The Top 4 Pricefx Functions for Your Food & Beverage Company
The Top 4 Pricefx Functions for Your Food & Beverage Company In present circumstances, if your food and beverage company is forced to implement a cost increase of $1 on your 12-ounce bags of coffee or 2lbs bags of sugar, in reality, how much of that $1 can you expect to pass on in increased costs to customers? Or should it be even more than $1 to preserve your profit? In that relevant light, what tools are your food and beverage company using to manage unpredictable scenarios like this and the myriad of unique pricing challenges currently facing the industry?...
Food & Beverage Pricing Strategy: Tips, Types & Examples
Food & Beverage Pricing Strategy: Tips, Types & Examples Food and beverage manufacturers have watched in horror over the last 2 years while your input prices have skyrocketed and placed pressure on already constrained margins. What’s more, it is not exclusively food and beverage ingredient prices that are swollen to record levels. Record fuel prices and labor shortages are also an enormous part of the margin compression puzzle. Roll in other factors into the pricing equation like meat prices undergoing rapid rises as the cost for grain to feed animals climbs, and beverage makers are facing a jump in packaging...
The Food & Beverage Industry’s Top Trends & Pricing Strategies for 2022
The Food & Beverage Industry’s Top Trends & Pricing Strategies for 2022 Food and beverage manufacturers have watched the last 12-18 months while the prices in raw materials have skyrocketed and placed pressure on already constrained margins. What’s more, it is not exclusively food and beverage ingredient prices that are swollen. Work shortages and increased labor expenses are a big part of the margin compression puzzle, not to mention fuel and distribution costs. Even the prices and availability of the wooden pallets that you use to pack and distribute your products are being squeezed. However, it is not all desperation in the latest food & beverage industry trends and...
Price Optimization in the Food and Beverage Industry? Oh, Yes!
Price Optimization or F&B in 3 Steps As a company in the Food and Beverage industry, you know that your product portfolio, types of customers, and regions served change and grow along with you. Blanket pricing doesn’t work, but the more complex your organization becomes, the harder it is to optimize prices according to product type, customer behavior or region. And if your margins don’t reflect that New Yorkers go crazy over bagels, that plant-based nutrition and local produce are trending, or that tariffs on exports to the UK are now dearer than to Ireland, you’re not optimizing prices. Optimizing...
Manage
Pricing with Excel… and Other Ways to Lose Money
How to Plug the Leak and Stop Losing Money With Excel In 2003, Canadian power generator, TransAlta, lost $24 million due to copy-and-paste mistakes. Two years later, Kodak added $9 million to its third-quarter loss due to a typo. And in 2012, JP Morgan lost $6 billion due, in part, to a copy-and-paste error in Excel. Statistics have shown that 88% of spreadsheets contain significant errors. So out of 10 spreadsheets, only one is showing you accurate data. Do you really want to manage pricing off that? Unfortunately, all too frequently, a decimal place can be the difference between an...
The Keys to Reducing Cost and Risk in the Food and Beverage Industry
8 Pricing Essentials for Reducing Cost and Risk in the Food and Beverage Industry Have you been struggling to mitigate costs and control risks in an attempt to reach margin targets? Are you, like many, still using cost-plus pricing methods, where price execution is based on static rules or formulaic price calculations that aren’t updated in real-time and are, therefore, unable to respond to changing market dynamics? Are your pricing deviations often inconsistent, meaning pricing can’t be optimized according to customer willingness to pay? Is ad-hoc trade spend based on gut feeling rather than data-driven insights, leading to uncertain revenue...