A Few Years Later
There’s a whisper going around the world.
Consumers, don’t you hear it?
These are the voices of imperialist companies!
Consumers, don’t you hear them??
Prominent supermarket chains and grocery stores are whispering.
Food industry giants are whispering, too.
The whisper comes from all continents: “Mobilization against the Neighborhood Union!”
A Few Years Ago
In the days of my childhood, I used to sell sugar cane juice, coconut water, mineral water, and other items in front of our house.
My father would buy these goods from suppliers with the intention of reselling them to make some money, and it was my responsibility to resell them at a markup.
Sometimes, I must confess, I would consume our own goods.
But I knew that the loss wasn’t significant since these goods were bought at around half the price I would have paid at a snack bar (or even less).
This curious aspect of commerce intrigued my mind, sowing the seeds of a grand idea: Why should we settle for inflated supermarket prices when we could go directly to the source?
By cutting out the superfluous middleman (the supermarket), you can save a lot of money on groceries!
The Supplier
When I bring up the idea of cutting out the middleman and buying directly from suppliers, people often ask me a common question:
“Um… What is a supplier?”
So, let me take a moment to explain.
The products you see on supermarket shelves aren’t necessarily made or produced by the supermarket itself; they come from suppliers.
Suppliers are the ones from whom supermarkets purchase the goods they resell at a higher price to customers like you and me.
These suppliers may specialize in various product categories such as food and beverages, household products, personal care items, cleaning supplies, fresh produce, dairy products, and more.
Suppliers can take different forms, such as manufacturers, wholesalers, distributors, or even growers (but I’ll explore that later).
The Neighborhood Union
Buying More, Paying Less
Just the other day, a seller offered a small bottle of pure honey for BRL 20.00.
I ended up buying two bottles for BRL 35.00.
(For the seller, selling more to an interested buyer at a lower price is often a more appealing option than trying to persuade many individuals to buy. It is more profitable and convenient than spending several hours walking under the sun, with the possibility of not making other sales.)
By purchasing two bottles, I paid BRL 17.50 per bottle, saving BRL 2.50 compared to the initial price.
It was a win-win situation for both of us: the seller was glad to earn more money, and I was happy to save some cash.
This exemplifies the principle behind the practice of buying goods in large quantities directly from suppliers.
Splitting
You might be thinking, “That’s too much honey for me to use alone, and I can’t afford that right now.”
But there’s an easy solution: team up with someone else! By pooling your resources, you can buy the honey together and split both the cost and the bottles.
This way, each person saves BRL 2.50.
Think of this as a small-scale example of how you can collaborate with others to cut down on expenses. Just as you might split a purchase with a friend, you can expand this idea to your neighborhood.
Think of it on a larger scale: You begin by involving a close friend, then expand to include other families in your neighborhood, until you unite all the neighboring neighborhoods to stand together against the tyranny of imperialist supermarket companies and completely overthrow their power! save some money. 👍🏼:)
The Wholesaler
For suppliers, it’s often more convenient and easier to sell their entire stock, even at a lower price, to a few legal entities like supermarkets rather than trying to persuade multiple individual customers to buy their products.
Instead of waiting for individual customers to make purchases, they can sell a large quantity to a retailer all at once.
This approach helps them avoid the risk of having products sitting on shelves for too long and potentially going unsold, minimizing the chance of wastage or losses.
They are always assured of sales and don’t have to concern themselves as much with trading, advertising, or customer persuasion. They can offload the responsibility of distribution and focus more on their core competencies.
And even if they’re selling at a lower price per unit, the high volume of sales compensates and ensures profitability.
Then, there are two important points to consider when buying directly from suppliers: (1) they only sell in large quantities, which may be impractical for individual consumers like you and me, and (2) their target audience are legal entities.
But don’t worry, our Neighborhood Union will provide a solution to these challenges.
Buying in Bulk
So, given that they only sell in bulk, you can coordinate with your neighbors to divide the substantial amount of goods and their associated costs among yourselves.
- Designate a Representative: Choose one individual, possibly yourself, to act as the representative of the Neighborhood Union. This person will oversee the entire process and serve as the point of contact with suppliers. This individual essentially acts as the owner of this “grocery store” (their own house).
- Share Product List: The representative gets a list of available products from suppliers and shares it with interested neighbors.
- Select Products: Neighbors review the list, choose what they want, and inform the representative.
- Payment: Each neighbor contributes their share of the total cost to the representative.
- Order Placement: Then the representative contacts the supplier (I text them on WhatsApp) to place the order for selected items. They handle logistics and ensure everything is set for delivery.
- Receive: When the supplier delivers, the representative oversees the unloading and makes the payment.
- Distribute: Neighbors then visit the “grocery store” to collect their purchases, which they have acquired at a significantly lower cost compared to the supermarket.
It’s actually easier than it may seem.
All it takes is for you and your neighbors to come together and get organized.
Each clan family joins forces, and that’s how the Neighborhood Union is born.
Forming the Neighborhood Union effectively resolves the challenges associated with handling large quantities of products and the substantial financial outlay required for their purchase.
Being a Legal Entity
Every supplier I contacted requested a legal entity registration number, which I had readily available.
I don’t know how it works where you live, but here in Brazil, to buy directly from the supplier, you have to be a legal person—which involves monthly government fees.
However, you don’t have to pay this amount alone. Remember that you are a member of the Neighborhood Union!
Instead of paying the full fee alone, you can split it among you and your neighbors.
