Vegetable business: advantages, disadvantages, recommendations. How to make money selling vegetables and fruits How to sell vegetables and fruits from a car
Instructions
Decide which backyard vegetables are most in demand in your region. Analyze how labor-intensive it is to grow them. Research the selling price of similar products. From this analysis it is easy to guess how much money can be earned for the harvest. This is a kind of your business plan, but it must also reflect possible risks. For example, the risk of bad weather, invasion of harmful insects, diseases affecting the crop of a particular garden. To reduce these risks, it makes sense to grow at least 3-4 types of vegetables so that you can protect yourself from financial losses.
Grow early vegetables for sale. A bunch of carrots in May will bring twice as much as a kilogram sold in September. This - Golden Rule everyone who sells vegetables from their garden. For early harvests, provide a heated greenhouse. The costs of its construction will pay off in the first year, and it will be profitable for at least five years. If it is not possible to build such a greenhouse, limit yourself to a greenhouse. In it you can grow early greens, carrots and radishes for sale in bunches, cucumbers, tomatoes, etc.
Analyze whether there are many cafes and restaurants in the nearby city. The vast majority of them feel the need for rare salads - lolo rosso and lolo bianco, radicchio, arugula - and restaurateurs can purchase many other types with enviable regularity. The agricultural technology for cultivating these vegetable crops is not very different from the agricultural technology for conventional salads, and the cost of a kilogram can rise to 600-700 rubles.
Make an asparagus plot. It is an expensive dessert vegetable, sold in bunches weighing about 250 g, and bears fruit for 2-3 months (in the central region from March to May). You can earn up to 30-40 thousand rubles per season from asparagus, and an “adult” plantation requires minimal care - fertilizing, watering and early spring hilling.
Take care of your sales points in advance. Whatever vegetables you choose to grow and subsequently sell, the profitability of the business will largely depend on the “correctness” of the trading location. In most cases, it is most profitable to sell vegetable products to private owners at collective farm markets, where preferential places are provided for them. But there are exceptions. For example, if you are ready to supply fresh herbs year-round, register, for example, as an entrepreneur without education legal entity and you will be able to sell the goods through stores.
You can start a business selling fruits and vegetables by opening a small stall in the market, or, for example, in a residential area. The success of the business is almost guaranteed, since food products are among the most popular goods in retail trade.
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Services
The vegetable stall service includes:
- retail sales of various fruits;
- individual sale of assorted vegetables;
- accepting an order for the supply of certain products in the required volume;
- assistance to customers when choosing a product;
- consulting clients;
- packaging of purchased vegetables/fruits;
- home delivery of products;
- sale of goods on credit;
- temporary storage of purchased products.
Forms of doing business
A business selling vegetables and fruits at retail can be organized in the following ways:
Format | Description |
Selling from a car | Main features:
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Trade in a kiosk/tent at the market | Main features:
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Street sale in a tent | Main features:
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Sales of goods in the trade pavilion | Main features:
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Shop | Main features:
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A profitable business selling fruits and vegetables can be either at the market or in a pavilion, or on the street.
The choice of one option or another depends on:
- material capabilities of a businessman;
- level of competition in the local market;
- who the entrepreneur is - a reseller or a manufacturer of products;
- having your own vehicle (truck or car);
- personal preferences;
- availability of space for storing goods;
- cost of rent, etc.
Along with retail trade, many businessmen are focusing on organizing a large vegetable warehouse. Its clients will primarily be entrepreneurs. The wholesale business format requires serious investment and experience in this area of operation. Therefore, it is recommended for a beginner to start a business with a small shop.
Relevance
IN modern conditions functioning, the demand for the vegetable business is due to the following factors:
- High demand. Vegetables and fruits are products that are consumed by almost all people without exception. They are products of daily demand. The main range of fruits/vegetables is available to a large number of consumers.
- No license required. To use data, you do not need to obtain special permissions from government agencies. Sanitary control documents can be issued in a laboratory at the market or taken from suppliers.
