2008 bulk prices

[markcasper]

U.S. Fancy/ light amber should be $2.99 lb RIGHT NOW, to equal the advance in equipment prices. Commercial should be $2.15 minimum.

[WESTVIRGINIAMAPLER]

SHOULD is the key word. 10 years ago I sold syrup for $ 10 @ quart, now I sell it for $12. With the price increase in the past 10 years, I should be close to $ 20 @ quart, but we all know that wouldn't fly.

[markcasper]

Brandon,

You are absolutley right!! We all are in the same dilema. The equipment cost vs. the finshed syrup price will limit how much expansion actually takes place in my opinion. People won't expand if their profit margin goes down.

We all should be selling syrup for $18 a quart, but I think $12-$13 is the limit and people will simply refuse to purchase it. That also will limit increases in production. Simply said......there is no good reason to increase your production, unless you can improve your expense to income ratio.

In 1998-99 I did some expansion and it took 1 gallon and 1 quart of syrup to buy a roll of tubing. Now.....10 years later it takes 1 gallon, 2 quarts and a 1.7 oz. glass maple leaf to buy the very same roll of tubing. At some point, we as producers will be held captive financially.

[jemsklein]

Well there is a guy up here getting $22 a liter. So I’m selling our syrup at maple fest for $15 a liter witch is cheaper then the other guy that sell it at $18a liter at maple fest.

[Hop Kiln Road]

Guys -

We all need to review our business models and especially our marketing, which hasn't changed since the sixties.

Look at the OceanSpray website. They have 70% of the cranberry market and they are not a gaint, international corporation, but a Growers Cooperative. What do cranberries and maple have in common? Both are indigenous foods, seasonal crops, spoil quickly, require a specfic land base, only grown in a small portion of the globe, large volumes that require reduction by heat & RO, etc.

The difference is back in the sixties, nobody particularly liked cranberries and people only ate them once or twice a year if at all. But the OceanSpray marketing and product innovation changed the consumers' perception of the cranberry.

We need to completely revamp how we market maple, cause bulk ain't going to be the answer.

Bruce

[OGDENS SUGAR BUSH]

I have often said only 2 parties make money in the syrup business.
1 manufacturers
2 dealers/ suppliers

[mountainvan]

Here's my thought on the subject. Making a living, or a decent profit, on selling bulk, forget about it. Selling wholesale to a retailer, forget about it. Selling the syrup yourself at a decent price, for you and the customer. You can make a profit. Do all the maple producers have people around them to sell all their syrup? Not by a long shot. That's why I drive an hour one way for the markets, that's where the peoples are. As for equipment, yes it's gone up, but what has not in the last year. My syrup went up twice. Small increases make a big difference at the end of the year. Get every drop of sap that you can, invest in a vacuum, and not the $5,000 ones from the maple companies. Someone here has some alamos for $100+ $900 for the releaser+ $350 for a motor( less for electric at tractor supply) $ 200 for fittings etc.. = $1,550. Avg $40/ gal paid off with an increase of 40 gals. You can do that with 500 taps. If you think your prices are too low, they probably are, but who's to blame for that? OK, I'm done giving my opinion.

[MR Electrician]

well theres allways the old union actions call a boycott or strike on the bulk buyers.
if no one will sell it to them then the price will go up .
when we can agree to only sell out goods for $3.00 a lb and no less then the buyers will start to listen.
but you all have to hold firm.
and theres a chance that it may backfire on you.
when someone is despirate for cash they will sell.
so thats my 2 cents

[maple flats]

Make your product the best and charge approprietly for it. This means raise your prices as needed. Do not try to hold last years price, unless everything else has done so. We sell a luxury product and as such should get a little higher inflation than the national inflation rate. (If prices drop due to a recession, lower yours less.) I have heard said several times that the price is left low because the guy across town sells for less, This is how we stay poor. We need to get top prices, but go up steady not in a big single jump. I used to set my prices before the season and hold for a year, I now float the prices, at times changing 2 or 3 times in a year and should change more than that. When was the last time you saw prices at the pump hold for a year?

[gmcooper]

Ok
James, If the other guy is selling his for $18.00 per liter why not sell for the same? If for some reason you feel you have to sell for less then try $17.00. Getting into a price war pissing contest doesn't make money for any one.

Hop kiln Road, Excellent point! I know there are others on here that work at marketing to build strong markets and create more demand for their product. I wish more would do so rather than riding on some elses coat tails.

Mountainvan, Obviously you do your homework and know what you need to get for your product. Those price increased probably were not an easy decision but yes they certainly do add up at the end of the year. Being effiecent is a vital component of any successful business. As far as bulk, in the right circumstances producers can and do make money! Being efficent is again key to making it work. 10,000 taps running to the sugarhouse works better than driving all over town emptying buckets on road side. A few years ago I knew of a few dairy farms that would have gone under if not for the bulk syrup they produced.
"If you think your prices are too low, they probably are, but who's to blame for that?" Absolutley! Does the local grocery store sell "boiling sodas" below cost? Are they willing to sell them cheap because they are afraid you won't spend $.50 a six pack more?

On the bulk prices I do think the packers will come up in price. My guess is they are working out deals with the big producers but keeping it quiet. Any syrup they can get for less they will, always have. My thought's now are they are getting a little nervous as the cold weather has reduced and delayed early production for many. If the cold forecasts hold for the next week or two we will all be getting nervous about our production for the year.

My 2 cents worth
Mark