Could this be a business?

mountainannie · Mar 14, 2011

Caveat... NOT for me.. but for SOMEONE

I was in Pricesmart today.. just joined.. love it..

and saw that they have rice in these absolute humongous bags.. ok, they have everything in humongous bags.. but they sell rice in 125 sacs, and on down.

And I was reading on another thread on how the barrels are maybe going to be taxed...

I have always had some reservations about the barrels and lots of thoughts but see that many of the poorest folks here live because they are sent.

So I wondered if there would not be a business in this.. for a business that would buy from Pricesmart and ship via gua gua.. to various places.

I think that most of the bulk food.. like the rice and beans and oil,,., and other things like baby diapers... might end up be much cheaper this way.

of course it would take someone reputable...

but what do you think?

Chip · Mar 14, 2011

I think if the prices were competetive with the almacenes and direct producers that middle men for colmados and the supermecados would be buying there, who knows maybe they are.

mountainannie · Mar 14, 2011

Chip said:
I think if the prices were competetive with the almacenes and direct producers that middle men for colmados and the supermecados would be buying there, who knows maybe they are.

no, you missed my point... it would not matter where the rice and oil and stuff came from, clearly the guy would have to find the cheapest place to buy... but the business would be in taking orders from expat families and then fulfilling the order, getting it to the families.. like the remesa delivery system

Matilda · Mar 14, 2011

Chip is right. All the almacenes sell in bulk and the colmados buy in bulk and mark up at between 20 and 40%. Rice on sale in colmados for 15 pesos a pound for the cheapest up to 20, and you just take any pot you like in and they fill it with oil.

Matilda

Chip · Mar 14, 2011

mountainannie said:
no, you missed my point... it would not matter where the rice and oil and stuff came from, clearly the guy would have to find the cheapest place to buy... but the business would be in taking orders from expat families and then fulfilling the order, getting it to the families.. like the remesa delivery system

Ok I understand now.

dv8 · Mar 14, 2011

mountainannie said:
no, you missed my point... it would not matter where the rice and oil and stuff came from, clearly the guy would have to find the cheapest place to buy... but the business would be in taking orders from expat families and then fulfilling the order, getting it to the families.. like the remesa delivery system

but supermarkets and almacenes already have a delivery system. if you set it up well you may get discounts or buy on credit too.
besides, sadly, i do not find pricesmart worthy interest, nothing seems significantly cheaper there (but then i never once looked at prices of rice/sugar/nappies and other stuff i never buy).
british/american procucts would be something else thou. clearly, you can get anything online these days but many have no means of bringing stuff to DR (no eps type account).

BushBaby · Mar 15, 2011

Am I right in assuming Annie that you are thinking more in terms of offering a service to people OUTSIDE of the country to feed their family members INSIDE the country by ordering from this 'Business' you suggest someone might set up? i.e. Those members earning money outside of the country could stop sending the 'Barrels' but instead order (& prepay) for items to be bought by 'the business man' & then delivered to their family members?

My question to this is ......... would there be enough business in each area to make the Bulk Purchase system cost effective/sustainable? I can see a spin off of this working - liaising with ONE colmado in a locality & putting all orders received from the families abroad through this ONE & negotiate additional discounts for that colmado getting all the business.

I could be wrong but I somehow do not see it catching on because the 'Concept' would have to be sold & this might prove a very difficult selling job! ~ Grahame.

cobraboy · Mar 15, 2011

dv8 said:
besides, sadly, i do not find pricesmart worthy interest, nothing seems significantly cheaper there (but then i never once looked at prices of rice/sugar/nappies and other stuff i never buy).

We buy tour supplies in bulk @ Price Smart. The prices are alittle lower in bulk, but the products can be much higher quality, especially American products in larger quantities.

Most grocers like Jumbo, La Sirena and Nacional I go to don't offer the bulk goods as PM does and the wholesalers that distribute to the smaller grocers don't have the variety and quality import products.

And MA, I suspect distribution and labor costs would eat up any margin you'd have to sell for.

Maybe gift cards that exclude products like alcohol and tobacco would work, or a gift card for specific goods.

Chirimoya · Mar 15, 2011

Supermercados Nacional have mandale.com.do which appears to be aimed at Dominicans abroad, for them to do a 'compra' for their family members in the DR online from their nearest branch of the supermarket in the DR and have it delivered locally.

They also offer 'tarjetas de compra' that can be charged with money online so that relatives in the DR can do their shopping - don't think they offer a vice-free option though.

http://mandale.com.do/mandale/tarjetadecompra.aspx

It would be interesting to know how successful this has been.

mountainannie · Mar 15, 2011

cobraboy said:
And MA, I suspect distribution and labor costs would eat up any margin you'd have to sell for.

