The potato chip industry is huge, owing to chip lovers worldwide. The global potato chip market was valued at USD 47985.7 million in 2022 and is expected to reach USD 64679.31 million by 2028. As the demand for potato chips continues to grow worldwide, becoming wholesale potato chip suppliers is a lucrative option for entrepreneurs looking to enter the snack food industry. In this blog post, JOJOSE FOODS, a renowned name in potato chip manufacturing, explores the steps involved in becoming a wholesale potato chip supplier and provides tips for success in the industry.
Who Is a Wholesale Potato Chip Supplier?
A wholesale potato chip supplier is a distributor that specializes in purchasing large quantities of potato chips directly from manufacturers or wholesalers and reselling them to retailers, restaurants, and other businesses at wholesale prices.
Wholesale suppliers play a crucial role in the snack food industry supply chain by facilitating the distribution of potato chips to various businesses and ensuring a consistent supply of products to meet consumer demand.
Wholesalers buy goods from manufacturers in large quantities to get a significant discount to pass on to retailers. They typically have a product license, and the common masses do not have access to their products.
Steps to becoming a wholesale potato chip supplier
- Research the market.
Before starting any business, the first step is to research the market. It’s essential to conduct thorough market research to understand the target customer base, competitors, pricing strategies, latest trends, and other essential factors that have a major impact on the commercial success of your business. Also, assess the demand for potato chips in the target market to identify opportunities for growth and differentiation.
- Develop a business plan.
Developing a business plan is the next step for succeeding as Wholesale Potato Chips Suppliers. Your journey is incomplete without an effective business plan. A solid business plan includes verifiable industry data. A business plan should be based on a solid understanding of the market and should not include guesses or intentional exaggerations. A well-planned business plan guides you through each stage of starting and managing your business. Consider factors such as production capacity, distribution logistics, packaging options, and branding strategies as you develop your business plan.
- Assess the competition.
Becoming a wholesaler in the potato industry is a tough task, as the potato chip industry is a competitive one. It’s best to determine how many competitors you have and where you stand in the competition. Ensure that the area where you plan to become a wholesaler is large enough to support another potato chip wholesale business. If the local market does not, then it’s best to be sure that you offer services much better than your competition.
- Obtain the necessary licenses and permits.
Licensing requirements vary from city to city, but they are a must before you launch your wholesale potato chip business. You need to consider your location and the scale of your operation, and you may need permits for food processing, food safety, health, and sanitation. Research the regulatory requirements in your area and ensure that you comply with all applicable laws and regulations to avoid legal issues down the line.
- Source quality ingredients.
The quality of potato chips will play a significant role in the success of your wholesale business. Texture, color, and oil uptake are all crucial factors that determine the overall quality of potato chips. It should have a combination of waxy and floury qualities. Choose a manufacturer for buying potato chips that are of high quality and follow standard procedures and hygiene conditions in their factories. By emphasizing quality, sustainability, and locally sourced, high-quality ingredients, you ensure that your potato chips appeals to a large audience, which in turn derives success for your business as a wholesale snacks suppliers near me.
- Determine wholesale prices.
Determining wholesale prices is a big challenge that confuses many distributors. As a distributor, you need to sell quality products at a cheaper price and do it in such a way that there is some profit left to make a worthwhile business.
Determine if your margins are good enough to give a proper discount to someone who purchases wholesale chips. Retailers too want to make money out of your potato chips, so providing them with just a 10% discount won’t be enough to get them to buy your chips. Also, on the other side, you have to make sure that you are not overcharging and do not want to lose money on your wholesale orders; otherwise, it won’t be sustainable.
- Set minimum order quantities.
Wholesalers make money by selling products in bulk. This means products are much lower in price as compared to selling them directly to the customer, and therefore you need some restrictions in place to determine that the business is not going low in profits. The last thing you want is to sell a minimum quantity of chips, which in turn will cost you more if you consider other charges such as taxes, shipping, and production fees.
A minimum order quantity (MOQ) means the smallest number of units a wholesale customer can order. This keeps you in profit, as the customer is then liable to order in bulk, ensuring you gain some profit. Ensure that you consider your target business’s minimum quantity order and how you could offer tiered prices for different company sizes and order volumes.
- Shoot product stock images.
One of the common mistakes that wholesalers commit is not shooting product images and the impact they can have on their wholesale business. In case you are also considering selling it directly to customers, shooting images that are a true representation of the potato chips is a must. Consider shooting the potato chips against a white background to remove any possibility of distraction for the buyer and accurately represent the product.
You can hire a professional photographer to introduce you to new ways of shooting potato chips in a unique, interesting, and appealing way.
- Create packaging and promotional materials.
The importance of promotional material and packaging cannot be understated, given that you want to increase the growth of your business. As a wholesale distributor, you do not have direct control over how retailers are going to market your potato chips, but providing them with premade promotional materials such as templates for advertising or display signage gives you the power to inspire your retailer to use the intended packaging that can boost your sales.
If you are promoting your potato chips online, then offer retailers templates and resources to promote your products online on social media sites like Instagram and Facebook. This can help connect a wider audience to your potato chips and make more people aware of them. Whereas if you are considering selling your products in a brick-and-mortar store, you can consider providing special shelving or branded display material to enhance the visibility of the potato chips.
Conclusion
Becoming a wholesale potato chip supplier involves thorough research, strategic planning, and attention to detail. By understanding the market, developing a solid business plan, sourcing quality ingredients, and implementing effective marketing strategies, entrepreneurs can position themselves for success in the competitive snack food industry. With careful consideration and proactive measures, aspiring wholesalers can capitalize on the growing demand for potato chips and build a profitable business that meets the needs of retailers and consumers alike.
