Filetype Excel XLSX | Posted on 14 Aug 2022 | 3 years ago
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177x Filetype XLSX File size 0.04 MB Source: www.extension.iastate.edu
Sheet 1: Example
| Comparison of customer, competition or cost based pricing | |||||||||
| Ag Decision Maker -- Iowa State University Extension and Outreach | |||||||||
| For more information on transaction costs and pricing products, see Pricing for Profit, | |||||||||
| or the website for Farm, Food and Enterprise Development (FFED). | |||||||||
| Enter your input values in shaded cells. | |||||||||
| Competition based pricing | |||||||||
| Product | Amount | Unit | Non-organic Grocery Price | Share-value Non-organic Grocery | Organic Grocery Price | Organic Grocery | Share-value Organic | Notes | |
| Carrots | 5 | pounds | $0.85 | $4.25 | $0.99 | 116% | $4.95 | The share value grocery is equal to the amount included in the share boxes multiplied by the grocery price. | |
| Beans, specialty | 5 | pounds | $4.99 | $24.95 | $5.99 | 120% | $29.95 | The non-organic grocery and organic prices are the average price of the product over the delivery period for the product, excluding sales prices, special promotions, and weekly variations. | |
| Lettuce, head | 15 | head | $1.75 | $26.25 | $2.99 | 171% | $44.85 | The example share box contents would cost the consumer approximately $195 for the season at non-organic prices and $280 at organic prices. | |
| Peas, sugar | 5 | pounds | $6.99 | $34.95 | $7.99 | 114% | $39.95 | ||
| Potatoes | 30 | pounds | $0.99 | $29.70 | $1.69 | 171% | $50.70 | ||
| Sweet potatoes | 10 | pounds | $1.49 | $14.90 | $1.99 | 134% | $19.90 | Whole farm or enterprise budgets resources for determining total costs | |
| Tomatoes | 30 | pounds | $1.99 | $59.70 | $2.99 | 150% | $89.70 | Iowa Fruit and Vegetable Production Budgets | |
| $0.00 | #DIV/0! | $0.00 | Organic Crop Production Enterprise Budgets | ||||||
| $0.00 | #DIV/0! | $0.00 | Using Whole-Farm and Enterprise Records to Make Decisions | ||||||
| $0.00 | #DIV/0! | $0.00 | Livestock Enterprise Budgets for Iowa | ||||||
| $0.00 | #DIV/0! | $0.00 | Estimated Costs of Crop Production | ||||||
| $0.00 | #DIV/0! | $0.00 | |||||||
| $0.00 | #DIV/0! | $0.00 | |||||||
| $0.00 | #DIV/0! | $0.00 | |||||||
| $0.00 | #DIV/0! | $0.00 | |||||||
| $0.00 | #DIV/0! | $0.00 | |||||||
| Total | $194.70 | $280.00 | |||||||
| Cost-based pricing | |||||||||
| Total direct operating expenses, annually | $25,000.00 | Seeds, fertilizers, pesticides, paid labor, supplies, utilities, fuel, repairs, trucking, interest, miscellaneous. | |||||||
| Total indirect operating expenses, annually | $4,000.00 | Office, legal, accounting, insurance, property taxes | |||||||
| Annual non-cash expenses (depreciation) | $3,000.00 | ||||||||
| Total expenses | $32,000.00 | ||||||||
| Total units sold (shares, head, gallons, etc.) | 100 | ||||||||
| Total expenses per unit | $320.00 | ||||||||
| Pricing for Profit Comparison | Desired profit margin | 25% | |||||||
| Actual value | Return to Management | Value adjusted for profit margin | Return to Management | ||||||
| Non-organic grocery value | $194.70 | -$125.30 | $243.38 | -$76.63 | |||||
| Organic grocery value | $280.00 | -$40.00 | $350.00 | $30.00 | |||||
| Cost based value | $320.00 | $0.00 | $400.00 | $80.00 | |||||
| Contact the author for questions, comments or suggestions regarding this spreadsheet. | |||||||||
| Author: Craig Chase | |||||||||
| Food, Farm and Enterprise Development, https://www.extension.iastate.edu/ffed/ | |||||||||
| Version 1.1_42021 | |||||||||
| Date Printed: 08/14/2022 | |||||||||
| This institution is an equal opportunity provider. For the full non-discrimination statement or accommodation inquiries, go to www.extension.iastate.edu/diversity/ext. |
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