Monday, September 20, 2010

News Headline and Comment

I saw a headline this morning: "Michigan Announces $25 Million Settlement for Alleged Price Fixing Conspiracy."

Nobody is ever going to accuse our company of price fixing!

We have worked for 10 years to lower the price of natural and organic foods.

I remember when I started my natural food distributing business back in the late 70s. There were 4 large natural food distributors in Los Angeles. They all worked on the exact same 25% profit margin. They all had the exact same discount structure. The only difference in their pricing, was one of them rounded their prices to the nearest half or whole cent, and the others charged the exact price (.333 cents for something versus rounding to .335).

My goal then - as it is now - is to sell our products at a small profit. We don't look at other companies' pricing and say, "wow, we could charge double the price like they do." We have been the discounters, the renegades, the people that "ruin the industry's profit margins" - and we're proud of it.

No comments:

Post a Comment