Account Call
Met with Craig Minichiello at his office. Talked to Craig about what it would take to get him to run more ads. He agreed that there are always going to be the lowball guys, but felt that he could consistently advertise at $3.99 a pound once we got into the heart of the season. He said that he felt that we hold the price too high early in the season and that slower movement causes the fruit to back up at the source, which causes the price to decline lower than it would be if we started at the right price. That low FOB makes fruit available at a price for retailers to be able to advertise at $1.99 a pound and he doesn’t feel that that moves much more product at retail than a $3.99 price. We talked about the sustainability issue that we were concerned about, and we both agreed that smarter pricing from the sales desks would help. He is going to talk to his provider and see if he can work out a steady price for the season. He said he would like to have an FOB which would allow him a $3.99 price throughout the season, whether on ad or not. He will continue to build entrance displays and is actually planning to use larger tables at the front of many stores rather than using the bakers racks that he had been using in the past. He sees this a better opportunity for dynamic displays. He does feel that even an FOB that would give him a $4.99 retail will still move product, but prices higher than that just will not work, especially in this economy.
Domex is the Market Basket supplier and he is going to talk to them about establishing a seasonal pricing. Perhaps a little higher at the beginning at the end of the season but a steady price during the season.