The Market Pricing of commodities and other food items changes on a periodic basis according to supply and demand. In the agricultural arena, for example, market price fluctuation is caused by the current season, various weather conditions, diseases, inelastic demands, inelastic supply, and the extended global market.
Factors such as the current season, weather, and diseases are simple to understand. We know that frost, rain, sun, pests, blight and so on will affect crop yields.
Inelastic demand is a bit more complicated. For many crops, a standard decrease in price will not create an increase in demand. Simply put, people do not start drinking more coffee or tea because it is cheaper. Prices need to significantly change if there is to be a noticeable effect on demand.
In the same vein, inelastic supply means that standard changes to supply do not occur overnight. When a farmer plants more crops, the increase in yield is not instantaneous. It will take several years before there is a significant change to supply.
The extended global market brings new agricultural possibilities every year. All of the factors described above impact each country or region in a different way, meaning that today’s number one producer of a given product may no longer be so tomorrow. When you add the fluctuating currency market on top of everything, it becomes clear that there are many considerations that impact a given product’s price at a particular moment in time.
bcFood allows you to track these fluctuating market prices, record the changes, and let them affect your pricing calculations.
bcFood’s Market Pricing Feature
bcFood allows you to track the fluctuating market prices of products. As the price of raw materials and commodities goes up and down, you can record these changes in your system and make certain that your pricing data and calculations remain accurate.
Tiered pricing – define pricing for different minimum quantity levels, making it possible to account for price breaks when certain quantities of product are ordered.
Integration to purchasing – integrate market pricing to purchasing, ensuring that the prices on your purchase invoices have the correct dollar values.
Report ready – market pricing data is readily accessible for reporting needs, allowing you to factor market considerations into analysis and decision-making activities.
Record market prices for resale items, then use this data to set the necessary margins when you sell these items to your customers.