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If you are interested in a simple small business with low overhead and a high potential for profit, you may want to start a snack food distribution company. And with this guide, you can get a basic overview on how snack food distribution works – and how to begin your own successful small business. Let’s begin!





What Is Snack Food Distribution?

 

Snack food distribution is the process of purchasing and distributing snack foods to customers for a markup. Essentially, you purchase snacks in bulk – and supply them directly to a particular business.

 

There is a high demand for snack food distribution, because there are so many different stores that stock snack foods, including:

 

  • *  Grocery stores

  • *  Convenience stores

  • *  Coffee shops

  • *  Gas stations

  • *  Drugstores and pharmacies

  • *  Arcades and entertainment centers (roller rinks, laser tag, etc.)

  • *  Movie theaters

  • *  Vending machines

 

The start-up costs for a snack food distribution service are quite low, especially if you focus on supplying other smaller, local businesses, and you provide a selection of popular snack foods.

 

The Steps For Setting Up Your Snack Food Distribution Business

 

Because snack food distribution does not require much capital to start a business, just about anyone can get into the industry. The following steps are somewhat simplified – but they’re the basic steps you’ll have to take to set up a snack food distribution business.

 

  1. Select your snack foods – You can choose mainstream, popular snacks like potato chips and cookies, or more healthy options like vegetable chips, roasted chickpeas, and other such snacks. Figure out which types of food will likely sell the best at your intended locations!

 

  1. Find inventory space for your food – You may be able to simply use part of your house to store your inventory at first, but you’ll eventually need an office or small warehouse. Make sure the area is food-safe and free of any insects, mice, or other pests. You don’t want your inventory to be ruined.

 

  1. Invest in a delivery vehicle – A mid-sized commercial van is the ideal delivery vehicle. You can load and unload quickly, and set up shelving units to help you keep each delivery separated – yet easy to access.

 

  1. Develop a list of potential business partners – You’ll need to come up with a list of potential business partners in your area, who may be interested in stocking snacks.

    Typically, you’ll want to avoid larger chain businesses – as they tend to get supplied from a single supplier. Instead, focus on smaller independent businesses, like convenience stores, arcades, or any other small, local business that could benefit from selling snacks to customers.

 

  1. Create a price list and delivery schedule – You’ll need to develop a price list for your services, and for each snack that you’re delivering. This ensures that your items are priced properly. Your prices should also take your labor and overhead costs into account, to ensure your business continues to be profitable.

 

  1. Decide whether you’ll be stocking inventory yourself – Stocking inventory yourself is a great idea if you are working with only a few businesses, and you want to provide extra value. If a store doesn’t have to stock items themselves, it’s much easier to convince them to start selling your snacks.

  2. Consider expanding into vending machines – If you distribute snack foods, the next step for your business could be purchasing several vending machines, and finding local businesses who will allow them on their property. Typically, you’ll split the proceeds of these machines with the business. This is a great way to get passive income, and expand the reach of your snack food distribution company.

 

Obviously, you’ll need to develop a business plan, consider your financials and loan eligibility, think about tax implications, and consult with legal and tax professionals to set up your company, in addition to these above steps.

 

But, even so, the actual process of setting up a snack food distribution company is quite simple, and can be done in a short period of time!

 

Is A Snack Food Distribution Company Right For You?

 

If you are a “people’s person”, don’t mind driving and delivering, and are interested in a business that takes relatively small amounts of capital to develop, a snack food distribution company may be a great idea for you. So think about the steps in this guide, and start developing a business plan for your company now.