Recipe for Success
It is exhilarating to produce products and figure out how to get them to market successfully. It can be a challenge to focus on the numbers but that is how you generate the best return for all of your hard work. When you understand the numbers that you control and that are out of control, you have a much better opportunity to deliver the best results.
Join us for these 4 FREE WEBINARS
at 2 pm Atlantic (1 pm Eastern).
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.
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.
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.
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.
Presenter Peter Chapman of SKUFood
Peter Chapman understands the food industry and he works hard to figure out where it is going. Peter’s experience includes both sides of the desk. Prior to working with suppliers and launching SKUFood, Peter worked for 19 years with Canada's largest food retailer, Loblaw. Peter is the author of A la cart; a supplier’s guide to retailers’ priorities and has provided food industry insights to Canadian Grocer, The Globe & Mail, Maclean's magazine, and Canada AM.