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  • #979504
    Fruit n Veg Jr
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    Hi All,

    I am looking to potentially purchase an existing fruit and veg stall for sale. Having never worked in the industry wanted to hear some feedback from those who have fruit and veg experiences? ie Why they would be selling? what is it like to run a fruit shop? the mark up? pros cons etc etc

    the ad states they are in the queen vic market

    selling for 375k weekly takings are 35k have truck and 5 staff, rent 900pw

    thanks

    #1114756
    Just Launch
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    Hi Fruit n Veg Jr,

    I have a little experience in the area. During my uni days I moonlighted as a Fruit and Veg manager for a local supermarket, and then about10 years later became a management accountant for an organisation that managed supermarkets.

    From experience the F&V game is flat out hard. You need a point of differential whether it be quality, presentation, price or range. Having all the above wont work so its important to focus on one. The big boys are really aggressive on getting as much of the fresh essentials market as they can and this could be a reason for selling along with the long hours. Unfortunately its one of those operations whereby the more hours the store owner works, the less they have to pay in wages.

    If you running the business then get ready for early starts and trips to the growers markets as relationships with growers and price negotiating is a core component of running a F&V store. It helps also have to have a very knowledge of size and quality of produce. If you don’t have this knowledge its possible to use the services of a ‘Buyer’ to assist. Sometimes you can get a few stores that band together and share the costs for the ‘Buyer’.

    Mark ups of fruit and veg can range from 25%-40% depending on what your focus is. The better the produce the less price sensitive customers are (although this can also be influenced by the demographic of the location) When pricing you have to factor in overheads, wages, wastage and wrapping and packaging. Wages can run anywhere between 7%-15% of sales depending on your operations size and the labour intensiveness of the presentation component.

    It can be done and it can also be profitable, but you must run a tight ship as any leakage in wage or wastage can kill profit. You can also look at offering impulse buy and gourmet offerings to help keep a healthy gross profit %.

    I hope the above is of some assistance.

    John Whale CA

    #1114757
    Lawyer-Matthew-1
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    Hi Fruit n Veg Jr,

    There are particular legal issues that need to be considered when buying a business. These issues include:

    – The legal and ownership structure of your new business.

    – Ensuring a proper written contract of sale is entered into. The contract needs to cover what each party must do, how much is being paid, when payment must be made, what is being transferred. It may also be appropriate to have various conditions such as cooling off, finance, licensing (if requried), minimum trading levels during a trial period, transfer of lease, warranties, restraint of trade and satisfaction of the financials from your accountant.

    – You should know exactly what is being transferred ie business name, goodwill, premises, plant, equipment, stock, permits, licences, supply records, any agreements with suppliers etc.

    – You need to ensure that you are aware of industry and general legal requirements affecting your new business.

    – Ensure all employment law requirements have been met and continue to be met.

    Depending on your individual circumstances there are other specific legal issues that will need to be considered. I am happy to discuss these in detail at a time that suits you.

    All the best with your new business.

    #1114758
    tonyk
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    Fruit n Veg Jr, post: 128703 wrote:
    Hi All,

    I am looking to potentially purchase an existing fruit and veg stall for sale. Having never worked in the industry wanted to hear some feedback from those who have fruit and veg experiences? ie Why they would be selling? what is it like to run a fruit shop? the mark up? pros cons etc etc

    the ad states they are in the queen vic market

    selling for 375k weekly takings are 35k have truck and 5 staff, rent 900pw

    thanks

    Weekly takings are 35k?

    #1114759
    CardsOnline
    Member
    • Total posts: 15
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    Just Launch, post: 128724 wrote:
    Hi Fruit n Veg Jr,

    I have a little experience in the area. During my uni days I moonlighted as a Fruit and Veg manager for a local supermarket, and then about10 years later became a management accountant for an organisation that managed supermarkets.

    From experience the F&V game is flat out hard. You need a point of differential whether it be quality, presentation, price or range. Having all the above wont work so its important to focus on one. The big boys are really aggressive on getting as much of the fresh essentials market as they can and this could be a reason for selling along with the long hours. Unfortunately its one of those operations whereby the more hours the store owner works, the less they have to pay in wages.

    If you running the business then get ready for early starts and trips to the growers markets as relationships with growers and price negotiating is a core component of running a F&V store. It helps also have to have a very knowledge of size and quality of produce. If you don’t have this knowledge its possible to use the services of a ‘Buyer’ to assist. Sometimes you can get a few stores that band together and share the costs for the ‘Buyer’.

    Mark ups of fruit and veg can range from 25%-40% depending on what your focus is. The better the produce the less price sensitive customers are (although this can also be influenced by the demographic of the location) When pricing you have to factor in overheads, wages, wastage and wrapping and packaging. Wages can run anywhere between 7%-15% of sales depending on your operations size and the labour intensiveness of the presentation component.

    It can be done and it can also be profitable, but you must run a tight ship as any leakage in wage or wastage can kill profit. You can also look at offering impulse buy and gourmet offerings to help keep a healthy gross profit %.

    I hope the above is of some assistance.

    John Whale CA

    Hi Fruit & Veg Jr,

    I am in the Fruit & Vegetable Business on the Gold Coast & have been for the last 10 years.

    John has said it all and what he is telling you is right. Honestly, If I were you, I would start off with something a bit smaller scale or find work in a Fruit Shop before you buy your own Fruit & Veg Business.

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