4 Benefits Of Having An Organic Food Certified Product

4 Benefits Of Having An Organic Food Certified Product

4 Benefits Of Having An Organic Food Certified Product

You just got your new product finished, you got your Schedule Process, and now you’re ready to get your product to mainstream markets and supermarkets. But then your wondering should you get your product organic food certified or not. But let me tell you this first, not all products need an organic food certification. You have to use your best judgment. To decide that question first we need to talk about some of the benefits of having an organic food certified product will provide.

1. Increase Brand Awareness

Once you get your product approved, as an organic certified product, you are permitted to use the USDA Organic logol that you can put on your product labels. With increased demands of organic foods by consumers and retailers these days it allows you to capitalize on this organic growth movement. Having your organic food certified gives you the opportunity to get your product exposure to a new set of locations and customers that are not too familiar with your brand. Brand awareness is important for any business to consider because it helps with marketing your business and your products. Having your product certified organic can help garner some attraction to some of your older products that haven’t been getting conversions.

2. Acceptance To More Markets

Now that your product has been certified it has the potential to open more doors than you have previously experienced. There are some markets and stores out there that will only sell organic products. For example, you would normally see a local health food shop featuring their top organic food certified products. So basically if you would like to be accepted into some of the smaller or local organic markets having an organic certified product might be your ticket into those places. 

3. More Revenue

Every business wants to be successful and make money. To do that, you have to get your product to profitability as quickly as possible. How does getting your product organic food certified help you generate profit? Consider this: if you’ve been to Whole Foods Supermarket before, you may have noticed that organic foods are almost always more expensive than conventional non organic food. You can price your products higher when they are organic certified because some people only buy and eat organic food.There are many opportunities to make money in the organic food industry because of product differentiation and perceived higher quality.

 

4. Organic Food Certified Trust

Many people take their health very seriously and so are very deliberate about what they put into their bodies. These customers are far more likely to buy your product if it’s organic. Right now, the organic lifestyle is trending upwards. Consumers trust brands that are marked as certified organic more and more as awareness increases. There are many positive possibilities and much potential for business growth in this industry.

In a world where product reputation is extremely important, you should always strive to produce the best versions of your products. It’s hard to rebuild a good reputation once you’ve lost it. Your customers are putting their trust in your product because of the organic certified seal. You can’t claim your product is organic when it’s not, as you can face serious legal consequences for doing so.

When you’re ready for your organic certification you can contact us at Organic Food Incubator to help you get it started. Contact us HERE! 

Continue Reading: Where To Start? How To Start Producing And Selling Your Product!



Where To Start? How To Start Producing And Selling Your Product!

Where To Start? How To Start Producing And Selling Your Product

Where To Start? How To Start Producing And Selling Your Product!

You have an incredible product that you want to produce and sell. We would love to help–but before we do, here are some steps to streamline the process:

  1. Know your product- Understand the measurements and ingredients needed to make your product. Understand what your options are for wholesale ingredients and what the most cost-effective way to store and purchase them. If possible, come prepared with a scheduled process. If you do not have one already, the OFI provides services to create one for your product.
  1. Equipment Needs- While the Organic Food Incubator has a considerable complement of equipment f, you may need a product specific machine that  we do not currently have. For information about the equipment we have available check here.
  1. Packaging Needs-  Product, packaging needs may differ. When choosing  the packaging it is important to think about maintaining flavor, freshness, product shape, and if production will affect the package (i.e. heat or freezing product).
  1. Timeline- Have a timeline of your production expectations. Is this the first time you are producing this produc?Do you want a trial run? How often do you plan to produce?
  2. Licensing and Insurance- Make sure you have the licensing and insurance you need to produce your product. There are accredited programs that offer training and licensing.

If you do not know this information and you’re still not sure where to start, OFI provides consulting services to help you make your product. For consulting services, reach out here.

Continue Reading: 3 Reasons Why Getting A Scheduled Process Is Important

Margins And Costs| Where Is Your Profit?

Margins And Costs| Where Is Your Profit?

Margins And Costs Where Is Your Profit?

When we are talking about margins and costs relating to the food manufacturing industry, you need to know some basic information. Perhaps the most important information is what portion of the money earned from your product you’ll actually be making!

Unfortunately, you do not get to take home your retail price. Before you see a profit, the grocer’s margin is deducted, the distributor’s margin is deducted and your costs are deducted. The amount that is remaining is your profit.

Grocer’s margins are a percentage of the retail price, which can be up to 40%.

Distributor’s margins are a percentage of the grocer’s cost, sometimes up to 35%

Here’s a Simple Example:

 

Retail Price             $10.00

Grocer Margin        $4.00     40% of Retail Price

Grocer Cost            $6.00

Distributor Margin $2.10      35% of Grocer Cost

Cost to Distributor $3.90      Proceeds to Entrepreneur

Proceeds to Entrepreneur includes cost of manufacture, ingredients, bottles, caps, labels, transportation, marketing, etc. and PROFIT hopefully.

 

Your profit is the difference between ALL of your costs and selling price.

Your costs can include ingredients, packaging, and labor. These are the cost of goods sold. In addition, your costs can also include marketing, insurance, social media promotion, setting up/maintaining your website, product transportation, utilities, and more. Before launching your product, consider all of the factors that will affect your profit and your margins.

Read Next: Who is My Target Market?