Why do we work with retail chains primarily?

As an agent, we are more comfortable working with retail chains than with wholesalers. Why? For several reasons.

The main one is because cooperation with them is formalized and predictable. Retail chains act according to a clearly defined system that they respect. They work with a price fixed before loading, specific documentation. They accept the fruits according to clear specifications, the quality control is transparent, at least for a certain degree. They pay according to the contract and on time. In this way, it’s manageable, and we know what to expect.

Working with wholesalers is different.

They tend to renegotiate each trade according to the market situation, their expectations, and their trading position. There is a lack of reliability with most of the wholesalers here in Russia. Not all of them, but most of them. You can never be sure that they will agree to pay you according to your defined price before loading and on time. With retailers, too often, we end up putting the bill instead of them. They might avoid fulfilling their commitment, closing their debt and since we are the agent, we manage contracts and deliveries, we take the responsibility of our partners, so couple of times we put the bill overselves, so that doesn’t make sense, that’s not a proper business.

Thus, working with retail chains is a way more appropriate business in Russia for a supplier of high quality fruits.

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