Going Retail: Critical Issues and Strategies

To Succeed in the Retail Arena

Presented by the Hawaii Food Manufacturers Association
Friday, May 27, 2005
Pineapple Room, Macy’s
Ala Moana Shopping Center
______________________________________________

 

Margin Planning Chart

 

Cost to Produce Product

Manufacturer’s Margin

 

 


Freight out of Hawaii - $3.20 per cube

 

 


Distributor Mark-up – 25%

 

 


Retail Mark–up – 40%

 

 


Cost of Product on the Shelf (Customer/Consumer Price – Start here to make sure your price is competitive with similar products)

 

 

 

Other Costs to Incorporate in Planning

 

Brokers Fees – 5%

 

Food show Participation

 

Sampling / Demo Cost - $124 for four hours

 

Advertising

 

Sampling – Free Product