A Comprehensive Product Costing Effort On Pecans As A Snack Food Produced By John B. Sanfilippo & Son
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The focus for this project will be to demonstrate a comprehensive product costing effort on pecans as a snack food produced by John B. Sanfilippo & Son, Inc (Sanfilippo). A comprehensive product costing identifying retail pricing, competitive factors, value chain and potential economic data impacts for Sanfilippo and a primary competitor, Diamond Foods, will be considered for consider and to estimate the market for the project (Sanfilippo, n.d.). Economic impacts to be evaluated include the impact of environmental factors, and marketplace factors, both of which may impact product cost and price.
Sanfilippo Evaluation of Product Costing
Pricing product effectively can drive success or failure for a product. But what should be considered…show more content… Although the product itself is purchased from various producers across the United States and Mexico (Edgar, 2015), Sanfilippo’s manufacturing site for its pecan products demonstrates a well-informed decision making choice.
As a seasonally based product capable of being stored for up to 5 years based on storage conditions, Sanfilippo could have realistically chosen any location within the US. After beginning its pecan location in a small store front in Chicago (Sanfilippo, 2012), the company expanded in 1991 to multiple locations strategic to the product produced. The Selma, Texas location used primarily to produce pecans supports storage of the in-shell product in an environmentally stable geographic location (Sanfilippo, 2016). The small suburban community meets many of the most common location decision making criteria with low labor and transportation costs, energy costs, low union labor participation impacting labor and management costs (Kalantari, 2013).
Sanfilippo Product Pricing
When comparing a product to its competitors, it is desirable to use product cost and other comparative factors that may feed into its stability in the marketplace. One of the primary competitors for Sanfilippo’s Fisher Pecan line is Diamond Pecans (Edgar, 2015). For a product with only one ingredient,