- Low starting investment. To open a vegetable stall, you do not need to buy expensive transport and commercial equipment, or create a wide range of products.
- High profitability and profitability, as well as quick payback. By selling seasonal goods in both winter and summer, you can count on high profits.
- Minimal marketing expenses. To organize the sale of vegetables and fruits, there is no need to work on recognition.
- There is no need to maintain a large warehouse of products. This is due to the fact that vegetables and fruits have a short shelf life and are not purchased for future use.
Market description and analysis
The main features of the Russian market for the sale of fresh vegetables and fruits:
- Leading regions in the sales of vegetable products: Moscow (18% of market capacity), Moscow region (5%), St. Petersburg (5%).
- According to Rosstat, annually there are 97.8 kg of plant food per capita (excluding potatoes). Monthly consumption of vegetables by one Russian: Bashkiria - 3 kg, Tyumen region - 3.4 kg, Krasnodar region - 4 kg, St. Petersburg - 6 kg. According to the UN Food and Agriculture Organization, in Russia one person eats 124.2 kg per year vegetable dishes. For comparison, for example, in the USA this figure is 122.9 kg, and in China – 321.5 kg.
- Prices for vegetables and fruits sold in the northern regions are higher than in the southern ones. Also, in warm regions their cost is 20-30% lower than in the country as a whole.
- Fees for individual products vary significantly throughout the year. For example, sellers ask for 70 rubles per kilogram of fresh cucumbers in summer, and 200 in winter. This trend can be seen even in the southern regions of the country.
- The volume of domestic products on store shelves is increasing.
- According to sociological research, 85% of Muscovites buy vegetables/fruits one or more times a week.
- Leaders in selling vegetables: potatoes, cucumbers, onions, tomatoes, carrots.
- Leaders in fruit sales: apples, oranges, strawberries, tangerines.
- Muscovites most often buy plant products in department stores and supermarkets (71% of consumers), as well as in markets (10%).
Photo gallery
Share of buyers and frequency of purchases of vegetables/fruits in Moscow Change in the cost of fresh vegetables by region during the year, rub./kg Regions with maximum vegetable sales volumes Vegetable consumption by region (based on data for the second quarter of 2012) Consumption per capita by regions of Russia Share of fresh vegetable buyers (as of June) Share of fresh fruit buyers (as of June) Places for Muscovites to buy fruits and vegetables
The target audience
Description of vegetable (fruit) stall consumers:
Sign | Characteristic |
Floor | Men and women (most often the fairer sex makes purchases) |
Age | From 20 to 60 years |
Social status | Average and below average |
Nationality | Doesn't matter |
Place of residence | Near the retail outlet |
Interests, hobbies | Maintain a healthy lifestyle and play sports |
Characteristic types | For example:
|
Competitive advantages
The strengths of a small vegetable/fruit stall should be:
- good location (away from direct competitors and close to a large number of customers);
- thoughtful product range (taking into account the needs of the local market);
- high-quality and friendly service;
- sale of fresh and ripe vegetables and fruits;
- advising clients regarding the positions of the presented product range;
- correct placement of goods on the display window;
- neat display of the counter;
- competent pricing policy.
Advertising campaign
Since the assortment of the vegetable stall is familiar to the target audience, it does not need advertising. To form your own extensive customer base, it is important to monitor the quality of service and products sold. An entrepreneur must listen to the wishes of consumers and try to bring his service and range to the ideal. Thus, positive information about the store will be spread in the area where the outlet is located, which will attract new customers.
Step-by-step instructions for opening a vegetable kiosk
Successfully opening a stall selling vegetables and fruits requires sequential implementation of the following points:
- Studying the characteristics of entrepreneurial activity in the selected market segment. Including analysis of supply and demand, familiarity with the nuances of trading activities, competitors’ pricing policies, etc.
- Compiling an assortment of goods for sale (taking into account seasonality). Consideration of the rules for their storage, determination of approximate harvest dates.
- Search for potential product suppliers.
- Calculation of a business plan from scratch.
