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A chat with a supplier changed how I see local sourcing
I was talking to a guy from Purity Feed on the northwest side, and he pointed out that my shipping costs were eating up 15% of my margin on imported stuff. That math hit different when I crunched it for my own shop, has anyone else found a local vendor that actually saved them money?
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the_stella3d ago
jenkins.reese that 8% number sounds right to me if you're being real about it. The free samples and burlap sacks are nice perks but those don't pay the bills, and if your buddy's time and fuel cost actually cut into that margin then the real savings might be way smaller than people think. Local can work, but you gotta run the numbers cold and not let the feel-good stuff fool you into thinking you're saving more than you really are.
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My buddy runs a small coffee shop downtown, and he told me he was bleeding cash on bags from some place in South America. He found a roaster like 20 miles out of town, and the guy let him try a batch for free before committing. Now his shipping is basically zero since he just picks it up on his way to work, and the coffee tastes better too. He said it dropped his cost per bag by like 8% after he figured in the fuel and time. Plus the supplier hooks him up with leftover burlap sacks for decor, which his customers love.
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jenkins.reese3d ago
Wait, are you sure about that 8% savings? If shipping was eating 15% of his margin and now it's basically zero, plus he's getting free burlap sacks and better quality, it sounds like he might be saving closer to 15% or more on the whole cost structure.
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