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jamesc

The folding note.

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My way of think is If Airborne are purchasing it at $3 there must be an OK profit or they wouldn’t be buying it in. 

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4 minutes ago, frazzledfozzle said:

My way of think is If Airborne are purchasing it at $3 there must be an OK profit or they wouldn’t be buying it in. 

All I am suggesting is that you should do your own math once you have a good idea of all the associated costs, retailer margins and promotions and then decide. I am sure that there will be some overhead recovery at $5 for 500g and as part of the product manufacturing mix and overall Sales & Marketing strategy it may have value.  

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1 minute ago, Adam Boot said:

All I am suggesting is that you should do your own math once you have a good idea of all the associated costs, retailer margins and promotions and then decide. I am sure that there will be some overhead recovery at $5 for 500g and as part of the product manufacturing mix and overall Sales & Marketing strategy it may have value.  

When times are tough , the buyer dictates the price they will pay . At $10 per kg , the buyer will buy .

It has absolutely nothing to do with the profit or costs involved with getting it to market . 

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It's a lazy sunday afternoon.

The thermometer hovers around zero. The Team is out burning gas and ripping rubber  in the hills and I have the fire to myself .  Venison Tika as marinating in the fridge,  "The Buds" are  plugged in  and a big pot of coffee waits by my side.

Being a Sunday the Doctor's surgery does'nt open 'til six.

So, all is set. And as the coffee works it's magic, the tunes soothe a troubled mind and the glow of the fire warms the soul ,  I got to thinking.

And it goes something like this.

 

Philbee is right.

The crap is soon to hit the fan.

The worlds economic geniuses have screwed up ..... big time. But it's not only them.We too are guilty, the  business's that have laboured and grown on the good times, hit the speed wobbles and run up an overdraft to get us through the lean times, or taken out that sweet low loan on a new set of wheels or a  nicer view. Interest only loans to soften  the blow , luring us  through the doors like an  red light   beauty offering happy times.

 

It use to be that the Folding Note was backed by the Gold Standard. That was way back when, in a different era of austerity when we bought what we could afford, with paper, but paper being a burnable commodity it was backed by gold . 

Then we moved onto Zip Zap and, futures schemes, and gambling with other peoples money.  The US  did'nt have enough gold so started printing money  that looked like plastic and  was just another tradeable  that  we workers  could trade our souls for . Trouble is our souls got  greedy and to go Zip Zap was a heck of a lot easier than working. And as we all know ..... try redeeming a lotto ticket that's been through the washing machine twice.

I read an  article in the 'The Beekeepers Advocate' by the Wax Baron's , with whom we  love to do business. Their take on the present situation is it's gonna take five plus years to sort. 

 

So, Jimmy C's Big Think Plan on a lazy sunday afternoon , with the Buds plugged in and half drunk pot of coffee is to batten down the hatches.  If we can't pay cash, we won't buy. If we don't need it, we wont get it ...... and if we can't sell our produce for more than it cost to produce, then we wont sell ...... and that guys is the start of the recesssion.

 

 

 

 

 

 

 

 

 

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1 hour ago, Adam Boot said:

All I am suggesting is that you should do your own math once you have a good idea of all the associated costs, retailer margins and promotions and then decide. I am sure that there will be some overhead recovery at $5 for 500g and as part of the product manufacturing mix and overall Sales & Marketing strategy it may have value.  

 

OK, so it costs the beekeeper $4-6 a kilo to put honey in a drum,probably more.. 

Can you give us a cost to put that 1kg of honey from drum onto the table? 

Sure, sure, horses for courses... Let's say pasture and bush... Bought at $5 a kilo. And priced on the shelve at $14 a kilo. 

 

 

 

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1 hour ago, M4tt said:

When times are tough , the buyer dictates the price they will pay . At $10 per kg , the buyer will buy .

It has absolutely nothing to do with the profit or costs involved with getting it to market . 

So if it cost you $12 per kg total to sell at $10 you would still be up for it then??

 

 

5 minutes ago, Gino de Graaf said:

 

OK, so it costs the beekeeper $4-6 a kilo to put honey in a drum,probably more.. 

Can you give us a cost to put that 1kg of honey from drum onto the table? 

Sure, sure, horses for courses... Let's say pasture and bush... Bought at $5 a kilo. And priced on the shelve at $14 a kilo. 

 

 

 

Not exactly no. That would give you far to much information. But you can do some rough calculations yourself. The jar an the shelf will be a 500g. at $7 inc get. $6.08 ex get. 

