If you need to meet a particular price point on your bulk oil ingredients that may seem unreachably low, you do have a few options. You can reach your price goals, but you'll have to make some choices, and prioritize what's most important to you.
This discussion is especially pertinant for manufacturers who are trying to reach a particular target customer (which means you'll need to keep your own product within a particular price range) or if you're a co-packer that is packing for a brand that has specific price restrictions.
I worked with a customer in this situation a year ago. They came to me wanting a "really low price for Extra Virgin Olive Oil". It had to be Extra Virgin, and it had to be under $1.00 per pound. Unfortunately, I explained to them, that's just not going to happen.
So where do you go from there? Here's theadvice I gave them, on the best ways to drastically reduce bulk oil costs, meet the customers' price goals and move forward with a strategic plan.Continue Reading