- Determining the location of the kiosk (on the street, in a pavilion or in the market).
- Search and hiring of seller/s.
- Purchase of equipment and the first batch of goods.
- Obtaining a trade permit (if you plan to organize a stall on the street).
Range
When creating a list of products for sale, an entrepreneur needs to take into account the following nuances:
- Demand. The assortment should take into account the needs of potential buyers in the area where the store will be located.
- Richness/diversity. This will allow each client to find what he is looking for.
- Interest. The presented products should attract the attention of the target audience.
- Seasonality. During the cold season, classic goods (for example, potatoes, beets, apples or tangerines) are in great demand. And in warm weather - berries such as cherries, cherries, raspberries, strawberries, etc., as well as watermelons, melons, apricots, peaches, etc.
Basic range
Product groups | Sample list |
Roots |
|
Vegetables (except root vegetables) |
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Fruits sold all year round |
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Seasonal fruits |
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Exotic fruits |
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Greens/herbs |
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Dried fruits |
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Nuts |
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Documentation
The process of registering a small trading business in the field of fruit/vegetable sales involves the following nuances:
- The best organizational form is individual entrepreneurship. Compared to alternative options, creating an individual entrepreneur will save money during the registration of a company and simplify the process of preparing the necessary papers. It is easier to open and run such a business than an LLC.
- OKVED - 47.21 " Retail fruits/vegetables in specialized stores.”
- The optimal system for paying taxes is the simplified tax system or UTII.
- After completing the registration of an individual entrepreneur, the company must register with funds and statistical authorities.
To sell vegetables and fruits, the following documents are required:
- certificate of an individual entrepreneur;
- permission from the Sanitary and Epidemiological Station;
- conclusion from the Fire Service;
- consent of local authorities (in the situation of placing a kiosk on the street);
- certificates for products sold.
Location and premises
Options for choosing a location for placing a retail outlet for selling fruits/vegetables in a stall format:
- high traffic volume of potential buyers;
- location near stalls where goods are sold, the consumers of which are the required target audience (for example, a bakery, butcher shop, confectionery, etc.);
- distance from shops, kiosks, counters and other places where similar products are sold;
- good approach to the shop;
- Availability of car parking nearby.
The optimal stall area is 8-10 square meters. m.
To obtain maximum profit, an entrepreneur needs to organize several retail outlets in different areas of the city.
Practice shows that if it is not possible to store goods at the place of direct sale, then even a small business will need a warehouse.
In this case, fruits and vegetables can be stored in:
- utility room of your own house/apartment (for example, basement, storage room or balcony);
- (with or without heating);
- truck;
- rented premises near a retail outlet.
Equipment and inventory
List of equipment for a street vegetable stall:
Name | Approximate prices, rub. |
Kiosk | 40 000 |
Cash machine | 18 500 |
Scales | 6 500 |
Cart | 3 000 |
Display shelves | 10 000 |
Counter | 3 000 |
Shelving | 5 000 |
Chairs | 2 000 |
Truck (used) | 400 000 |
Equipment: knives, containers, boxes, buckets | 5 000 |
Air conditioner | 20 000 |
cooling chamber | 15 000 |
Other equipment, inventory | 12 000 |
Total: | 540 000 |
Photo gallery
Cargo gazelle – 400,000 rubles Libra – 6,500 rubles Kiosk – 40,000 rubles Cash register – 18,500 rubles
Staff
In order for the stall to operate seven days a week, you will need to hire two sales consultants. Save money on wages a loader, driver and accountant can be achieved due to the fact that their functions will be taken over by the entrepreneur himself.
Basic requirements for job seekers in the vegetable department:
- knowledge of the range of goods and the features of their sale;
- Experience in the retail sector is preferred;
- communication skills;
- goodwill;
- attentiveness;
- courtesy to the client;
- cultural speech;
- neat appearance;
- no criminal record;
- availability of a medical record.
Suppliers
Product suppliers can be:
- domestic and foreign agricultural producers;
- wholesale fruit and vegetable warehouses;
- resellers (private intermediaries between farmers and sellers).
