Red Flags That You Aren’t Getting a Good Deal from Your Supplier

In the catering world, the cost of goods plays a large role in the overall success of a company. If ingredients are priced too steeply, your rates will have to go up — and not every business can survive that change.

When it seems like you’re paying too much for ingredients, it might be time to turn your attention to your supplier. Are you really getting the best bang from your buck for them? Is it time to set your sights elsewhere and find a new supplier that has your best interest in mind?

Of course, honesty and transparency are key in a caterer-supplier relationship. However, here are a few other red flags to consider as you evaluate your wholesaler.

The numbers don’t match up.

Just because you are quoted a certain price doesn’t mean it’s the best value available. Keep an eye on your local grocery store to see how their pricing measures up to what you’re being offered. Likewise, ask around to see what your industry peers are paying for the same food.

“It’s a bad sign when store prices are less than wholesale prices,” shares Lon Lane of Lon Lane’s Inspired Occasions. “In addition, ask other chefs what they are paying for various items.”

If you find that your pricing matches up with other sources, then you’re golden. But, if you discover you’re being overcharged, it’s worth checking with your supplier to see if there’s a reason — and, more than likely, it’s high time to find a new wholesaler that you can trust. 

Your needs aren’t being met.

At the end of the day, a supplier should have your interests in mind. A trusted partner is one that will want to form a long-standing relationship with you that benefits both parties. You have a reliable source of ingredients and they earn return business from your company.

However, not all suppliers are as trustworthy as they seem — so be sure to consider whether you feel like your needs are being heard and met.

“You want to look for partners that understand your business and want to help you be successful, not just make a sale,” says Anthony Lambatos of Footers Catering. “They should be asking you questions about your needs and making recommendations that align with your needs, not trying to sell you what benefits them.”

Be wary about flash sales.

We all love a good sale, right? Saving money wherever possible is an important part of running a sustainable and cost-effective business. However, a steep discount can sometimes cover up the true reasoning behind the price cut, so approach a sale with caution.

“Truck-load sales and sale blitz items stand out to me as what they are trying to offload or push,” explains Adam Gooch of Common Plea Catering. “These always stand out as red flags because why are they trying to push these items?”

Gooch continues: “Sales always take away from the other items that the vendor has, in my opinion. Pushing an item makes the customer think that they are saving money, which in turn, compared to the regularly stocked item, could be more money. This is why it’s important to look at the numbers and historical data to assure that you are indeed saving.” 

Having a reliable and trustworthy supplier should be the golden standard for any catering business; after all, their goods form the foundation of your service. You want to ensure that you are receiving high-quality ingredients at the most cost-effective rate. If you’re not, it’s a good sign that you need to start meeting with new suppliers to find someone who can better support your business.