Chris Swing of Vantage Outsourcing discussed why pricing is an art not a science. We discussed the supply change from manufacturer to distributor to retail to client and the mark-ups that may occur throughout the process. Other topics discussed were cost of shelf space, air rights, packaging to utilize space and how to make yourproduct unique so a higher price can be charged.  Students then participated in an exercise to more fully understand the concepts.

Do you know why Mars decided to locate in Coles County to make pet food? It was because we sit in corn fields and many of their ingredients are nearby and that saves on transportation costs. This was just one of many interesting lessons we learned with James Warman and other managers from Mars Petcare. We also discussed the advantages of being privately owned and how decisions can be made for the long-term much easier than with a public traded company who has to worry more about the quarterly returns to the stockholders.

Alex Melvin, CEO of the rapidly expanding Rural King, shared that having passion and pushing for excellence every single day is what you must do to succeed. Don Davis, COO of Rural King, shared with us their guiding values and stressed that you have to not just post these on the wall, but live them everyday. 

Jeremy  Muchow shared Rural King's pricing strategy, which is to have the lowest price because that is what the customer wants, then we toured the distribution center and how they sort and send inventory out to their stores quickly and efficiently.

Students continue focusing on their businesses. Ben and Baccho's order came in and they are selling like hotcakes.