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Fixed-Cost Pricing in Co-Packing Contracts with CEO PJ Wiebel
Manage episode 443394018 series 3439708
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In this episode of the Econo-Pak podcast, CEO PJ Wiebel joins host and General Manager Mike Mead to discuss the benefits of using a fixed-cost pricing model in co-packing contracts.
PJ explains how this pricing approach provides stability and predictability for food companies by locking in a set price for packaging services over a 12-month period. This eliminates the unpredictability of variable costs that many manufacturers face, allowing them to better manage their budgets and focus on growth.
Tune in to learn how Econo-Pak ensures efficiency while maintaining profitability within a fixed-cost model.
Watch the interview on YouTube!
Read the interview on our blog!
Timestamps
0:00 - 0:06 – Welcoming CEO PJ Wiebel
0:06 - 0:15 – Discussing fixed-cost model
0:15 - 0:48 – Variable vs. fixed costs
0:48 - 1:16 – Econo-Pak's pricing approach
1:16 - 1:49 – Efficiency and cost benefits
1:49 - 2:21 – Margin stability explained
2:21 - 3:07 – Forecasting and scheduling
3:07 - 3:15 – Client demand for fixed costs
3:15 - 3:44 – Growth in food contract packaging
3:44 - 3:53 – Conclusion
Econo-Pak is your source for contract food packaging and contract food manufacturing services for all dry food products. Our highly-automated facility of 200+ machines and 800+ production workers is set up to help you scale your product into new markets.
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