In addition, an entrepreneur can sell products grown on his farm. In this case, it will be more profitable to combine the sale of your own vegetables and fruits with goods purchased externally. For example, if bananas do not grow in Russia, then they should be purchased from private intermediaries or at wholesale centers.
Key criteria for selecting reliable suppliers:
- low prices (discounts);
- good quality of products (there are documents for the entire range of products sold);
- availability of goods in the required quantity;
- providing quality assurance;
- optimal delivery times;
- ability to place a purchase order certain types goods;
- a wide range of;
- good reputation.
The video talks about how to choose the right supplier of vegetables and fruits for your own retail outlet. Filmed by the channel: “Mikhail Balandin”.
Financial plan
Financial planning of a business project for a stall selling vegetables and fruits was carried out on the basis of the following data:
Index | Meaning |
Business format | Small outdoor free-standing kiosk |
Location | Russia, a city with a population of one million in the Central Federal District, a residential area |
Organizational form of business | Individual entrepreneurship |
Stall | Area – 8 sq. m. (there is an opportunity to store goods in the premises of the outlet) |
Specialization | Universal (selling a classic set of products) |
Availability of own production | No |
Suppliers | Wholesale city base and regional greenhouse industry |
Staff | Two sellers |
Operating mode | Seven days a week, from 10.00 to 19.00 |
Functions performed by the manager | Some responsibilities:
|
The target audience | Description:
|
Marketing | A bright sign and several thematic posters are required to decorate the kiosk |
How much does it cost to open?
Capital investments in your own business:
Expenditures | Approximate prices, rub. |
Registration of individual entrepreneurship | 5 000 |
Preparation of documents and registration of permits | 20 000 |
Purchase of fixed assets and inventory | 540 000 |
Rent of land for a stall (for three months) | 90 000 |
Setting up a kiosk | 10 000 |
Marketing costs | 20 000 |
Salary with accruals (for two months) | 85 000 |
Purchase of goods | 100 000 |
Other costs | 10 000 |
Total | 880 000 |
Regular expenses
Every month, to maintain the business, the entrepreneur will make the following expenses:
Expenditures | Approximate prices, rub. |
Rent per place | 30 000 |
Communal expenses | 5 000 |
Renewal of product range | 100 000 |
Salary (with tax deductions) | 42 000 |
Advertising | 3 000 |
Depreciation | 2 000 |
Fare | 5 000 |
Write-off of damaged goods | 5 000 |
other expenses | 3 000 |
Total | 195 000 |
Income
The calculation of performance indicators for a vegetable stall business idea is based on the following data:
Main financial indicators of the project:
Parameter | Meaning |
Average monthly revenue in the first year | RUB 315,000 |
Average monthly revenue in the second year | RUB 378,000 |
Annual revenue for the first year of operation | RUR 3,780,000 |
Annual revenue for the second year of operation | RUR 4,536,000 |
Average monthly profit in the first year | 120,000 rub. |
Average monthly profit in the second year | 163,000 rub. |
Annual profit for the first year of operation | RUB 1,440,000 |
Annual profit for the second year of operation | RUB 1,956,000 |
Business profitability in the first year | 38% |
Business profitability in the second year | 43% |
Calendar plan
Calendar schedule for the implementation of the main activities of the vegetable stall business plan:
Stages | 1 month | 2 month | 3 month | 4 month |
Collection of information about market functioning | + | |||
Studying business features | + | |||
Formation of a detailed business project from scratch | + | |||
Collection of documents for registration of individual entrepreneurship | + | |||
Legal registration of the activities of a vegetable shop | + | |||
Finding a place to place a stall | + | |||
Obtaining permission to locate a kiosk in the selected area (including drawing up a lease agreement) | + | |||
Equipment selection | + | |||
Purchase of equipment | + | |||
Carrying out work on the repair of the stall, its design and installation of commercial equipment | + | |||
Search for suppliers/partners | + | + | + | |
Hiring workers | + | + | ||
Supply of fruits and vegetables to fill store windows | + | |||
Obtaining permits from supervisory services | + | |||
Kiosk opening | + |
Risks and payback
The main risks of a vegetable shop business project:
Risk | Characteristic | Probability |
Losses from product damage (for example, loss of presentation, taste qualities, rotting, withering, etc.) | To prevent this risk it is important:
| High |
Big competition | Main competitors:
In order to achieve success, an entrepreneur must take care of developing the competitive advantages of his mini-trading enterprise. | High |
High costs of maintaining a stall in winter | Since a free-standing kiosk must be heated during the cold season to maintain the desired temperature, this leads to increased overhead costs. | High |
Increase in purchasing prices | An increase in the cost of goods may be caused by:
To maintain a customer base, an entrepreneur must adjust the assortment of his store and try to find new suppliers. | High |
Seasonality | It is important to offer seasonal products to the buyer. If, for example, in winter there are no fresh strawberries and cherries, but there are tangerines and persimmons, then they can diversify the range of products. | Average |
The payback period for a small business selling vegetables and fruits will be 9-12 months.
