ronjhall
Super Star Member
I can not read French. But being from Michigan is a good thing. When we get to AZ next month. I plan to show my Wisconsin neighbors this post.
They may order some of your EVOO.
I wish I could do that Kyle, however when I ship to the country clubs I make one consolidated shipment and once it hits the USA I get it trucked to the various clubs. This spreads the freight costs out across all the customers and drives down the shipping costs as my customers buy it at the wholesale price plus freight. I would only have enough to send to one club and then the shipping costs would make my product to expensive, so it is not a feasible option, it would basically double their cost and I already get a very good wholesale price for our olive oil. I can ship it to Amazon and absorb that high shipping costs because I am selling it at a retail price (well I am priced a bit below market for Premium Olive oil).Rox, I'm not telling you what to do, but I will tell you what I would do.
I would do my best to send available oil to big customers whom have historically bought large quantities. I would forego the amazon customers until a better harvest. Take care of the ones who take care of you, year in and year out.
Unless after all, you would prefer to sell to a large number of people the small quantities on Amazon.
And to you too bindian.Merry Christmas Roz............and Happy New Year.
Merry Christmas hugs, Brandi
OK, that makes sense. Maybe just let your big customers know the circumstances. Thanks for explaining. Have a safe trip. Sure seems like very high price an extra bag 30 tins x 4.86 = $145.80 Ouch! Next year take a cruise ship.I wish I could do that Kyle, however when I ship to the country clubs I make one consolidated shipment and once it hits the USA I get it trucked to the various clubs. This spreads the freight costs out across all the customers and drives down the shipping costs as my customers buy it at the wholesale price plus freight. I would only have enough to send to one club and then the shipping costs would make my product to expensive, so it is not a feasible option, it would basically double their cost and I already get a very good wholesale price for our olive oil. I can ship it to Amazon and absorb that high shipping costs because I am selling it at a retail price (well I am priced a bit below market for Premium Olive oil).
I hope to continue to build up my Amazon customers and have them become repeat customers. I know I have to increase price but I am holding off as I feel I am still introducing the product into the Amazon space. Next year we should have enough olive oil to meet both my markets, wholesale & Amazon retail. Getting over 50 reviews really helps a lot, and I hope that continues. Thanks for your advice.
Paying for an extra bag for our flight to the States, those 30 tins of AOC de Provence, that will cost 4.86 per tin. Not insignificant. If I want to grow those Amazon sales I have to have the inventory. You have to grow a business, and as you grow you make more income via scaling up, but you have to have customers. There are literally over 200 pages results when you search olive oil on Amazon. There are only a few producers who have over 50 reviews, so I think I have considerable room to grow on the platform. My first products were only on the platform starting at the beginning of July so thus far I am pleased with the results.
Obviously I do not want to discuss exact figures but I will say I had a dream to sell $XXXX on Amazon in a year, with a stretch goal of double that. These were just goals I made for myself, a target I wanted to achieve. I made my first goal in November, or in 5 months, and it seems to me, fingers crossed I will meet my stretch goal in the spring. I have to struggle a little bit with high freight costs because I was not able to ship it in a consolidated shipment with my other customers orders, which of course those high freight costs come right out of my profit, but as the sales increase and I ship higher quantities in a consolidated shipment I can really drive down those freight costs and get a better profit. Before you can ship a lot, you have to have a feeling that there will be sufficient customers to buy it and that is what I am doing now, building up my customer base.
There is more to it than just growing the olives, I have the costs of the tins, the labels, printing is not cheap by the way, I probably have 75 cents a unit, maybe a bit more in just labels. I have to label the bottle/tin, I place 5 labels on each tin, I have to add two labels outside the bubble wrap, I have to label each case, then I have to label the pallet. Then the boxes I ship them in, custom made for us, not in expensive. I have expenses in the containers and labeling, so even though we grow the olives and press them ourselves we still have additional expenses. Then Amazon takes their cut, so every step along the way those expenses have to come out of my profit. I will get the economy of scale shortly, but first I gotta have customers. I know my profit will grow, not with my next shipment but with the one after that, that is where I will be able to cut expenses by getting better shipping costs, a better price on my tins by placing a pallet order, printing will probably not change though.