Price breaks for multiple quantity purchases.

[bison1973]

How do you guys figure when to give price breaks to customers on the quantities of syrup they puchase? I have someone interested in possibly purchasing 10 or 20 gallons in the gallon jugs. Do you give any type of break for that? How about a store who is looking at 100 gallons(half in gallon jugs and half in five gallon containers). Looking for input as I'm learning the "business" side of maple production.

[Thompson's Tree Farm]

If someone is going to purchase 10 or more gallons all at one time, I would give a discount. As far as the store, set up a wholesale price specifically for those that resell your product. I sell at a retail price at the farm, a wholesale price at the farm and at bulk price. My daughter lives in NYC and we have another price for syrup sold there. Just make sure you know which customer you are discussing price with on the phone.

[bison1973]

Could you expand on the differences between wholesale and bulk sales?

[brookledge]

Bulk sales are when you sell to a packer that then cans it themselves. Like selling to Bascom or Maple Grove etc. Wholesale is when you sell syrup that you have caned and will be resold by another person.
Bulk sales you basicly have no liability whereas wholesale and retail are on your insurance
Keith

[bison1973]

So what is a good rule of thumb to use as far as how much wholesale pricing should be under retail?

[spud]

Hey everyone,

It has been over twenty years since i sold bulk syrup in Vermont to the VMSA. I got out of sugaring in 1989 and moved to Alaska with my dog. Well the dog died and i am now married with 7 children and we are looking to move to vermont. I only want to sell bulk and was wondering what they paid per pound this year? When i left in 1989 i got $2.10 lbs for fancy. Here in Alaska my friends tap birch trees and sell their sap. I can buy maple syrup in the store for $23.50 a quart. I can't wait to introduce my wife and kids to sugaring. You guy's and gal's are so lucky to be able to enjoy sugaring. I hope you all have a great 2011 season.

Mike:)

[sapman]

Hi Mike, welcome back to sugaring! Wow, those were good prices in '89. I started buying bulk in 2000, and fancy was around $1.90 then! Price has been well over $3, even up to $4/lb a couple years ago during a shortage. I think now good syrup is from $2.50-$3.

Keep us posted on your progress! BTW, where in Alaska are you located? My neice moved back down from Anchorage last year.

All the best,
Tim

[Amber Gold]

Here's what I do, if it's a 5 gal order, I give a 10% discount order. If it's a 10 gal order or larger, I give a 15% discount. It works and everybody's happy.

I'd love to find someone looking to buy that much syrup at once. I'd give them at least a 15% discount and maybe a little better. Buying in 5 gal jugs, they are buying in bulk, so those prices should probably be closer to the going bulk rate. I'd either have them buy the 5 gal jugs outright or put a reimbursable deposit.

[bison1973]

So in 5 gallon jugs you'd be selling your syrup for what amounts to be about $34 per gallon (here bulk selling price from the large packers is $3.10/ lb) plus cost of container? I guess that just seems kind of cheap to me.

Thanks for the thoughts on retail discounts. But what about wholesale pricing. Where about should that be in relation to your retail pricing?

[Amber Gold]

If selling in 5 gal jugs, the price would be more than the going bulk rate. There is some time involved in packaging 5 gal cans. If the going rate is $34/gal, then it'd probably by $42 per gal plus container. This is a 25% discount from retail prices with less time involved and no container cost so this seems fair to me. I wholesale 1 gal jugs for $48 and retail for $56.