How to Sell Wholesale Spices
Whether you're a gourmet chef or someone with a passion for the way flavorings liven food, getting into the wholesale spice business may just satisfy your insatiable appetite for an interesting career. You'll need manufacturer contacts, many of whom are located in places that are nearly as exotic as the leaves, powders and organics that will find their way into your business plan. Plan to make sacrifices---such as hustling off to India, South America or the South Pacific in search of new herbs and botanicals to set your company's spice line apart from every other wholesaler on the planet.
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Things You'll Need
- Business plan
- Marketing plan
- Funding
- Manufacturer contacts
- Warehouse facility
- U.S.-mandated shipping and importation licenses and permits
- Contracts with suppliers
- Computer
- Internet connection
Instructions
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Construct a business plan that outlines your vision of how your wholesale spice company plans to operate. Look for funding from banks, capital investors or investor groups, so there's enough cash to open a warehouse or offices from which your company will operate and where your product will be housed. Name your company and protect your personal finances from those of the business by incorporating.
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Choose the market on which you'll focus your efforts. Obtain inexpensive, average quality spices from your source and mark them up for retail distribution at stores ranging from big box stores to chain supermarkets, or penetrate high-end food boutiques where your profit margins will hang on higher-quality spices. Conversely, turn to the Internet by commissioning a website so you can sell directly to consumers. Ask your advisers (e.g., lawyer, mentor, partner, accountant) for help if you are undecided.
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Search for suppliers once your niche market has been nailed down. Use the Internet and search engines to find suppliers outside and inside the U.S. Start with the links below and compare criteria such as pricing, the best drop ship offers, discounts for quantity buys and dating terms that allow you to receive product now and pay for it later to choose a domestic or overseas supplier.
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Enter into contracts with suppliers after your research is complete. Learn protocols involved in buying and receiving food products from outside U.S. borders if you're taking the overseas route. Factor in time; there's a dramatic time difference between container shipping (relegating product to months in the cargo hold of a ship) and air shipments, which are extremely costly. Ask for help learning the ins and outs of the paperwork required get spice shipments into the U.S. Consider hiring a customs broker on the ground at a port of entry to expedite the offloading of your product. Check community resources to learn what permits and licenses you'll need to inventory and ship spices to your customer base.
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Launch a multi-channel marketing strike. Advertise in food trade magazines. Place point-of-sale units at retail locations and provide signage to enhance your presence. Design a promotion to get the name of your company on the lips of spice lovers. Hire a sales force to carry your lines. Find ways to get public relations by contacting cable TV cooking show producers. Pitch the idea of appearing in person to put a little spice into the lives and recipes of viewers.
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