So the Kg retail is $12.16 ex get. Now deduct transport into the packer and out to the Store. Testing in and finished goods, 2 jars, 2 lids, 2 labels, 2 seals, cartons, pallet, strapping wrapping. Compliance, Labour, manufacturing overhead, sales and marketing costs, Credit terms to the retailer etc etc 

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I always worked on the premise that if the packed price on the shelf was 7bucks for half a kilo, then the price paid by the packer to the beekeeper was around the 7buck/kilo mark

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29 minutes ago, jamesc said:

I always worked on the premise that if the packed price on the shelf was 7bucks for half a kilo, then the price paid by the packer to the beekeeper was around the 7buck/kilo mark

Take your $7 deduct the get then deduct your estimated margin for the retailer then see what can be achieved with the difference ? 

2 hours ago, frazzledfozzle said:

My way of think is If Airborne are purchasing it at $3 there must be an OK profit or they wouldn’t be buying it in. 

Speculating

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1 hour ago, Adam Boot said:

So if it cost you $12 per kg total to sell at $10 you would still be up for it then??

No not at all, however , what is for sale now has already been produced, so it has to sell somewhere, someway , and if it’s below cost , that it has to be to keep the cash flowing .

I myself am entering the second year of attempting to produce no honey . I entered late , so am happy to back out early. I would prefer to make honey , but why would I ? I got out of making milk because it was clear the world did not value what I produced as much as I did . You cannot force people to pay more than something is worth to them  so you need to be able to adapt for the greater good 

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So,whose honey is that on the pak n save shelf for $5? Jus asking cos iv never seen that brand before?

As in,company/producer?

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To me everyone produces "clean" honey except some are "cleaner" than others.Now the local consumer wants to know the story behind the honey.That sells your honey,I can tell you.I have run out of honey to sell so will wait and see what happens in the season coming up.I only sell at farmers mkts and normally sell out.

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3 minutes ago, Bighands said:

To me everyone produces "clean" honey except some are "cleaner" than others.Now the local consumer wants to know the story behind the honey.That sells your honey,I can tell you.I have run out of honey to sell so will wait and see what happens in the season coming up.I only sell at farmers mkts and normally sell out.

What's the annual cost down the coast to keep your NP1 ?

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All up with all charges about $500

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58 minutes ago, Bighands said:

All up with all charges about $500

So that's around  3 or 4 hives to pay that overhead. It's quite a wodge of money for not much in my book. I'm afraid if I had more hives/honey I'd be among the ranks of the underhanded cheating-the-system pirate sellers. I wonder how many there are on here ?

Edited by yesbut

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1 hour ago, Bighands said:

To me everyone produces "clean" honey except some are "cleaner" than others.Now the local consumer wants to know the story behind the honey.That sells your honey,I can tell you.I have run out of honey to sell so will wait and see what happens in the season coming up.I only sell at farmers mkts and normally sell out.

I see Honey going through a local Freight Hub that is so clean that it is not allowed to touch the ground at the depot unless it is up on a double pallet.

The depot requires regular inspections, ( initially 3 monthly) to maintain the integrity of the cleanliness.
All the sparrows were forced to vacate the premises as part of the purge on uncleanliness.

Then someone said, Hey 3 monthly audits is a bit OTT , after all it is just Honey thats collected from an old wooden box in the bush, so the frequency was reduced.

My concern is for the Sparrows, this nonsense must stop

 

 

Edited by Philbee
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4 minutes ago, yesbut said:

So that's around  3 or 4 hives to pay that overhead. It's quite a wodge of money for not much in my book. I'm afraid if I had more hives/honey I'd be among the ranks of the underhanded cheating-the-system pirate sellers. I wonder how many there are on here ?

It depends on the quantity produced/hive and the price/kg you sell at.Do not forget the honey I sell is not cheap and is packed in glass and buying this product i N.Z. needs to be looked at

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12 hours ago, yesbut said:

So that's around  3 or 4 hives to pay that overhead. It's quite a wodge of money for not much in my book. I'm afraid if I had more hives/honey I'd be among the ranks of the underhanded cheating-the-system pirate sellers. I wonder how many there are on here ?

Wodge ...... That's a nice word !

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As I understood it, biennial NP1 renewals are normally around $150+gst (CPI adjusted) so it could be considered to be $75 per year. The cost of setting up $500 or more is a one-off cost (unless you are naughty or that you change your setup completely and have to start over). 

 

the 2018 apiculture report (https://www.mpi.govt.nz/dmsdocument/34329/direct) is a report on costs of beekeeping so you know what wodge commercial beekeepers earn and spend. However so far as I can see they only list RMP costs and they don't show any costs about NP1 whatsoever. Maybe I'm just reading it wrong.. For single site beekeepers, the NP1 rego fees get collected by councils and are then forwarded to MPI, so far as I know. Maybe it is so small they ignore it.

 

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we were on the NP1 which did cost some thing like $575.00 ish, then after nine months we had to change to NP2 because we cream honey, but now we can make pickles etc, we weren't charged for the change

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