Sourcing Ingredients and Costing

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Chapter 1: Introduction

Sourcing ingredients & costing

Presentation transcript:

Sourcing Ingredients and Costing Chapter Nine Sourcing Ingredients and Costing

Chapter Overview Introduction Manufacturers and Distributors Costing Materials Profit Discounting

Introduction Industry supply classes Brokers Sales reps Manufactures Representatives Technical sales reps

Manufacturers & Distributors Prime Supplier Agreements (PSAs) Q&A about suppliers BakeMark Dawn Food Products Inc. Puratos

Costing Materials Materials = 25% Materials = 30% Yielded margins Gross margin Demand-based methods Creating demand for your products Capitalizing on impulse pricing Demand pricing

Basic P&L format: components to profit

Discounting Occasional discounts Structural discounts Wholesale Everyday bundling Everyday pricing Discount when purchasing 6 or 12 Class of customers Marginal pricing