[Terrapreta] marketing barbecue charcoal

Gerald Van Koeverden vnkvrdn at yahoo.ca
Mon Jan 14 00:03:03 CST 2008


 From my inquiry into charcoal marketing, I go the following response  
from an importer of charcoal into Canada:

"As for costs - the following breakdown - if you look in the stores  
at say Royal Oak or Cowboy at a 10 Kg bag it is composed like this:

The retailer gets around 40%
Distributor/ wholesaler 25%
Producer (delivered to Distributor) 35%

If a 10 Kg bag of Royal Oak retails for $15.00 the wholesale cost  
work out to round $5.25 per bag or $525 per ton if you take shipping  
etc out of the equation you can not produce for more than $300.00 per  
ton to be competitive.

If you add some characteristics in the mix like organic or very  
specific woods i'e. Apple wood your price will be higher but your  
market will be smaler.

Look at the prices for different types and sizes in the Home Hardware  
- the price model follows their build-up more or less. Canadian tire  
has to sell Royal Oak at a much lower margin to attract buyer for  
other higher margin outdoor products. "

Gerrit
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