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Long post.Thinking about hauling watermelons.
Ok, so I am home after a long trip from san Francisco..I try to do more administrative stuff when I am home.Just when I got my authority, a Landstar BCO was giving me leads on shippers who needed power only or loads moved.The guy gave me 6 leads.I then started making cold calls with what I can offer.Out of 6 shippers/agents I called, 4 was a “no go” and the other two said they were just slow and they were not contracting any independent trucks.I just don’t know why, but the guy gave me a lead for hauling military freight.I wondered why he did that because, with most of these military contracts, you need a 100k bond or 10+ trucks etc..
I then talked to another independent who parks next to me at the yard.He had some military load going to CA.He said he had to put a 100k bond to get that contract.It was quite confusing but he gathered all his independent friends to put up that bond and when he gets a load he just distributes it among them.I still wasn’t clear on that.It also seems these Landstar Bcos are giving me leads without knowing the requirements or what is involved. I was also telling my brother about this other lead I received from a friend of mine who is a manager at Publix.This guy has been selling watermelons on the side for the past 4yrs.He bought a UHAUL truck and trailer and gets his watermelons from south Florida. His sale is on street corners, and this is his part time gig. He was telling me if he had a CDL and was independent, he would make one hell of an income doing what he does.I then asked him about the business. Before I start making cold calls to farmers and restarurants, please shed light on me trying to solicit for business in this industry.He told me to call “Cherry Albitron Farms” in Cordell, Ga.This farmer grows mostly watermelons.With a down payment or whatever, he can grow any type of watermelon that I request.The watermelons are being sold for $2.50-3.50/each.1500 watermelons will fill a trailer load.1500 pieces multiplied by an average of $3.00 is $4500.I will have to get crates and the watermelons will be stacked side by side along the trailer with no tarp. I then find a restaurant in Biloxi, MS to buy the truckload.I was going to make a lot of cold calls this morning because a truckload of watermelon would be $7500-$8000.With $400 in fuel for a roundtrip run, my profit would be around $3,000.Just imagine, making $3000 for driving 800 miles.That is $3.75/mile. I was telling my brother that every damn idea has either a gate keeper(regulations or a freaking broker) or a door closed.I was hoping to contact about 10 SMALL restaurants to distribute that truck load to. BIGDIESEL and some of you independent reefer haulers, please shed some light.I am not just hauling but I am having them planted and buying them and selling.Not just Biloxi but the Georgia Farmers Market is also right around the corner to investigate.Please don’t tell me I need to have a broker’s freaking licence to sell to a small restaurant.I know all about machinery and driving vehicles on my stepdeck but nothing about fruits. |
Just a few answers.
You need(don't be caught without it)a business license and registered with the state the "buyer" is domiciled. You can deliver to any state. When you purchase the "food product" you assume the liability when you sell it. Something is wrong with it you're the first party they go to. Most restaurants operate under contract with one (or more) food service providers. If they buy outside the provider they may lose the contract. Many "sellers" of food products operate under end user agreements. Money can be made in it but there are many regulations to be followed. |
I've thought of doing this as well, only with other commodities (not food). I'd sell it myself or partner up with some one who has a location and do it on a consignment type of deal.
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Why would a restaurant need (or want) a truckload of watermelons?
If you think you're going to get roadside prices selling the entire load at once, you're fooling yourself. |
Would the farmer have his crop insured against weather like drought, excessive rain etc..? If not then you must buy your own or take the entire risk of losing your money to "an act of god". I'm also wondering what an eatery would want with an entire truck of watermelons. You might get away with a few here and there to small places but most large, chain ones broker all of their food from one vender. You might get lucky but I'm thinking no.....
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Originally Posted by jonp
(Post 466089)
Would the farmer have his crop insured against weather like drought, excessive rain etc..? If not then you must buy your own or take the entire risk of losing your money to "an act of god". I'm also wondering what an eatery would want with an entire truck of watermelons. You might get away with a few here and there to small places but most large, chain ones broker all of their food from one vender. You might get lucky but I'm thinking no.....
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Originally Posted by Rev.Vassago
(Post 466088)
Why would a restaurant need (or want) a truckload of watermelons?
If you think you're going to get roadside prices selling the entire load at once, you're fooling yourself. |
Originally Posted by jonp
(Post 466090)
Cudos to you for thinking outside the box on ways to generate income.
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Originally Posted by henboy1
(Post 466091)
Not a truckload for just one restaurant, but a truckload for a supply of SMALL restaurants along the Casinos strip.The prices the guy gave me is what the restaurants pay for.Then again that was just what he said.The same goes with onions but they all have their seasons and the watermelon season starts around april/may and moves up north.I may be loosing hope on such an idea.Ouch!Gatekeepers and regualtions.
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Originally Posted by chris1
(Post 466093)
Most restaurants order late day for next day delivery. That's why the are supplied by distributors who have product on hand. Again you will be up against end users and/or contracts with distributors.
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