With proper organization, a business based on the sale of vegetables and fruits will be stable. The demand for food is always constant because people need to replenish their vitality through nutrition. Even in times of crisis, everyone finds money for food and strives not to skimp on vitamins, since it is on these factors that a person’s health and the availability of energy, so necessary to ensure a normal level of life, depend. The advantage of this type of business is that opening a small store does not involve the complexity of obtaining permits, obtaining expensive leases and large-scale financial investments.
Vegetable and fruit business
When planning entrepreneurial activity in the vegetable and fruit direction, it is recommended to familiarize yourself with its nuances, which may have an impact on the effectiveness of the functioning of the outlet. When opening it, you need to strive to earn a positive reputation in the eyes of potential clients. To attract them, you should first think through and correctly formulate the assortment range. You won’t be able to earn much by offering several items of domestic products. Its range needs to be expanded to include greens, mushrooms, dried fruits and exotic imported fruits.
The productivity of a business directly depends on the location of the retail outlet and the design of the storefront. It is best to locate a store or stall close to residential areas, in areas with high traffic, but at a distance from competitors.
Seasonal demand and formation of assortment range
The business of selling fruits and vegetables is seasonal.
During the holidays, people buy imported fruits such as bananas, tangerines, oranges and kiwis. In winter, apples and the entire pre-holiday assortment are popular. In the summer, seasonal fruits and berries should be placed on the display case, not forgetting to arrange them in an appetizing way using trays and plastic forms. Strawberries, grapes, currants, raspberries, watermelons and melons will be popular. Vegetables such as potatoes, carrots, beets, onions and garlic are in demand at any time of the year, so the entrepreneur needs to make sure that they are constantly present in the product range.
Business planning
In spring, the cost of goods always increases by 60 percent. At this time, consumers prefer to buy fruits, juices, dried fruits, herbs and the first vegetables necessary to provide the body with vitamins. In the fall, you can count on wholesale purchases from customers for storage in the cellar, so you should include an option such as wholesale in your trading style.
What knowledge will be needed
An entrepreneur must have information about the harvest time of each vegetable and fruit in order to purchase them at a low cost.
When dealing with the question of how to open a vegetable store from scratch, you should study the characteristics of the products, their varieties and storage rules. Such knowledge will allow you to give recommendations to buyers who doubt their choice. Additional information to consumers will help increase the rating of the outlet, since it is always pleasant to communicate with a sociable and competent person who is ready to help with advice.
Suppliers
When drawing up a business plan for a vegetable store, you should include a section on finding a supplier. You should not plan to cooperate with farms, since they offer a limited range of products, the price of which, most likely, will not be loyal, due to the purchase of an insufficient batch of goods, in their opinion. It is recommended to purchase products at wholesale stores, because there you can purchase a wide range at a favorable price, since wholesale prices begin to apply after purchasing several tens of kilograms.
