Re: [CH] Is their work in the "heat" business?
jim@wildpepper.com
Wed, 06 Aug 2003 19:40:04 -0500
The only problem is that the margins in the food business are VERY
tight, unless you're on the retail end of it. For example:
Manufacturing cost + 15% = Distributor cost
Distributor cost + 10% = Wholesale cost
Wholesale cost + 50% = Retail price.
These are general guidelines. If the manufacturing cost of a case of
sauce is $20, then the distributor is trying to live off of $3/case.
That's ALOT of cases to try and move to make any kind of living.
The wholesaler is trying to live off of about the same or less margin
($2.30/case).
The retailer requires the lions' share of the mark up because of the
tremendous costs involved with maintaining inventory, sales staff, etc.
If you need any further proof, take a look around ;-) ALL of us, except
for a very few giants, all work second jobs to pay for the fiery foods
stuff.
-Jim C
Mild to Wild(R)