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Wholesale/Contract prices


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#1 Biggy

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Posted 25 August 2019 - 08:06 PM

I was just wondering what contract grows go for. I finally got around to buying a mulch layer. To be honest I hate the dealing with the retail end of sfrb's and a million trips to the post office. I just wanted to see if price per lb is worth it.

#2 SmokenFire

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Posted 25 August 2019 - 08:58 PM

Hard to advise you on such a topic without knowing how much you want to buy Biggie.  Every grower out there would love to have a dedicated buyer, but pricing will always depend on a) the quantity you are looking to purchase and b) when you can receive shipment of said quantity.

 

For example:

 

Say you want 15lbs of scotch bonnets next year (cause contract grows this year might be tough, but you might depending on variety you desire and availability):  You contact a grower, make arrangements, then you send them a deposit and then when the crops start coming in they start sending you peppers.  You keep getting peppers until you reach your 15lbs and both part ways happy. 

 

You will get a better price on a contract grow versus buying random SFRBs, but depending on the pepper it's not going to be cheap like what you can purchase jalapenos at your local store.  Niche market produce is a premium product, especially high quality niche market items. 

 

Before you contact a prospective grower have an idea of how much you want, when you want them and what you want to pay.  The price part will be negotiated, but keep in mind seasonality and availability during negotiations.  If you're looking for 5lbs of fresh reapers in the middle of January they are going to cost way more than 5lbs of fresh reapers in late August. 

 

Hope this helps.  :)


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#3 Biggy

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Posted 25 August 2019 - 10:06 PM

Hard to advise you on such a topic without knowing how much you want to buy Biggie.  Every grower out there would love to have a dedicated buyer, but pricing will always depend on a) the quantity you are looking to purchase and b) when you can receive shipment of said quantity.
 
For example:
 
Say you want 15lbs of scotch bonnets next year (cause contract grows this year might be tough, but you might depending on variety you desire and availability):  You contact a grower, make arrangements, then you send them a deposit and then when the crops start coming in they start sending you peppers.  You keep getting peppers until you reach your 15lbs and both part ways happy. 
 
You will get a better price on a contract grow versus buying random SFRBs, but depending on the pepper it's not going to be cheap like what you can purchase jalapenos at your local store.  Niche market produce is a premium product, especially high quality niche market items. 
 
Before you contact a prospective grower have an idea of how much you want, when you want them and what you want to pay.  The price part will be negotiated, but keep in mind seasonality and availability during negotiations.  If you're looking for 5lbs of fresh reapers in the middle of January they are going to cost way more than 5lbs of fresh reapers in late August. 
 
Hope this helps.  :)

I guess I may have worded the post funny. I would be the grower in the equation. I run a small operation and peppers were always more of a hobby. I usually have 2-4 acres in market veggies and 200 fruit trees. I was wondering if there is a market for larger purchases. I was more wondering what the price range larger purchases were going for. I usually run 300 or so hot-supers but recently purchased a plastic mulch layer and can expand exponentially. Like how much would 50lb sale be vs trying to move sfrb's.

Edited by Biggy, 25 August 2019 - 10:07 PM.


#4 podz

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Posted 26 August 2019 - 01:49 AM

Contract grows are something that are generally more attractive in combination with a nearby processing facility, be it self-operated or partnered. Supermarkets aren't going to pay a whole lot for fresh produce, whereas sauce companies will pay more and are often looking to expand in to new regions if you can produce enough and also execute their recipes.

 

 






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