How do I check a deli’s reliance on a single imported-goods distributor?
Look at the purchase invoices and see what share of the deli’s stock comes from that one distributor, and which best-selling items have no easy substitute. Then ask how the relationship works, what happens if supply stops, and whether the seller has ever tried another source.
Begin with the invoices. Sort a good stretch of purchases by supplier and mark which items come from the importer, which sell the most and which customers come specifically for them. Imported cheeses, meats, oils and pantry goods can define a deli’s character. If the best sellers all trace back to one source, the dependence is real, and you should say so to your lender or investors.
Next, understand the relationship itself. Ask whether there is a written agreement, how ordering and payment work, whether the shop has special pricing or exclusivity, and whether any of it depends on the current owner’s history with the distributor. Contact the distributor with the seller’s permission, and ask whether they plan to keep supplying the new owner.
Then test the alternatives. Ask what delays have happened, what the shop did, and whether other suppliers carry similar products. Your accountant can help you see how costs change if the supplier’s own prices or terms do. Ask who handles the paperwork for imported goods, and have your lawyer or a customs broker confirm who is responsible for what before you assume the arrangement continues.
Key takeaways
- Sort purchases by supplier and mark which best sellers depend on this distributor.
- Ask whether agreements, pricing or exclusivity pass to a new owner.
- Find out what happened during past delays and who else could supply similar goods.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to diversify your supply chain
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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