Lets Talk Pricing
One of the first things a retailer needs to consider in terms of pricing is to make sure they’re comparing apples to apples in terms of products. There are generally four key ingredients that dictate the price of a dairy mix: milk fat, milk solids nonfat, sugar and eggs (custards only). Every one of these products has an alternate or substitute available.
For example, nonfat dried milk (NFDM) is a milk solid nonfat that is often substituted with whey. Nonfat on average may be $1.55/lb while whey may be $.35/lb. What is the difference? The taste and functionality of the ingredients. High fructose corn syrup solids are a fraction of the cost of pure sucrose, producing an intensely sweet dairy base. And the list goes on.
Understanding pricing begins with knowing your product intimately. You must know what actual ingredients are in your product and have the trust and confidence in your manufacturer that they will continue to produce the same product at all times. With these guarantees in hand, we can begin our education about these individual markets and what we do as a company to address each. Please spend some time on our ingredient market page to see what is currently happening.
