Farmers and other grain producers have been benefiting from the advance in marketing techniques and communications to easily sell bulk grains to large clients and maximize revenue. However, if you’re fairly new to the market and are looking for ways to sell wholesale grains, this blog article is the right one. We’ll see where businesses go to buy bulk grains, and what are the pros and cons of selling to big and to retail customers.
How to Sell Bulk Grains?
As any salesperson will tell you, selling is an art. In recent years, new technologies have helped businesses find new ways to offer their products both internationally and locally. Let’s go through the main things you need to do before you start to sell bulk grains:
- Identify the right clients. Good market research should include finding the proper audience to sell to. Some of the businesses that buy bulk grains include grocery stores, animal feed manufacturers, restaurants, and bakeries. When you’re planning your business’s marketing efforts, do it with the client in mind. What online channels are your clients using? Are they buying wholesale or retail? What key benefits and unique selling points can you offer them? These are all questions you need to answer to improve the process of selling bulk grains.
- Choose the right products. Most companies focus on high demand products or ones that are easier to grow. Smaller enterprises might opt for types of grains that are easier to store as grain storage costs can be a big expense.
- Create a pricing strategy. Usually, wholesale prices are lower than retail. Consider giving discounts to returning customers and clients who buy large quantities. Also, research the rates of your competitors. Check out the commodities futures market to see how prices are moving worldwide. This might give you an idea of how harvest is going and what are the market expectations.
- Build relationships with partners and potential customers. There are lots of businesses that require large quantities of grains for their operations. If you build long-term relationships with such clients, your marketing and advertising efforts come at a lower price. Trade shows, food co-ops, and networking events are great opportunities to establish connections with valued customers.
- Use traditional and digital marketing techniques. Having a professional website and an eCommerce solution can bring you a step ahead of other competitors. Selling bulk grains online is becoming more popular. Additionally, it can connect you with potential clients from all over the world. Make sure to choose the right marketing channels. There’s no need to invest in content for every social media platform. Pick the right ones for your business.
Key takeaway: A business can sell bulk grains to a variety of large customers. Selling in bulk has advantages compared to selling packaged grains in small quantities.
Where to Sell Bulk Grains?
Before you start harvesting grains, you might want to know where and to whom you can sell them. A lot of deals in that niche are struck even before the grains are harvested. Here are a few ideas of where to sell bulk grains.
Food Co-ops and Local Grocery Stores
Local grocery stores can be good clients to sell grains to and a lot of farmers benefit from that opportunity. A lot of shops prefer to sell locally-produced goods. Furthermore, more and more people are striving to implement eco-friendly practices in their daily lives. This means you don’t need expensive packaging to sell to retail customers. Instead, they might prefer to buy in bulk. Keep in mind that food co-op customers typically prefer to buy organic whole grains, so consider applying for organic certification and accreditation.
Restaurants and Bakeries
Refined and whole grains are ingredients in many recipes. That’s why the food service industry can be a source for many clients. Keep in mind that the restaurant industry usually requires a large variety of grains. Additionally, they usually stock smaller quantities of grains that have a shorter shelf life. A bakery business requires mostly refined grains such as different types of flour. If you want to be a major supplier for these businesses, consider investing in flour mill equipment.
Online Marketplaces
Many websites allow businesses to list their products in exchange for a commission on every trade. This can be an additional eCommerce channel. Marketplaces such as Amazon or eBay attract mostly retail customers. They are excellent if you have packaging equipment and can offer smaller quantities of grains. There are lots of niche B2B-oriented marketplaces, such as BlueCart. They connect businesses from a variety of markets.
Distributors and Intermediaries
The supply chain in the food industry includes a lot of middlemen. You might consider doing business with intermediaries as they might offer solutions related to logistics and packaging. Furthermore, distributors already have established partnerships and contracts with many different clients. Therefore, you might be able to sell your full stock to distributors even before the harvest is done.
Pros of Selling Bulk Grains
There are numerous advantages to selling bulk compared to selling small packages of grains. Let’s check the main pros to sell bulk grains:
- It’s time-saving. As there is no need to package grains in smaller quantities, selling in bulk saves time and has lower operating costs. Furthermore, as there are fewer daily operational tasks like talks with retail customers, you need fewer employees. This makes your company more efficient.
- Higher cost-effectiveness. Even though large quantities of grains sell at lower prices than small packages, selling grains in bulk can be a cost-effective way to do business. If you have the storage capacity, you can even buy grains from other producers when the prices are lowest and sell them to clients at a higher price.
- Communication with a few large customers. If your company is B2B-oriented and sells bulk grains to large clients, you don’t need to invest much in customer relationships. Furthermore, a good partnership with a few big clients can help you establish new business growth opportunities.
- It’s eco-friendly. Selling in bulk means little to no packaging. Ergo, less waste, and a lower carbon footprint.
Cons of Selling Bulk Grains
A good business owner will take into consideration both the pros and the cons of selling bulk grains. Allow us to share some of the drawbacks to consider:
- Extensive storage requirements. If you sell bulk grains, you need to have a lot of storage space. Building silos and maintaining optimal conditions can prove to be a big investment.
- A much smaller pool of clients. Very few businesses have the storage capacity to buy in bulk. Most restaurants, bakeries, and other food industry companies only supply bulk quantities of ingredients with long shelf life and ones they use a lot like flour. This means it might be difficult to sell bulk grains to a lot of customers as they require storage capacity.
- Transportation difficulties. A lot of clients might prefer the transportation to be handled by your enterprise. This means you might need to invest in trucks and other equipment needed for the logistics of large grain quantities.
Frequently Asked Questions about Selling Bulk Grains
A lot of farmers and other businesses have struggled with the rapid development of marketing. Therefore, you might have additional questions on the topic of how to sell bulk grains. Let’s check some popular ones.
What Types of Grains Have the Highest Demand?
According to consumer data, the most consumed grains in the US are wheat, corn, rice, oat, barley, and rye. Their demand comes from both the food industry and the animal feed industry.
What Types of Grains Are Easier to Sell?
Naturally, the most consumed grains are easier to sell as the demand for them is higher. However, you might consider producing less popular ones as a lot of companies might focus on popular grains. If your business has packaging capabilities, you might consider packaging grains in small quantities. A lot of retail customers are looking for organic whole-grain breakfast options and you can easily sell them online.
Can You Sell Bulk Grains Online?
Most certainly! Bulk grains can be sold online both on marketplaces and on your eCommerce website. Keep in mind that the vast majority of clients ordering online are looking for small quantities. You might have more success offering small packages of grains.