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LETS GET DOWN TO BUSINESS.

Question :
We make native rau and real food fermented Tī (more commonly known as kombucha but have moved away from the kupu, because it’s culturally inappropriate as its Japanese still use today for a Inu completely opposite, clear misrepresentation of their Reo… so we are making the changes necessary to move away from the kupu… a few patai..Tuatahi, how to we now market our Inu with a changed named which no one knows or understands what we are.. any suggestions would be great.Tuarua, how do we market our product when we create in a Rongoaa space with Rongoaa rau and tikanga. We are interacting with 2 opposing Mauri, how do we seperate the 2 Mauri.Tuatoru….. lastly how do we price our Inu, we have won bronze medals for 2 Inu in the outstanding nz food producer awards, we also had all our Inu be finalists in the anz Artisan awards.. we are currently the only ones offering real foods with Native rau.. most use Tī ora tea bags or fruit tea bags to flavour, but we wanted to reduce our carbon footprint and impact on Papatuuaanuku so we only use, plants, ti rau, Putiputi and hua rakau to flavour so it can be taken and returned. We are currently stocked 6 stockists, we agreed on a shitty wholesale price just to get our product out there, we had only traded a full month before covid hit.. but our brand is slowly getting out and we would like to know how to price accordingly.

Question submitted 16/11/20 @ 11:36am
Industry: Food & Beverage
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    Morena.
    Congratulations on your business progress to date. Getting started is hard!

    You seem to have a clear vision for what you will stand for, which is great. In terms of costings there are two approaches – first understand what the market will bear. What is the competitive product retail cost across different channels and how much margin do you need to offer retailers in order to get them to take on your product. You will usually the find that pricing and margin expectations are different by channel, and you need to put a plan together that everyone feels they are being treated fairy. eg: don’t give one small customer a cheaper price than a big customer or the big customer will just come back and want an even better price!

    From there you can form a view of what retail and wholesale price you need to meet.

    Then the harder part, a bottom up costing of how much it costs you to make the inu. This needs to include ingredient costs, processing costs, packaging, logistics and overheads.

    All can be done in a spreadsheet, although food technologists often use specialized programs that will assist with product costs and nutritional analysis for your NIP at the same time. if you want to go down that path then maybe contact Cathy @ MCfoodies for assistance.

    Once you have that number, look at the relationship between the cost of goods and selling price and check you will make some money!

    Nga Mihi
    Vicky

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