[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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