How Much to pay for brownie ends as wastage

momon121

Free Member
Mar 30, 2010
579
38
Hi

Thank you for reading my post.

I have been approached by an employee of a local baker that they require their brownie ends to be taken away.

On an average week they have anything up-to four ton of brownie ends as waste.

I have spoken to the operations manager who does not have much idea in how do dispose or reuse the product.

In our conversation I mentioned that I work closely with two very busy packers who de-identify famous brand biscuits and cakes and and can easily handle the volume of waste that is needed to be taken away.

One of the packers I am quiet friendly with and I suggested the opportunity and he did a quick run down on the costing based on what he normally pays per ton to Burtons and Mcvities.

The operations manager did say that they are expecting something in the region of £600 per ton. This figure is randomly made up because approximately two years ago the same individual offered menthe brownies to be taken away for free.

My friend packer also disclosed that they pay on average £500 per ton Burtons. As I have never done this i would like to secure this deal for myself and supply the packers with the brownies.

Naturally the packers are not disclosing what they pay Burtons but I’m suspecting they pay less than £500 because when they collect the ‘waste or seconds’ they also are in the habit off throwing away a percentage of waste that’s not fit for packing or reselling.

I am in the process of writing an email to the operations manager and I want to put a lower bid so I can make something whilst the packers have margin to make it when they wholesale it on.

What do you think I should propose to pay per ton?

thank you so much
 

MarkOnline

Free Member
Apr 25, 2020
469
160
It depends on a few factors the main one being how much of a nuisance is storing and disposing of the waste for the manufacturer. Then there is the quality aspect of the product, how good does it taste is it burnt, can a consumer chew it etc etc. Where does the product sit in the market, is it high end natural ingrediant, demerra sugar or cheap beet sugar for example,
Does the manufacturer have a more valuable waste product available to buy if you were to buy ths to get in?
How much your packer pays for Burtons product is a very loose guide only but remember the repacking is usually the major cost of rebranding and where the profit lies. The "ends" have already been costed into the premium product so stand the manufacturer at zero. What is the life of the product before its quality and taste (and appearance) drastically deteriorate?
As a general guide I would find out what the seller wants and then match your service to what they want and as long as that makes commercial sense go from there They will want a regular buyer who collects on time, pays on time and doesnt moan when the product is a little more burnt or crumby than usual, so price a percentage as pig food. You are in the problem solving business.

Work backwards from retail price and look for 10 times your money if you can ( more is better less is riskier)
Hope that gives you more to think about, good luck.
 
Last edited:
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momon121

Free Member
Mar 30, 2010
579
38
It depends on a few factors the main one being how much of a nuisance is storing and disposing of the waste for the manufacturer. Then there is the quality aspect of the product, how good does it taste is it burnt, can a consumer chew it etc etc. Where does the product sit in the market, is it high end natural ingrediant, demerra sugar or cheap beet sugar for example,
Does the manufacturer have a more valuable waste product available to buy if you were to buy ths to get in?
How much your packer pays for Burtons product is a very loose guide only but remember the repacking is usually the major cost of rebranding and where the profit lies. The "ends" have already been costed into the premium product so stand the manufacturer at zero. What is the life of the product before its quality and taste (and appearance) drastically deteriorate?
As a general guide I would find out what the seller wants and then match your service to what they want and as long as that makes commercial sense go from there They will want a regular buyer who collects on time, pays on time and doesnt moan when the product is a little more burnt or crumby than usual, so price a percentage as pig food. You are in the problem solving business.

Work backwards from retail price and look for 10 times your money if you can ( more is better less is riskier)
Hope that gives you more to think about, good luck.

From retails price the wholesaler would be looking to resell that same product for 75p to traders like me to make it £1 line. Below is a very rough guide how much it cost packer


Example:

500g tub @ 50p/kg


Cost of brownie: 0.25

Tub: 0.15

Labour 0.15

Case 0.04

Label 0.03

Transport 0.03


Total 0.65p

b02c58c2-8aa2-4eb0-9a68-3eaba78fa542
 
Upvote 0

MarkOnline

Free Member
Apr 25, 2020
469
160
From retails price the wholesaler would be looking to resell that same product for 75p to traders like me to make it £1 line. Below is a very rough guide how much it cost packer


Example:

500g tub @ 50p/kg


Cost of brownie: 0.25

Tub: 0.15

Labour 0.15

Case 0.04

Label 0.03

Transport 0.03


Total 0.65p

b02c58c2-8aa2-4eb0-9a68-3eaba78fa542

Talk to the seller (the decision maker not the bloke who works on the production line) and find out more information, I presume they arent sticking it all in a dump truck and sending it to the tip. Just looking at your numbers I would bag them the plastic tubs are too pricey. The raw material isnt really your cost, the packing machinery and packing efficiency is where the profit lies, its also where the real investment is. (I know, thats not the question you asked) but it may help you understand the value of what you are trying to buy. I dont believe your "friend" is being as honest as you think regarding the market price of brownie ends. However thats only my opinion.
 
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momon121

Free Member
Mar 30, 2010
579
38
Talk to the seller (the decision maker not the bloke who works on the production line) and find out more information, I presume they arent sticking it all in a dump truck and sending it to the tip. Just looking at your numbers I would bag them the plastic tubs are too pricey. The raw material isnt really your cost, the packing machinery and packing efficiency is where the profit lies, its also where the real investment is. (I know, thats not the question you asked) but it may help you understand the value of what you are trying to buy. I dont believe your "friend" is being as honest as you think regarding the market price of brownie ends. However thats only my opinion.
Hi

I’ve been back and forth with the operations manager and I’ve bid on £200 for tonne factoring in some waste etc.

It has been declined as they want £600 per tonne. With brownies when it comes out of the freeze it can easily mould. The operational manger has someone already that takes their waste and as you kindly highlights they’ve already costed that amount in to their premium product. I’m waiting upon a reply.

I’ll keep you updated.
 
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