Join our 4-part October series
Understand the numbers for success
Success in the food industry can be determined by how fast and effectively a processor responds to a change in the environment. And since the COVID-19 outbreak, there have been a lot.
We focus on the numbers behind your business: those that you control and that are out of control, so you can zero in on generating the best returns for your hard work. Sign up for all 4, or just what’s important to you – the choice is yours.
October 7- Gross margin and mark up are two terms that are used a lot in the food industry. Unfortunately, some people assume they are the same thing. We will explain how to calculate both numbers and why different people need to use one or the other. Retailers focus on gross margin and it is important for producers and processors to speak their language. We will also help you calculate category margins from retail prices.
October 14- Retail pricing, gross margin and contribution margin are all metrics retailers focus on. Each of these calculations impact producers and processors. It is important to understand your customer’s expectations and how you fit in their plans. Suppliers cannot set retails or margins but when you understand them, you can predict the impact on your products. We will explore these numbers in different departments across the store.
October 21- Unfortunately, we have trained consumers in food and beverage to look for items on temporary price reduction (TPR). Your customers expect you to offer discounts to support their TPR programs. Suppliers must build this into their marketing and sales plan to compete in today’s retail environment. When you understand how much to discount your price and what the results will be, you can build a much more effective plan. We will also illustrate how much you have to sell to make it all back.
October 28- There are many costs associated with producing great food and beverage products. You need to understand every cost right through until your product goes into the consumer’s shopping cart. We will explore some of the costs you incur after production such as brokers and distributors. There are many options and you should consider them all before you find the right solution for your products that will maximize sales and profits.
