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How much money do food product end users make?
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dittfarms
Posted 1/10/2024 20:57 (#10567303 - in reply to #10567255)
Subject: RE: How much money do food product end users make?


ottertail co mn
Every one marks there end up between 10 and 35% in the handling process

Health insurance, employees, fuel, maintenance and equipment costs are horrendous

Most publicly traded corporations have more fat than you can imagine when it comes to high end and middle management.

Funny you mention frito, I have less margin on my store from frito products than about anything else. They have waste galore. I told my delivery driver that they are gonna price themselves out of the market and he agrees. He is close to retiring so he doesn’t care.

These are the worst companies I deal with and in order

Pepsi Worst company I have ever worked with and this includes fedex.
Coke Good company but their recommended margin on products is 5-7%. CC fees are 3.5% so I don’t follow their recommendations
Frito Good driver overall average at best

The best people I work with are locally owned small operations. Every time I place an order with a local company they are happy and smile when they deliver. Think of a beef farmer selling direct, they appreciate their customers and are happy to see them.

One of The best companies I work with is green valley foods out of devils lake, they make pizzas called grubbersputz, best frozen pizza I have ever had it honestly tastes like a pizza you would get at a high end pizza shop.

Back to costs, think about farming, these companies are making a small percentage of gross but they waste a large amount on fat paychecks for people doing absolutely nothing. Farmers would not make it one year paying as many managerial positions as these traded companies. I had problems with Pepsi tried calling someone, probably 5 phone calls from mid to high end people all working in the same building. Pretty sure 1 person could do the job of the 5. My Pepsi sales man is so worthless that I could run a grocery store and do his job better than him. He shows up once a month and is in the store for 3-5 minutes and puts a completely useless order together. I tell people to support the local bottlers and buy a cheaper better product, it’s amazing how many people listen.

Finally,if you don’t like the price tell the store owner to tell the salesman that they are pricing themselves out of the market. Sometimes the store itself is not competitive with prices, but generally it is what the supplier is charging that is out of hand. Best way to get the point across is to buy a lower priced product and if you see a salesperson in a store ask them why they are ripping you off. My sales people that come in my store know they walk a fine line if they will be back next week.

These companies need you, you don’t need them

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