Pricing Syrup

[WolfCreekMaple]

Hey everyone! I am trying to figure out pricing for our maple syrup. Usually I look locally and decide pricing from there but I want to start thinking more independently and actually looking at my cost of goods.

Starting off with basic (easier) things to account for.
* Bottles
* Labels
* Evaporation rate (variable I know)

On average our evaporate can evaporate 25 gallons an hour, again I know this is variable from day to day. I can figure out what our average sugar content is of our grove. Is it easy enough to say, using the rule of 86 (Our average sap concentration was 2% so that means it will take 43 gallons of sap to produce 1 gallon of syrup, and I can produce 1 gallon of syrup in 1.72 (43/25) hours) Numbers wise is it that easy? I know it takes a long time and more sap to actually sugar our pan. We also run an RO so I have to figure out the economics of that. But just starting off with the bare basics, am I on the right track?

Obviously this does not account firewood either. I'm just starting with the sap/evaporation portions.

[ecolbeck]

If your goal is to price your syrup based on your overhead (cost of materials and value of labor) you're going to find that the larger market forces at play will make that very difficult. The market price of syrup is based on supply and demand, not your individual costs. If nearby producers can make syrup more efficiently than you, they can keep their prices down. Consumers will prefer your competitor's lower priced syrup to yours unless there is a way you can differentiate your product from something produced at a larger farm (or corporation). I would focus on what makes your product special, and then price accordingly while keeping an eye on maximizing sales.

[Russell Lampron]

You need to find out what other producers in your area are selling it for and set your prices to be competitive with them. More than likely it will cost you more to produce it than you'll be able to sell it for when you figure in an hourly wage.

[WolfCreekMaple]

If your goal is to price your syrup based on your overhead (cost of materials and value of labor) you're going to find that the larger market forces at play will make that very difficult. The market price of syrup is based on supply and demand, not your individual costs. If nearby producers can make syrup more efficiently than you, they can keep their prices down. Consumers will prefer your competitor's lower priced syrup to yours unless there is a way you can differentiate your product from something produced at a larger farm (or corporation). I would focus on what makes your product special, and then price accordingly while keeping an eye on maximizing sales.

Right but this doesn't answer my original question of numbers :) I want to see for myself what those numbers turn out to be and make a decision based on our quality of syrup.

[WolfCreekMaple]

You need to find out what other producers in your area are selling it for and set your prices to be competitive with them. More than likely it will cost you more to produce it than you'll be able to sell it for when you figure in an hourly wage.

Right but this doesn't answer my original question of numbers I want to see for myself what those numbers are and make my own personal choice with all the information at hand :)

[OrangeAgain]

Cornell has several maple business income calculators in Excel format that will help you analyze your expenses and pricing structure. Go here: https://blogs.cornell.edu/cornellmaple/cornell-maple-calculators/

[motowbrowne]

I like this idea (enterprise budget might be the name) and I think it's a great thing to do, even if it's not the only info you use to set your price. The costs, energy, bottles, filters, and even equipment (divided by how many gallons it can produce over its service life) is pretty easy to figure out. Labor is gonna be tough to keep accurate track of though.

[Kh7722]

Russ,

I agree with you on most things except this. We sell ours for more than all others around us and sell more in volume and dollars than anyone else. I convinced one guy to raise his prices and he sold more. Producers can base their numbers offbof others production. Pay yourself and cover your costs. The price is the price.

Kevin


You need to find out what other producers in your area are selling it for and set your prices to be competitive with them. More than likely it will cost you more to produce it than you'll be able to sell it for when you figure in an hourly wage.

[WolfCreekMaple]

Cornell has several maple business income calculators in Excel format that will help you analyze your expenses and pricing structure. Go here: https://blogs.cornell.edu/cornellmaple/cornell-maple-calculators/

Wonderful thank you!!

[WolfCreekMaple]

Russ,

I agree with you on most things except this. We sell ours for more than all others around us and sell more in volume and dollars than anyone else. I convinced one guy to raise his prices and he sold more. Producers can base their numbers offbof others production. Pay yourself and cover your costs. The price is the price.

Kevin

Exactly. We are the most expensive in our area and no one has complained about the pricing and are so impressed with our quality/flavor. If I make a premium product I can charge premium pricing. Free market :)

[WolfCreekMaple]

I like this idea (enterprise budget might be the name) and I think it's a great thing to do, even if it's not the only info you use to set your price. The costs, energy, bottles, filters, and even equipment (divided by how many gallons it can produce over its service life) is pretty easy to figure out. Labor is gonna be tough to keep accurate track of though.

Thank you! Businesses have to start thinking more independently and actually look at their numbers rather than relying on someone else to come up with pricing and follow them. Sorry I'm not staying up til 4AM to not make a profit hahaha!

[motowbrowne]

Russ,

I agree with you on most things except this. We sell ours for more than all others around us and sell more in volume and dollars than anyone else. I convinced one guy to raise his prices and he sold more. Producers can base their numbers offbof others production. Pay yourself and cover your costs. The price is the price.

Kevin

Same here. I don't offer any price breaks after a case of quarts. I have a few people that buy multiple cases. I've offered to put them in touch with bigger producers and they usually just keep buying mine. I won't complain.

[1arch]

I like to track labor and expenses and see where they land at the end of the year and then compare to the outside market pricing which many of us are forced to work within. Definitely better ways to make a few $$'s but as with many on this thread there are ancillary benefits hard to put a dollar value to.
My early years I'm sure my labor value was far in the negative $/hr. However a decade later and based on 2021 volume of 235 gallon of finished product I was able to earn active family participants ~$20/hr after other expenses. Wolfcreek I congratulate you for wanting to understand your investment. I have seen other small producers at farmer markets with very low prices in comparison and wonder if they are aware of their true cost of production.