Summer has come, the berry picking season is in full swing and will soon end, so it’s too late to go to Europe this year - sign up in advance for the 2016 season. But this does not mean that it’s too late to make money on strawberries and other berries (as well as vegetables and fruits )!
Selling fruits and berries from a car - business is simpler than steamed turnips
Remember, in the nineties, during the warm season, GAZ or ZIL trucks from the regions came to some Moscow and Moscow suburban yards and sold them at good prices potatoes, cabbage, tomatoes? It would seem that the topic has died since networks and serious business appeared, it is unprofitable to drive one car, and practically no one does this anymore; they transport vegetables and fruits from the regions only to markets. But no, everything new is well forgotten old!
Editorial staff have seen these kinds of berry sellers on the Moscow Ring Road more than once. Our correspondent Alexander went to investigate.
Trading from a car on the Moscow Ring Road in Moscow
Alexander, correspondent IQ Review :
“The guys set up a business of selling from a car at the junction near the Mega Belaya Dacha shopping center.” Strawberries are sold by citizens of southern appearance in cars with license plates from the Vladimir region. Strawberries are sold already packaged in glasses and baskets - without a steelyard. Most likely, there are about 400 grams. The asking price is 100 rubles. Considering local prices, it's not very expensive, but not too cheap either. In the Moscow region, strawberries on the market can be bought from 150 to 300 rubles per kilogram. In general, it depends on the appetite of passing drivers and the huge flow of traffic.
We conducted a mini-survey of drivers and passengers: are they interested in spontaneously purchasing strawberries on the highway?
Elizabeth:
“They are standing on the road, this berry has absorbed all the smoke from the exhaust pipes during the day. I won’t buy one for myself or my husband.”
“I won’t take from blacks. It is unknown what she is like. It’s better to buy from the Russians at the market.”
Alexander:
“I would buy it, but I don’t eat it unwashed, there’s nowhere to wash it, and there’s no point in taking a glass home, it’s cheaper in a tent near the house. It seems to me that the positive thing is that it’s completely fresh, they probably bring it from the state farm every day, the Zhiguli won’t fit much, everything sells out within a day.”
Business plan - how much you can earn from it
In this business, everything is very simple and primitive: no taxes are paid, the “rent” of the place is free. The legal situation is curious: the traffic police are not involved in illegal trade from cars. The police can only “catch” the guys during a joint organized raid. Maybe they pay extra to stay in one “fat” place, but theoretically this is not necessary.
So among the expenses we have the purchase of goods and gasoline.
Purchasing berries in bulk in Moscow is possible at vegetable warehouses, via the Internet on specialized websites (Agroserver, Agrobazar) or at the Lenin State Farm. You can still go to the nearest southern regions, to villages, and buy them from farmers there.
Wholesale strawberry prices this summer from 80 to 130 rubles per kilogram .
They sell a kilo for about 250 rubles.
Thus, if we sell 100 kilograms per day, we get revenue of 25 thousand rubles. Of these, expenses—purchase, packaging, and gasoline—up to 15 thousand. With good trading, making tens of net profits per day is realistic. Over the course of the season, the Zhiguli purchased from them will at least pay for itself.
If you live in Moscow and want to try to make money by trading berries, you don’t even have to invest anything, you just need a big bag and patience.
In June, berry picking begins at the Lenin State Farm. You can come there and sign up for the collection. They pay in kind - 10% of the collected berries (this is not Finland). You can also just buy a berry and try to sell it at retail from your car. Sales department phone number 8-495-728-34-13.
The editors remind you that such trading from a car is illegal, and is not responsible for the actions of impressionable readers. In a good way, to sell vegetables, fruits or berries from a car you must have documents: at a minimum, phytosanitary certificates for goods (issued by the supplier), a medical book, you must be registered as an individual entrepreneur or LLC and pay taxes, not even to mention the fact that the laws of the Russian Federation do not allow you to just become anywhere and trade - non-stationary trade is regulated chamber of commerce of the municipality.”