Wednesday, January 14, 2015

Veg pricing and the economy

I spoke with one of my customers in NY this morning and despite the high prices most veg are bringing, he is not happy.  Most wholesalers make their margins by pushing volume, and high prices reduce the amount of packages they can sell.  Besides that, the accounts receivable manager usually establishes credit limits which many customers are exceeding with only small purchases.  Finally, at some point markets will fall.  When that happens, customers will be stuck trying to sell high priced inventory in a falling market.  Fun times.   Also, the frigid temperatures gripping most of the country have cut the appetites of the consumer.   My mother said there would be times like this....

No comments:

Post a Comment