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Home CC4F News Articles Issue 347 - Food for thought in 2012

Issue 347 - Food for thought in 2012

 Well here comes another year. We look at some key metrics today that can effect your bottom line. The recent end of war in Iraq presents great opportunities to improve your employee balance sheet. Those vets are hungry and disciplined, and employing them helps America. Unemployment will still be high so good employees should be "easier to find".

Cost control is still one the few ways you can control margins as noted in the trends below. Companies per 1000 Americans tells us a lot of fallout has come about the recent recession, make sure you leverage the fact you are here and servicing your clients. That is a major accomplishment considering the alternatives.

Food Market Business Trends to Watch in 2012

  • Unemployment
    Unemployment - It's still an employer's market to hire.  Unemployment continues to hover in the high 8% range and we're about to see the jobs from the holiday season fade.  We're also (hopefully) going to see a significant portion of our troops returning home and they'll be needing jobs.  Be sure you're making the most of the available workforce.  Gaining high value employees at reasonable rates should be a key business goal for 2012. The recent ending of the war brings home many hard working people, males and females ready to accomplish in their non-military careers.

 

  • HIRE ME !!!!
  • Diesel Fuel Costs
    Climbing Costs Offset Climbing Sales
    - While we've seen a break in the gas prices the last few months (dipping below $3.50), but the diesel prices haven't dropped significantly. The recent corn 'sell-off' and drop in other commodity prices will not be enough to significantly reduce costs throughout the chain.  The squeeze will continue throughout 2012 with rising production costs and depressed sales prices resulting in higher sales but flat or reduced profitability.  Cost control and margin management will be key for success in 2012.

  • Small Businesses
    Fewer or Smaller Start-up Companies - It's going to be tougher to get start-up capital in 2012.  So evaluate your market carefully for opportunities to intelligently increase your pricing.  Fewer start-ups should mean fewer companies 'buying' market share with outrageously low prices (but watch out for the big boys pulling from lower in the market than ever this year).  In 2012 look for segments of your product line that are less fiercely contested and get those prices up.

Overall, 2012 looks to be shaping up into another year of slow recovery--which is fantastic given the alternative being slow recession.

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Video Highlights

VictualNet - THE Web-based alternative to installed-software for food distributors and processors to manage order entry and inventory.
VictualNet Features:
  Order Entry and Inventory Management
   For Food Distributors using QuickBooks

 

VictualNet Feature: Broken Case Up-charge for QuickBooks

 

Many food distributors will offer to sell product at less than case quantities as a value adding feature to smaller customers who may not be able to use an entire case of product.  This adds cost as the distributor must open a case, unpack product, repack for shipping and now has "loose" product in inventory.  To offset this cost distributors and processors will often add a broken case up-charge.  VictualNet allows distributors to add this automatically based on the quantity and unit of measure used for ordering.

 

With VictualNet you'll never miss an up-charge and leave money on the table again.

Watch the video to see how easy VictualNet makes it to apply a broken case upcharge