How much will you pay for a kilo of turmeric powder? RM10, RM 20, RM30 or less than RM5. I always confused about my thoughts for the value of spices. How do we judge the price of each item? The standard costing formula, we add in everything we do from the farm until retail market. The cost included farming, crops treatment, research, grading, cleaning, logistics, storage, production, research, marketing, distribution & promotion. If we make it details, how much do you think a spice will be?
I would say that the price is beyond the value I can sell on the market, regardless which market segment, from upstream to downstream. Even a break-even point is a myth.
The recent pressure on economy slowing down; food cost increased beyond our control. The impact is no longer an indirect factor; it is directly influencing our daily activities. How to save more? How to select the best option? Lower price better quality?
Do you think that spices and herbs are essential “add-on” to our food as an enhancer of taste? I remembered that I was once furiously promoting spices marination as an “added” value of meat. Simplifying the process of cooking and provide better value to consumers. We successfully achieved our “target” because the trend of ready-to-cook (RTC) was growing. I was luckily made it on time to advance the business into marination. Did we manage to change our food preparation habit? Will you buy a turmeric marinated meat to save your cooking preparation time?
In reality, everything is “pre-assumed” with a price. For example, turmeric powder is RM15 per kilo in the market. If you try to sell higher than this amount, people will think that you are trying to gain more profit. Some consumers will consider to buy it due to the quality concern. In general cooking, turmeric is for colouring, as long as you make it yellow. Therefore, some yellow turmeric powder is RM5 or lower. Do you believe it?
Yes, this range of product exists and high in demand.