1. Sourcing Ingredients and Costing
Chapter Nine
Sourcing Ingredients and Costing

2. Chapter Overview Introduction Manufacturers and Distributors
Costing Materials
Profit
Discounting

3. Introduction Industry supply classes Brokers Sales reps
Manufactures Representatives
Technical sales reps

4. Manufacturers & Distributors
Prime Supplier Agreements (PSAs)
Q&A about suppliers
BakeMark
Dawn Food Products Inc.
Puratos

5. Costing Materials Materials = 25% Materials = 30% Yielded margins
Gross margin
Demand-based methods
Creating demand for your products
Capitalizing on impulse pricing
Demand pricing

6. Basic P&L format: components to profit

7. Discounting Occasional discounts Structural discounts Wholesale
Everyday bundling
Everyday pricing
Discount when purchasing 6 or 12
Class of customers
Marginal pricing