06-15-2011, 08:16 AM
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Babemeister
Industry Role:
Join Date: Jun 2001
Location: Madison
Posts: 7,081
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Quote:
Originally Posted by TheDoc
Of course, but we also make our own bread... so I know what the raw materials cost.
How much have your raw material costs gone up over the last decade? Outside this year...
We don't have a decade of stats, excluding this year our raw costs have gone up about 25%, with this year it's a pretty big ass jump.
I see what China is doing, while it may cost us both more today, it should in the long term create a longer stable price, allowing us to forecast our future costs with much better accuracy. Something China has been bitching about with the various markets for awhile now, and kinda a smart business move if it ends up happening.
Go in with a couple other companies next time and buy in even larger bulk... the price will go down. That's what they want, less small orders, more larger orders, and we distro here ourselves, lowering the projected costs for them.
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We purchase now in the largest bracket. We order train cars(180,000 lbs) every three weeks. Rubbermaid pays the same price as we do.
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