still going to want mangoes in the middle of winter. But because you have to source from other countries, those mangoes are going to cost you more.
Loyal customers will pay…but others will go elsewhere.
How Fresh Fruit Delivery Plays a Key Role
Without efficient fresh fruit delivery your hard work sourcing the best produce at the best prices is pointless.
Why?
Well imagine ordering the biggest and best batch of juicy ripe strawberries. You could be left empty handed only to watch it go bad before you sell it.
Food waste is a huge issue and much of it comes from poor decisions in the wholesale industry.
According to the UNEP Food Waste Index Report, food loss and waste accounts for around 8–10% of global greenhouse gas emissions.
If wholesalers can harness seasonal trends, they will know exactly how much stock to order and when.
During peak seasons, more deliveries will need to be scheduled. Multiple deliveries per day, depending on stock volumes.
During slow seasons, they’ll know not to order as much which will avoid too many deliveries.
Seasonal demand can make or break your wholesale business. If you don’t have reliable fresh fruit delivery, you’re tossing money away.
Smart Strategies To Maximise Profits Year Round
Enough of the theory. You’re here to learn how you can use seasonal demand to your advantage.
Here are 5 foolproof strategies that successful wholesalers swear by.
Negotiate With Growers
The wholesalers with the best prices from growers are the ones that build strong relationships with them.
Prices should be negotiated well before seasons start. Guaranteeing the grower business when they harvest will get the best prices around.
Source From Multiple Suppliers
Don’t put all your eggs in one basket. One of the most useful tactics to utilising seasonal produce is sourcing from around the world.
Buy from Australia in summer and India in winter. Growers from different areas have different seasons. This will allow you to stock fresh produce all year long.
Study Your Purchasing Data
This may seem like a no-brainer but you’d be surprised at the number of wholesalers that don’t track their purchasing.
Buyers need to take notes. When you order. How much you order. What sells. What doesn’t.
This data will allow you to identify your busiest seasons and predict how much stock is needed and when.
Monitor Inventory Levels Daily
This cannot be stressed enough when it comes to seasonal demand. Seasons can change quickly.
If there is a sudden spike in demand or a category is not selling, you should adjust your inventory levels.
Seasonal demand isn’t set in stone. Unless you’re buying Strawberries in Australia in July. You should expect the unexpected and adjust accordingly.
Invest In Your Delivery Process
People don’t like waiting for their fruit and veg to arrive. And if your fresh fruit delivery is sluggish during peak season, customers will take their business elsewhere.
Make sure your delivery process is tight and invest in a good truck. During peak seasons, you’ll be spending most of your day either delivering or picking up stock.
During winter, you should see a slowdown which allows you to focus on other areas of your business.
Final Thoughts
Seasonal demand plays a huge role in your pricing, your purchasing and your supply.
If you master each season, you will:
- Cut down on waste – You will know exactly how much stock to order and when to order it.
- Increase your margins – You’ll be able to negotiate better prices because you’ll plan in advance.
- Stay consistent – When you know your supply is steady, you’ll know exactly how to schedule deliveries. Meaning you’ll satisfy your customers year round.
Seasonal demand should never be taken lightly. If you stick to your yearly trends, you will always know what to expect and when.
Use the seasons to your advantage and watch your business thrive.
Shipping fruit & veg long distances takes a lot of planning. So should your wholesale purchasing strategy.
