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The ATL Needs Food

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Hi, 

I am a rather new street rep out here in Atlanta, and I'll be honest I am not super familiar with the direction we are headed with accounts that are on these special GPO programs. I had an account with Integra and it got pulled so that we could fund the deals internally. 

Can someone clarify where this is all headed. I spoke to a rep for a buying company I think it was foodbuy and they brought up interesting ideas to help with acquiring new business. 

Thanks 

ATL Foodie 
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SonofAbeach

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I think once these Buying Groups realize they are still not getting best price because of RDC up-charges, they will start to go elsewhere and give PFG and GFS, the opportunity to service them. 
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Quote:
Originally Posted by SonofAbeach
I think once these Buying Groups realize they are still not getting best price because of RDC up-charges, they will start to go elsewhere and give PFG and GFS, the opportunity to service them. 


Are you being serious? You think these buying groups (Premiere, HPSI, Navigator) really are unaware of the inflated pricing, hell they created it. And who's to say these groups aren't extensions of the same interests that created Sysco/ USF etc. in the first place? 

The buying groups are not interested in the best pricing, they're interested in skimming off profits from long term healthcare purchases. They're not na├»ve. 

The infamous Bernie Madoff's first biz partner was the fellow that founded Premiere buying group-- enough said.
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SonofAbeach

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Your totally missing my point on the difference between Sysco' RDC system and all of the other Distributors including US Food. Any buying group paying those extra RDC Prices are absolutely insane.
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Originally Posted by SonofAbeach
Your totally missing my point on the difference between Sysco' RDC system and all of the other Distributors including US Food. Any buying group paying those extra RDC Prices are absolutely insane.


You wrote in your first post on the subject "once they realize", which to me means the buying groups "are ignorant" of the upcharges, correct? So how did I miss your point? I say buying groups are "extensions" of the big food distributors and are enriching themselves through the same method of "inflating" prices and skimming the difference that Sysco and US Foods engage in. Without these buying groups a Sysco and US Foods would have a monster of a time "corralling" all the long term healthcare, hospitals under one roof. So the buying groups eliminate competition and allow all the participants to "rape" the system. 

Look at the recent takeover of Avendra by Aramark. In 2016 the Justice Department nixed the Sysco takeover of US Foods and a year later you have a Sysco partner Aramark takeover one of US Foods largest accounts, so the shift in business has begun in defiance of the Justice Departments ruling. Next up we'll see Sodexo take over Premiere, eh? 

It's the same thing with food brokers, they consolidated them into 3 large players so that they could receive "kick backs" from these 3 companies, which is easier than having each OpCo chase down local broker organizations for "cash". In fact some local brokers might balk at paying out money, so they've eliminated that problem while at the same time pooling a huge income stream from which they can tap into.
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DistributionDiva

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Reply with quote  #6 
If there is a way to prove the big brokers are receiving kickbacks from Sysco and US foods while they (Sysco and US Foods) are effectively making it impossible for small, independent brokers said to do business with them I would love to know...because that is a fight I am willing to jump in to.
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Quote:
Originally Posted by DistributionDiva
If there is a way to prove the big brokers are receiving kickbacks from Sysco and US foods while they (Sysco and US Foods) are effectively making it impossible for small, independent brokers said to do business with them I would love to know...because that is a fight I am willing to jump in to.


Diva- I wasn't suggesting the kick backs were going from Sysco-USF to these 3 brokers, exactly the opposite. The kick backs are paid by the 3 national brokers. There is no other legitimate reason to consolidate the local brokers. Imagine the pool of money that has been created. 

You're right that consolidation of brokers is another barrier of entry into the foodservice market, which is also their intent. You cannot have a flow of cash into the foodservice industry that isn't controlled and siphoned off by the big distributors. 

It's the same thing with buying groups. It's a means to siphon off multi millions while blocking the segment from competition that isn't controlled. 
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laser

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I agree with Investigator. The question is if that is legal. It seems that it should not be, but I don't the law. Does anyone know?
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Originally Posted by laser
I agree with Investigator. The question is if that is legal. It seems that it should not be, but I don't the law. Does anyone know?


The brokers deal in monthly checks, commissions from their principals. They are not employees of the companies they represent. They can do what ever they want with this cash. They can buy Miami condo's, dope, what ever the hell they want. It's not like an direct sales person from Kraft or Con Agra living off a bi-weekly paycheck. But no one knows where this pool of money ultimately ends up. Look at Tyson/Sara Lee how much money flows to AWP on an annualized basis---$40 million? That's a lot of cash and no distributor worth his weight would allow some schmuck at AWP to walk away with all of that cash, just no way. 

