Splendid sees missed promotional opportunities for mangos on pricing
Splendid sees missed promotional opportunities for mangos on pricing
Larry Nienkerk, manager for Splendid Products in Burlingame, CA, has been around the block a few times and he knows how retail works with regard to markup. Still, he believes there are times when a promotional price will work in everyone’s favor, and ultimately can give the grower-shipper a break when supplies are plentiful.
As far as mangos are concerned, this summer is one of those times. “Basically we have had a bumper crop out of all districts in Mexico this year,” he said. “We could use some promotional help.”
Larry Nienkerk, manager for Splendid Products in Burlingame, CA, believes mangos should be priced by the pound.Nienkerk said the late districts of Los Mochis in northern Sinaloa probably will not have a bumper crop but will have normal volume. That area was hit with some weather issues earlier this year that will probably reduce the crop from the bumper status that the other districts have had this year. But still there will be promotable volume.
“We should work like to see the retail price be more reflective of the f.o.b. price,” he said. “At times when the supply is heavy it would be nice if the retail price could come off a couple of points” from normal markup, he said.
Nienkerk has long been a proponent of pricing mangos by the pound rather than per mango. Most fruit is priced per pound though mangos and a few others — most notably avocados — tend to be priced by the piece. “Nary a fruit out there that is as reasonably priced as mangos. Mangos are a tremendous value compared to other fruits but because they aren’t priced per pound, it is difficult for the consumer to compare. You’d see it more clearly if there was a per pound price.”
Nonetheless, he said mango sales at retail do respond very favorably to a promotional price. In years gone by, you would occasionally see a blowout price of 10 mangos for a dollar or some other great multiple deal. Those deals have been few and far between this summer, though the f.o.b. price has been very low comparatively speaking.
“I expect that the price will remain at a very promotable level through the end of the Mexican deal,” Nienkerk reiterated.
He added that Splendid has increased its volume this year, which he noted is a popular refrain as the bumper crop has meant more volume for everyone.
