No single shop is cheapest for everything. As a rule, fresh produce (fruit, vegetables, chillies, herbs) makes sense at a farmers market or greengrocer; dry goods and packaging in volume at a wholesaler or cash and carry; and the supermarket or corner shop for small amounts, emergencies or a brand your recipe depends on. The final decision comes from one simple sum: price per kilo or per unit, plus its share of the trip cost, at the quality your product needs.
Three questions for every ingredient
Before deciding where to buy something, answer three things:
- What does it cost per base unit? Dollars per kilo, per litre or per unit, not per pack. A smaller pack can look cheaper and cost more per kilo.
- How much do you use and how long does it keep? If it goes off in three days, it does not matter that the case is cheaper. You buy what you can use.
- What does it cost to get there? Fuel, parking, fares and your hours. That cost is shared across everything you buy on that trip.
For the first question you need your prices written down. The guide on how to track ingredient prices across shops shows how to do it without fuss. For the third, see the hidden cost of the shopping trip.
Fruit, vegetables, chillies and herbs: the market
Fresh produce changes price from week to week and stall to stall, and you judge quality by looking. At a farmers market or a good greengrocer you can pick, compare two or three sellers in ten minutes and buy the exact amount. Over time, a regular grower will set aside the best for you and tell you when something is about to get expensive.
A wholesale produce market or a produce wholesaler has a better price per kilo, but sells by the case, opens early and is often out of the way. It makes sense when you really buy in volume and process it quickly.
Dry goods: flour, sugar, oil
Dry goods keep for weeks or months, so volume pricing matters here. At a cash and carry or a bakery wholesaler you find 16 kg sacks, 5 litre containers and catering packs. The price per kilo usually drops a lot compared with a 1 kg bag at the supermarket.
The limits are cash and space. A sack that lasts four months is money sitting still for four months, and it has to stay dry and away from pests.
Dairy, eggs and meat
Here cold storage and freshness decide. Butter, cheese and meat can be bought in volume if you have freezer space and portion them as soon as they arrive. If not, buy for the week. Many wholesalers deliver chilled goods, which saves you the trip and keeps the cold chain.
Packaging and labels
Jars, bottles, lids, boxes, bags and labels do not spoil, so buying them by the case almost always pays, provided you have somewhere to keep them. Look for a packaging wholesaler. Buying jars a dozen at a time from a craft shop can cost you several times more per unit.
When the supermarket or corner shop wins
The supermarket is right when you need a little, when your recipe calls for a specific brand, or when an item does not turn up anywhere else. The corner shop is for emergencies: you ran out of sugar halfway through a batch. If you are at the corner shop for ingredients more than once a week, your shopping list is not coming from your production plan.
Worked example: three ingredients for brownies
You make 600 brownies a month. Your three main ingredients per month are 15 kg of flour, 8 kg of butter and 6 kg of dark chocolate. You found these prices:
| Ingredient (per kg) | Supermarket | Cash and carry | Bakery wholesaler (delivered) |
|---|---|---|---|
| Flour | $1.60 | $1.10 | $1.00 |
| Butter | $10.00 | $8.50 | $8.00 |
| Dark chocolate | $16.00 | $11.00 | $10.00 |
Monthly cost at each:
- Supermarket: 15 × 1.60 + 8 × 10.00 + 6 × 16.00 = 24.00 + 80.00 + 96.00 = $200.00
- Cash and carry: 15 × 1.10 + 8 × 8.50 + 6 × 11.00 = 16.50 + 68.00 + 66.00 = $150.50
- Wholesaler: 15 × 1.00 + 8 × 8.00 + 6 × 10.00 = 15.00 + 64.00 + 60.00 = $139.00
Now add the trip. You already pass the supermarket every week, so we add nothing. The cash and carry takes 2 hours round trip including shopping, and $8 of fuel. At $15 an hour: 8 + 2 × 15 = $38 per trip, once a month. The wholesaler delivers for a $15 fee, with a $120 minimum order, which your $139.00 order clears.
- Cash and carry with trip: 150.50 + 38.00 = $188.50
- Wholesaler with delivery: 139.00 + 15.00 = $154.00
| Where | Monthly total | Per brownie (÷ 600) |
|---|---|---|
| Supermarket | $200.00 | $0.33 |
| Cash and carry (with trip) | $188.50 | $0.31 |
| Wholesaler (delivered) | $154.00 | $0.26 |
The cash and carry has much lower prices on the shelf, but once the trip is counted it saves only $11.50 a month over the supermarket. The delivered wholesaler saves $46 a month, about $0.08 per brownie, and gives you two hours back for baking.
The sum changes if you buy all your boxes, labels and sugar on the same cash and carry trip. The trip still costs $38, but it is spread over more purchases, and each one adds its own saving. So group everything that goes to the cash and carry into one monthly trip, or into one delivered order, and leave the market for the weekly fresh shop.
A table to decide
| Category | First choice | When to switch |
|---|---|---|
| Fruit, vegetables, chillies, herbs | Farmers market or greengrocer | Wholesaler if you buy by the case and process it the same day |
| Flour, sugar, oil, salt | Wholesaler or cash and carry, monthly | Supermarket if you lack cash or space for volume |
| Dairy and meat | Wholesaler (delivered) or butcher | Volume only with freezer space |
| Eggs | Farm stall or wholesaler by the tray | Supermarket for small, irregular amounts |
| Packaging and labels | Packaging wholesaler, by the case | Small packs only to test a new format |
| Specific brands | Supermarket | Cash and carry if they stock the catering size |
Treat this table as a starting point. Your prices and your distances decide.
What the price does not show
Once you know where to buy each thing, it pays to buy from the same seller or supplier every time: it gives you grounds to ask for a better price or for your order to be packed ahead. The guide on how to negotiate with food suppliers and vendors explains what to ask for and how. For the whole picture (how much to buy, how often and how to plan it), see how to buy ingredients for a small food business.
Do it with the calculator
In the food cost calculator you enter the price per kilo you pay in each place and see how your cost per unit changes, so you can decide with numbers whether the wholesale trip is worth it.
Frequently asked questions
Is a cash and carry always cheaper than a supermarket?
Per kilo, usually. Once you add fuel and the hours the trip takes, a small order can end up costing about the same as buying at the supermarket you already pass every week.
Is wholesale delivery worth it for a small business?
Often, if you can reach the minimum order. A delivery fee is usually cheaper than a couple of hours of your time plus fuel, and you can spend those hours producing.
Where should I buy packaging?
From a packaging wholesaler or cash and carry, by the case. Packaging does not spoil, so buying in volume usually pays if you have the cash and the space.