I know back in the day certain unscrupulous local brokers "kicked back" monies to the local "Don's" (distributors) that so controlled their success of failure. This consolidation had to have been approved by the big national distributors or otherwise it would be a pointless and money losing proposition. The best way to lose your brokerage company back in the good old days was if the local distributors "stopped talking to you". When that happened you were finished as a local brokerage company. But that's all a distributor would have to do to get you fired was to say "you're not welcome in this building anymore"; if that happened then you were finished. 

These brokers now are selling themselves to their principals as "national account" coverage, corporate account coverage, the more jobs they can usurp the more product flows, commissions they get their hands on. And the more money they can access the more money they can spread around to the trade. 



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SonofAbeach

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Reply with quote  #10 
Investigators conspiracy theories do make for entertaining reading!
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Investigator

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Reply with quote  #11 
Quote:
Originally Posted by SonofAbeach
Investigators conspiracy theories do make for entertaining reading!


Do you have any idea how many times some goofball has written the "exact" same retort? Believe it or not your comment demonstrates without any question your own stupidity. 

There are 7 billion people on this planet, do you realize this could never happen without the help of conspiracies between people through the years? It couldn't happen otherwise. 


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SonofAbeach

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Reply with quote  #12 
Wow you, Mr Investigator, are truly an Angry Individual. Goofball, Stupidity LOL. I cant speak for everyone but as a person that has worked both the Broker and the Manufacture side I can truly see, and enjoy, your Conspiracies. Not sure why you choose to make up crazy things but it's ok, I'm still not going to resort to name calling. I do hope you find the time to have a Merry Christmas. Looking forward to more comic reading this 2018. 
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Investigator

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Reply with quote  #13 
Quote:
Originally Posted by SonofAbeach
Wow you, Mr Investigator, are truly an Angry Individual. Goofball, Stupidity LOL. I cant speak for everyone but as a person that has worked both the Broker and the Manufacture side I can truly see, and enjoy, your Conspiracies. Not sure why you choose to make up crazy things but it's ok, I'm still not going to resort to name calling. I do hope you find the time to have a Merry Christmas. Looking forward to more comic reading this 2018. 


Now this is groundbreaking stuff. That's why I asked you how many goofballs have written the same exact (literally verbatim) comments through the years. Of course you like those before you avoid answering any direct questions. 

And you too have Merry Christmas and pledge to be as stupid in 2018 as you were this year. And believe it or not your stupidity is the result of conspiracy. 
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commoditiesguy

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Reply with quote  #14 
Quote:
Originally Posted by SonofAbeach
Wow you, Mr Investigator, are truly an Angry Individual. Goofball, Stupidity LOL. I cant speak for everyone but as a person that has worked both the Broker and the Manufacture side I can truly see, and enjoy, your Conspiracies. Not sure why you choose to make up crazy things but it's ok, I'm still not going to resort to name calling. I do hope you find the time to have a Merry Christmas. Looking forward to more comic reading this 2018. 

Engaging with Mr. Investigator is an exercise in futility.
Because he won't ever tell you how companies should make money in this business.
All he ever does it tell you how they shouldn't.

Pressed into explaining exactly how it's illegal to profit from a sheltered income stream, he only ever pivots to some moralistic argument.  Which is a completely different discussion altogether.  But, like most without any answers, he simply accuses, evades, conflates, then goes silent when they are out of non sequitur things to write.
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Investigator

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Reply with quote  #15 
Quote:
Originally Posted by commoditiesguy

Engaging with Mr. Investigator is an exercise in futility.
Because he won't ever tell you how companies should make money in this business.
All he ever does it tell you how they shouldn't.

Pressed into explaining exactly how it's illegal to profit from a sheltered income stream, he only ever pivots to some moralistic argument.  Which is a completely different discussion altogether.  But, like most without any answers, he simply accuses, evades, conflates, then goes silent when they are out of non sequitur things to write.


What a command of the English language, I am impressed!

By the way everything you asserted about me is false. What you show to be true is your fixation with acquiring "money" no matter how that money is acquired. Why don't you just put your daughter or wife on the street, that makes money doesn't it? The customer inflates his product your wife consumes that product and voila you've earned a "profit" 
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SonofAbeach

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Reply with quote  #16 
Commoditiesguy - You're right, some of his stuff is entertaining at best, but he does tend to become a little more angrier these days. Using the example of your wife and daughter, just destroys all of his credibility. He remind's me of those Angry 25 year old's that like to go back and forth with anyone on a blog lol. To think the buying groups are giving Sysco and US Food Kickbacks, The Brokers are giving Sysco and US Food Kickbacks, LOL Everyone is giving Kickbacks. I guess DOT Foods is giving them Kickbacks as well?? I assume only us Manufactures are the last ones to just pay on what is actually sold?? Or do we?? LOL
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