Economy Response: Wholesale Salvage Food

By Robert Cyr

As our Nation feels the "Crunch" at the gas pumps (surging well over $4 per gallon in some regions) angry shoppers are looking to cut costs in all areas of spending. Food, being a major staple, is one area where budget minded consumers are paying close attention. As Americans stretch their paychecks food wholesalers are seeing a steady rise in the request for deeper discounts.

Small surplus and salvage grocery stores are opening around the Country promising to offer name brand products discounted at unheard of pricing. This trend is in direct relation to our economy, savvy entrepreneurs understand that consumers are feed up with paying exaggerated pricing. Enter the wholesale Salvage food industry.

Where does this Salvage food come from?

Food becomes "salvage" after it is discarded by supermarkets because it has damaged packaging or nearing expiration. Large grocery stores will ship pallets of salvage food to reclamation centers where it is either donated to charitable organizations or resold to smaller retail outlets. Due to its Salvage nature often name brand products can be purchased at a fraction of the original wholesale price and thereby offered to consumers, once again, in a discount setting.

End resellers will buy this food sight unseen in whats called a "Banana Box". There are typically 24 banana boxes filled with salvage food on a single pallet. Banana boxed pallets will range in price from a low of $168 up to $288 depending on factors such as item quantities and condition.

To meet the demand of our slow economy individuals are opening discount salvage grocery stores at an ever increasing rate filling shelves with grocery items and aisles with budget minded consumers.

Within the last few weeks I have spent countless hours on the phone with salvage food distributors who have all reported the fact that "phones are ringing off of the hook" as the demand for wholesale salvage groceries has increased at least 50% over last year.

What is your experience:

1. Do you operate a salvage grocery store?
2. Have your sales increased due to consumer demand for lower pricing?
3. Are you experiencing difficulty in finding salvage groceries on a wholesale level?

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The Closeout Industry - A wealth of information centered around wholesale closeout merchandise. Author and consultant, Robert Cyr has educated thousands of entrepreneurs offering advice relating to sourcing name brand merchandise far below wholesale pricing.