From Here to There: The True Cost of a Product’s Lifecycle

When shoppers walk the aisles of their favorite retailer restocking their own shelves with french roast and black tea, they are increasingly looking at the price of what they are buying. And as consumers begin to realize that sustainable tea and coffee doesn’t have to cost more than their synthetic competitors, pricing becomes even more important than in years past. Rarely, however does the consumer stop to think how their favorite beans and loose teas arrive at that sticker price. That gap between the shopper’s thought process and the product’s true cost presents a huge opportunity.

Industry insiders know there are a handful of criteria that dictate price, mainly manufacturing, packaging and logistics. Most suppliers seek to reduce cost by relocating manufacturing bases, working with distributors and altering the amount of material used in their inner and outer packs. These are all worthwhile options, but inevitably, the final leg of the product’s lifecycle is cast aside as nothing more than a cost center. With the right approach, you can turn what was once a financial drain into a lean, efficient system that costs a fraction of what it once did. The key? Outsourcing, technology and consolidation.

Read the rest of CaseStack Marketing Manager Liz Boch’s article, published in the August 2010 issue of Tea & Coffee trade journal, at http://catalog.proemags.com/publication/4db43b67#/4db43b67/34.