Maybe gift cards that exclude products like alcohol and tobacco would work, or a gift card for specific goods.

Chiri,, thanks for the link.. I had no idea that that card existed..

And I can't really imagine that the price of distribution from SD would be more than sending the barrells, could it be? I mean a barrel costs around $150 to send.

Of course, lots of folks send used clothing and toys and such so that would not be replaceable.

It was just that I had never seen such huge bags of rice..

I have had a restaurant owner here tell me that there is no system of wholesale buying for them.. and I do see lots of guys buying in just huge amounts of one sort of food.. clearly for a restaurant or comedor or something.

it was a just a thought ...

cobraboy · Mar 15, 2011

mountainannie said:
I have had a restaurant owner here tell me that there is no system of wholesale buying for them.. and I do see lots of guys buying in just huge amounts of one sort of food.. clearly for a restaurant or comedor or something.

it was a just a thought ...

Thinking like an enterpreneur, MA?:classic:

There really isn't wholesale food distribution in the DR for restaurants. Why? From talking to some food producers they:

1) Don't want to give up their margin, even though they would have substantially lower distribution costs

~and~

2) They just don't trust other Dominicans to sell their product. A wholesaler would offer a half-dozen brands of salami (or whatever) to a potential customer not caring which he bought, and the mfg. wants HIS prand pushed harder.

And what you do see in PM are many restaurant folks buyiong products in bulk unavailable from normal distribution channels. When I had my restaurant in Largo FL I'd make a big run to Sam's Club-similar to PM-every week for things I didn't buy from a wholesaler.

mountainannie · Mar 15, 2011

cobraboy said:
Thinking like an enterpreneur, MA?:classic:

.

yeah.. often i have come up with three or four failing businesses before breakfast!

I just took three empty Mistolin bottles to the guy who sells paintings outiside the supermercado and had him paint them up .. so I can fill them water or sand and use them as door stops..... he charged me 500 pesos which was ok.. but I kept telling him to do more and just see if folks would not be interested. My apartment has windows on both sides and I love the breeze but got tired of hearing the doors slam shut.. ... and yes, of course, i know about the little brown rubber stoppers but ART is better!!

and then of course, there was my suggestion that someone do the honey exports...

the hand embroidered clothes from Haiti....

the Todo Loco Lasagna thing that could be done in a solar oven and distributed via ice cream bicycles...

all I really know is real estate and journalism, but I do keep thinking..!!

Bronxboy · Mar 15, 2011

mountainannie said:
yeah.. often i have come up with three or four failing businesses before breakfast!

Reminds me of Ralph Cramden and his get rich schemes. lol

mountainannie · Mar 16, 2011

well the distribution routes are already there, aren\t they?

Aren't the barrels already delivered to the door?

and if the barrells are going to be taxed... well... surely there is a big margin to work with .. I always thought it was silly to send the stuff, since the shipping costs are really big.. But I understand the mind set behind it. That the folks know that the money goes to food, diapers, and not to the Banca or the booze.

So it would seem that the folks that are doing the shipping and distributing here, could provide a shopping list... and FILL THE BARRELLS here..

no?

cobraboy · Mar 16, 2011

mountainannie said:
well the distribution routes are already there, aren\t they?

Aren't the barrels already delivered to the door?

and if the barrells are going to be taxed... well... surely there is a big margin to work with .. I always thought it was silly to send the stuff, since the shipping costs are really big.. But I understand the mind set behind it. That the folks know that the money goes to food, diapers, and not to the Banca or the booze.

So it would seem that the folks that are doing the shipping and distributing here, could provide a shopping list... and FILL THE BARRELLS here..

no?

Wouldn't need barrels.

You can do it but the cost of the food, delivered, will be much higher that from the store or colmado, the difference being YOUR costs and time.

The food card/gift certificate sounds reasonable, cost effective and easy.

Search

Search

Could this be a business?

mountainannie

Platinum

Chip

Platinum

mountainannie

Platinum

Matilda

RIP Lindsay

Chip

Platinum

dv8

Gold

BushBaby

Silver

cobraboy

Pro-Bono Demolition Hobbyist

Chirimoya

Well-known member

mountainannie

Platinum

cobraboy

Pro-Bono Demolition Hobbyist

mountainannie

Platinum

Bronxboy

Well-known member

mountainannie

Platinum

cobraboy

Pro-Bono Demolition Hobbyist