Here I have to pay a fixed amount of almost BRL 70.00 per month to the government. However, if the Neighborhood Union consists of ten families, then each family would only need to pay BRL 7.00.
You collect this small contribution from each member and then submit it to the government.
The amount of money you will save on grocery shopping will be far greater than the mere BRL 7.00 you’ll spend on taxes.
Furthermore, as more families join the Neighborhood Union, the fee that each member have to pay decreases even more.
Mandatory Monthly Purchases
The local factory representative also mentioned that I’d have to make a minimum monthly purchase on a regular basis.
If you encounter a similar requirement, don’t worry.
Remember, you’ll always have guaranteed “customers”: your neighbors and friends.
The supply that the truck unloads at your house grocery store is immediately distributed among your neighbors.
As a result, you’ll need to buy more from the supplier next month.
Factory and Distributor
Before we proceed to the next topic, I think it’s important to talk about the difference between a factory and a distributor.
Both the factory and the distributor act as suppliers and sell products at lower prices compared to supermarkets, but they perform distinct roles:
- The factory, as you can infer, is the one that manufactures, packages, and brands the goods. They exclusively sell items under their own brand.
- The distributor purchase goods in bulk from different factories and distribute them to various outlets, such as small grocery stores and restaurants. They offer a wide range of products from different brands.
Distributors are like cheaper supermarkets where you can purchase a wide range of items available in supermarkets, including various brands.
As you can guess, buying directly from the factory is cheaper than purchasing from a distributor, due to eliminating additional intermediaries (the distributor) in the supply chain.
Starting your “Business”
Climbing the Steps
Just like starting a professional career doesn’t immediately involve earning a lot of money or being in high demand, the same happens with making purchases directly from suppliers.
When I started, I made the mistake of trying to buy goods directly from a large factory.
They showed little interest in selling to me, probably because I was a complete beginner with a small “business” that might not succeed.
They asked for at least two invoices from different suppliers to decide whether they would sell to me or not.
However, since I was just starting, I had no other suppliers.
In other words, to have suppliers, I first needed to have suppliers.
Yeah, you need experience to get a job, and you need a job to get the experience.
Tragic and poetic.
So, I decided to start at the bottom and gradually work my way up, aiming to eventually buy directly from the factory for even lower prices.
I considered purchasing through a distributor instead: “A distributor already operates in my town, so they would likely be more willing to sell to small and startup traders.”
It worked.
I placed the order, and as scheduled, the truck arrived. I paid for the groceries, and they were promptly unloaded.
Easy.
It’s a bit more expensive than buying from the factory, but it’s still cheaper than buying from the supermarket.
Over time, as major factories see you consistently purchasing substantial quantities of products from various suppliers or distributors, they will recognize your expertise and competence in the field. HAHAHA
After all, you “sell” a lot to your neighbors and constantly order more from your suppliers.
As a result, they will be more inclined to sell directly to you, leading to even greater savings.
Before long, you’ll reach the ultimate level: buying directly from farmers and “selling” the goods to the whole town for just a few cents! HAHAHA
Income Tax
I don’t know how it works where you live, but it’s important to look into the income tax implications.
You’ll be handling collective funds from numerous families for their monthly shopping, which can add up to a significant amount of money.
Can you justify that the funds being deposited into your account are contributions from multiple individuals for group purchases, rather than payments for goods or services provided by you?
Contacting Suppliers
Another common question I receive is: “How can we contact suppliers?”
Some people believe it’s a complex and difficult process, but reaching out to suppliers is actually quite simple, especially in today’s world.
Take, for example, a bag of rice—find the phone number of the factory on the packaging and give them a call. Simple as that.
I once went to the market solely to obtain the phone numbers of suppliers from the product packaging.
Nowadays, an even simpler approach is to search the internet for suppliers.
You can even place orders via WhatsApp. Simply send them a message and wait for the truck to arrive with your goods.
A Manifesto Against the Supermarket Model
The theory of our movement may be summed up in the single sentence: No more middlemen between the land’s produce and the people.
The people are struggling to meet basic needs. All around the world, the weight of this broken economy presses down on families, while a system that puts profit over people, convenience over community, and competition over collaboration drains their hard-earned money. For them, there seems to be no hope in sight.
But that ends now.
We now rise together to challenge the dominance of big corporations and build a new system. Alone, no family can stand against their power—but today, families are not alone. The Neighborhood Union is unconquered, we are unconquerable! Under our shadow, corporate empires tremble at the prospect of losing profit, and their advisors in desperation are shouting: “Sanctions! Embargo! Punitive measures against the Neighborhood Union!!!”
The Brazilian government has tightened its grip, granting a select few companies control over the imports that feed our city. But we will push back. We’ll get the registration they require. After all, we are not individual citizens—we are a company of the people. We will act as a company. We will get the licenses, meet their demands, and show the imperialist companies that their restrictions don’t make any difference to us!
Do you see it? The Neighborhood Union stands alone against corporate imperialism. Local governments will not help us deliver the poor from their hand, and they will not support us to free the needy from their power. We can rely on no one!
If that is our fate, so be it.
If we have to push back the supermarkets alone, we’ll do it.
If we must win this war alone—we shall do that too.
We will not rest until the old system crumbles, and from its ruins, a new world food order rises—one where even the poorest families will have enough food on their tables, always and forever.
Thanks for reading! 🙂
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Until next time, God willing.
Take care!
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