Why does dog food prices keep rising, while the shipping should be going down? Have they not raised it several times over the last few years because of shipping cost.
Most feed companies, and pet food especially, contract their milling out to private feed mills that do nothing but private label dog food for people. These private label millers book everything that goes towar milling a sack of dog food. Booking means they buy ingrediance and shipping for the future. The contract can be for any length of time, that's between the miller and ingredient broker. If the miller agrees to pay a certain price for bone meal in February thru July. That's how he has to price his feed. If ingrediance and fuels stay at this leve you should see some dog feeds start dropping in price around July or a little before. I doubt if they all drop at the same time, it all hinges on the dare the miller negotiates a new ingredient contract. If you will study the ingredient label on the bab you will see basically the same ingredient on all dog food. If you want to and have enough money , you can go to a private labeling miller and they will make you a dog food to your specification, they will even formulate and balance the nutrician for you. All you do is agree to take so many truck loads a week, month so forth. That's where you agree to pay a certain price or booking for a certain period od time. It's called big investment and risky.. If a few of you boys that feed a lot of dogs get together and investigate the dog food business and go to a private label milling company, I believe you will see the out price on dog food is actually not that bad. The out price is the price you pay at the store, the in price is what the store pays for the food, and that is a small gap. Don't take my word as gospel just go into selling dog food retail and report back what you find in about 24 months.
Bought feed from a particular feed company a few years back on a buy one get one setup. I had to mail the company the check for retail price of $28/sack. Meanwhile found out the very feed I bought was coming from a feed store two hours from my house and that individual retailed it for $23/sack. So not only did I pay more for the feed, I had to pay the individual who handled
The feed a "shipping fee" of $2/sack on both tons becaus the company cut him out of making any money on the feed. The feed company would still made their money, he made some and I'd have gotten the feed cheaper per sack, but didn't realize all this Til I picked up the feed. The dealer told me he charged $5/sack cheaper than what I paid for it. Needless to say our hunt won't be using them again.
Hunt rep, you paid about $15 per bag for 80 bags of feed which is still cheaper than $23 per bag. The producer probably doesn't lose money on that deal and the dealer gets to make a little bit as well. Its still a good system if you want to spend $1200 on feed. I don't really care for the straight donation model because you know the cost is getting passed on to the consumer but at the same time those companies are going to spend money on advertizing in some form or another.
Bill, when you are retailing any product even dog food the retailer sets his price according to the price he has to give to restock the idem. Not the price he paid for it. I've seen dog food go up .50 cents a bag the next day after the retailer just received a truck containing 22 tons. That's 880 bags which adds up to 440 dollars a truck.if you don't set you price on the restock price you will be setting there scratching your rear wondering where the money went and why the electricity has been turned off.
Tom, there is no such thing as free food, every feed company has give away food built into their pricing . Usuall it's called advertising expenses but it's budgeted in their overhead. Nobody can give anything away and stay in business
Hunt rep. To buy one bag at retail and receive one free in extremely good deal , most of the time it's buy 10 get 1free. But there again those promos are figured as a part of advertising overhead and is figured in to their production cost. No such thing as a free ride somebody is paying for it . In this case every who buys a bag of that brand food
cattle,horse,chicken,hog etc feed 15 to 20 $ per 100.
corn,wheat,soy beans,oats 5 to 12 $ bushel.
what do they put in dog feed that makes it 45 to 60 dollars per hundred and some cases more.anybody got a good answer for that other than doing it to us like the oil companys did but never let up
Being a corn/wheat/soybean grower we sell to two big feed mills for dog feed maybe the ones you do business with are different(pulpwood) but we sell directly to the mill owners and they are buying grain off the Chicago board just like everyone else that buying grains and using it immediately so I think it would be a little ridiculous for them to say that they are setting there prices for the full year. They are making brand name feeds just hard for me to believe that they are buying all their inputs on a yearly basis
Cody ,it's the rich corn and bean farmers like you who cause all this inflation. It's been rip n us off for ten years now with high prices of grains..So you should have boat loads of corn money.Right?