Selling cheap does not drive market down

[blissville maples]

I can't wrap my head around how some think selling syrup slightly less than they potentially could drives market down......for instance selling at 40 a gallon, or selling 2.25 bulk to a client when he's paying 2.50 now......in fact it does just the opposite- speeds up consumption.....there is only one reason that the prices are down and that's a flooded market, weather it's due to over production or lack of marketing. These Packers are charging the same per lb to say general Mills cereal or hood ice cream, they have not reduced their price whatever it may be......we producer have had our price lowered because these Packers are drowning in syrup, they dont need anymore and can't jeoporadize having a huge overstock......by one selling 50-150 gallons to a buyer at .25 less than what he's paying now will only speed up his consumption.....pretty unlikely he's going to post on Facebook or go tell everyone that he gets it for .25 less than he was and every bulk buyer of syrup should only pay that and stop buying at the .25 more price.....that's obsurd......ive been in business, not just syrup, for 13 years and certain customers are only going to pay a certain price for what they use or service they need, does not matter if you like it or agree, that's just how it is. In my line of business some pay 1.90 a square foot and other cheapies pay 1.20.....whats funny is the cheap budget spec home builder never pays 1.90 and the high end builder never pays 1.20 a foot.....funny stuff,.......look at Farmers they get 15-20 a hundred for milk they have no other place to sell except a packer like Cabot, they can't sell 600 gallons of milk a day and certainly can't afford a bottling plant- Sugaring is falling into same footprint, and it's due to marketing ability, only the packers and bottlers have large capabilities to market and sell huge quantity

[Parker]

????? If im selling to a restraunt for $50 a gallon and they go on craigslist and see they can buy syrup for $40 a gallon they call me befor the next delivery and say you need to macth the lower price,,,,i think the price has just been driven down.....oversupply drives the price down..(with oversupply and lower bulk prices now more producers are botteling and selling their syrup to consumers,,more syrup on the retail market means more compitition and lower prices.."race to the bottom") ..the restraunt goes thru 2 gallons a week...they are not charging less for the syrup, they are making more money the consumption remains the same.

To solve the problem we need to expand the market beyond what it is now. A fraction of the population consumes syrup,,,imho,,,,the answer is to create more demand,,,not slice your neighbors bag,,,,,i.e. undercutting price......

The packers are not going to want to invest in expanding a market they dont own because it wont directly bennift them...cant blame them,,they are in biz to make all they can,,,,,who would bennifit from more demand? The producer....all of us

So who has to expand demand,,,well,, we can see how great a job the current powers that be are doing...so i would geuss it would be in our best interest to figure it out ourselves.....and what would be a better place to do that than a great fourm like this...

So blissville,,,,how are we going to grow the worldwide market? Why would you want to sell for less when there is a whole world of consumers out there?

[western mainer]

In Maine Most are selling a gal. for $60.00 And sales are good! Must be that good Maine Syrup!
Brian

[blissville maples]

????? If im selling to a restraunt for $50 a gallon and they go on craigslist and see they can buy syrup for $40 a gallon they call me befor the next delivery and say you need to macth the lower price,,,,i think the price has just been driven down.....oversupply drives the price down..(with oversupply and lower bulk prices now more producers are botteling and selling their syrup to consumers,,more syrup on the retail market means more compitition and lower prices.."race to the bottom") ..the restraunt goes thru 2 gallons a week...they are not charging less for the syrup, they are making more money the consumption remains the same.

To solve the problem we need to expand the market beyond what it is now. A fraction of the population consumes syrup,,,imho,,,,the answer is to create more demand,,,not slice your neighbors bag,,,,,i.e. undercutting price......

The packers are not going to want to invest in expanding a market they dont own because it wont directly bennift them...cant blame them,,they are in biz to make all they can,,,,,who would bennifit from more demand? The producer....all of us

So who has to expand demand,,,well,, we can see how great a job the current powers that be are doing...so i would geuss it would be in our best interest to figure it out ourselves.....and what would be a better place to do that than a great fourm like this...

So blissville,,,,how are we going to grow the worldwide market? Why would you want to sell for less when there is a whole world of consumers out there?

First of off if a restaurant is buying for 50 a gallon and take 2 gallons they are not buying bulk, that's retail, and they should consider a cheaper supply being they, as with their other items, should be buying wholesale.....as far as I see they are being overcharged, causing their prices to potentially be higher driving g business down......

Why wouldn't Packers want to invest in expanding a market? They are the ones holding the market in their hands Making the most profit, they have not reduced their prices likely increase when gas went up. But we are getting less bc they are drowning In syrup....the supply and demand ends at the packers, they cut it off by dropping price like Bascoms did a month ago. You think they lowered price because they can't sell anymore, no not at all they are at 90% capacity..... The guy told me down there if it keeps up they may have to stop taking syrup now do you think that's because they stop selling it not at all they are at capacity it's that simple..... Bascoms already did a huge expansion a few years back, they may be considering another.....

I want to sell my syrup less because I will sell more, especially to some of those who aren't as well off financially​ wouldn't that make sense.....why do you think Mercedes Doesn't sell as much as Ford, because they cost more, but Ford has higher profits than Mercedes.....hmmmm can't understand it

[blissville maples]

Lol, the packers are the market....other than what you sell privately......you have some private buyer only buying from you taking 2000 gals?? I didn't think so Bascoms is the market....state government isn't doing nothing to boost sales nor is anyone else.....what sells syrup is the pricetag and us!!

[blissville maples]

So In other words you feel to create a more vibrant larger market we must charge more and make people hmm and haw about if they can afford it......or are you just tapping a blue and white collar market, looking at a higher price to boost bottom line and not volume of sales to boost bottom line, as Mercedes did??....

[ToadHill]

If I only have x number of trees and I sell my crop for $50 a gallon and somebody comes along and undercuts me for $45 a gallon I have a choice to make. I can maintain my price and try to find new buyers willing to pay $50 or I can lower my price to be competitive. If I can't find new buyers I'm stuck so I lower my price. Guess what, then my competition does it again forcing me to make the same choice again. It only ends when we've all sold our product at a lower price (the bottom). You can only make more money selling at a lower price if you have the ability to expand production. That isn't the case for many, if not most producers.

[spud]

Your spot on Randy. There is not much else we can do unless we travel the country looking for new market. And if we choose to do that then shortly after we find that new market some other sugar maker will come in and sell for less.

Spud

[blissville maples]

Do you understand that your talking about a retail market, not a wholesale one?? Quite a difference. Expand producion is one way, producing more efficiently is another and has bigger payback faster little to no investment.....you either need to go big or stay micro, the 500-2000 tap range is not profitable unless you can market all your own syrup to dedicated loyal customers who like you and don't shop around............it's the packers running the show, and we must take over cut em out....I just grabbed a small whiskey maker, only 100 gals a year for now but he won't be buying from Goodrich anymore!!

[markcasper]

The guy told me down there if it keeps up they may have to stop taking syrup now do you think that's because they stop selling it not at all they are at capacity it's that simple...

Instead of not taking syrup.........? why wouldn't syrup just go down to $1.00, or .50 a pound. per lb.? If we truly have a free market.