Hard to believe they turned you down. Quality apparently means nothing to them. I also have a hard time believing that they sell 12oo bundles a week unless they have a couple dozen or stores selling them. Anything is possible I suppose.
One of my new truckload customers was buying bundles for his fireplace at home from a grocery chain. He said the wood burned like popcorn. After I delivered a truckload of quality firewood, he called me up and said he would never buy another firewood bundle from them again as log as I am in business. He could not believe he was paying $6 a bundle for kindling. He showed me one bundle that he had kept to compare with my hardwood splits, and I had to agree with him.
I don't have that spreadsheet in front of me, but yes, it was around 10-12 stores (in an area of around 400,000 people). I would have been an additional vendor, they already have 2 outfits doing it but they couldn't keep up.
The one outfit also does the local gas stations. I had looked into it (knew the manager of the local store so she gave me the info) They only pay around $2.25 a bundle and sell them for $6 each.
I'm not sure how the other guy can sell them that cheap and be ok. I sat down and really ran the numbers (best I could) and was looking at around $2.00 a bundle in direct costs.
On top of that he has to deliver the bundles to all the gas stations in a radius of about 100 miles. Not sure how often he does it, but most of the gas stations have just a small pile by the store, maybe 30-50 bundles.
The bundles are .75 cu ft, so let's say 160 bundles to a cord if he's fairly stingy. That's $360 a cord. Can sell it as bulk wood for $275, so $85 "profit". Take away about .75 a bundle for the wrap, label and labor... that a "profit" of $10. And that's not counting having to deliver it for that price too.
Makes no sense to me.
As far as the grocery store, it was a mega headache dealing with them. They expected me to know how they do things and who to talk to. The irritating thing too is they brag all over about being "local"... we support local farmers, producers, "buy local" etc.
They've had wood bundles or sale there from Utah, Texas, and even Lithuania! (I'm not kidding!)
The only info I had really was from a manager that handles the stores in the state. He was the one that called me out of the blue wanting to know if I'd be interested in selling bundles to them.
The guy I was dealing with, the the regional outdoor/gardening purchasing manager outright told me that he didn't have time to "spoon feed" me when I asked questions.
Knowing now how it all ended up going I should have told him to shove it at that point. He certainly could have used some lessons in humility and courtesy!
I don't know why they never would give me a price on them. Just the required 2 million in insurance and the bar code I would have needed to pay for would have cost me close to $2500 for a year.
Yup... 2 million in insurance for a small time guy to show up at the loading dock with a few pallets of bundles a week. No idea what could happen to do that much damage!