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DTN storie
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SeniorCitizen
Posted 2/5/2008 11:26 (#301663 - in reply to #301647)
Subject: Re: DTN storie


Pricing can be a complex issue for some of these giants. I have no idea about today's environment. Years ago, in working with candy companies & soft drink manufacturers, users of HFCS & laid off in corn futures...it required a 50 cent change in the corn price to equate to any change in their wholesale price. On the other side, in working with a food chain on the west coast, they measured shelf space by the square inch & food vendors compete for the space...these chains were then very, very tough. Therefore, an up in price can be a big deal for the manufacturer. In some instances a manufacturer would ride out some price increases in costs hoping the market would level out. When these big chains run a special it is a big deal & if you are not in their range of prices....a lot of business is involved.
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