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Throwback Tip #230: Refresh Your FSMA Knowledge

Posted By RCI, Tuesday, April 9, 2019
Updated: Monday, April 27, 2020

It has been eight years since the Food Safety Modernization Act (FSMA) was signed into law, which also means if you manufacture food and operate with less than $1 million in sales, September 2018 was the deadline to comply with the FDA's regulations. This week's tip offers a refresher on FSMA in an excerpt from an article written by Michael Koch of Morley Candy Makers/Sanders Candy for RCI's Kettle Talk magazine, plus tips for next steps.

WHAT IS FSMA?
FSMA was designed to shift the focus on food safety from responding to contamination issues to a more proactive approach of preventing contamination before it happens. Through the passing of this law the FDA has gained more leverage in its ability monitor and control the safety of our food supply chain.

In September of 2015 the FDA published its "Preventive Controls for Human Food" guidelines. As part of FSMA, it outlines the mandatory requirements being placed on all food manufacturers to have and implement a written food safety plan. FSMA requires that your plan be written and managed by a qualified individual. Individuals must complete a certification course to become a qualified food safety administrator.
 

 

PREVENTATIVE CONTROLS

Hazard Analysis and Risk-Based Preventive Controls (HARPC) is a documented food safety program that addresses hazard risks with preventive controls for every food product you handle in your facility to ensure it will not become contaminated and unfit for human consumption.

VERIFY EFFECTIVENESS

 
Continuing to verify the effectiveness of your plan ensures preventive controls are consistently implemented and sufficient. Verification includes evaluating the accuracy of process monitoring, calibrating instruments, such as thermometers, and reviewing records to verify monitoring and corrective actions are completed. Product testing and environmental monitoring by a certified third party are also reliable verification methods.

RECALL PROCEDURES
Your plan must contain details on your recall procedures. If a contaminated product is shipped, you must be able to identify where the product has gone and have the ability to perform a recall. A recall plan should include the procedures for identifying the contaminated product. Having important contact information in the plan will help move the process forward. Contacts should include the local health department, local FDA office, news media and anyone else that you may deem important to the process.
 
FSMA covers a much greater spectrum of the food chain and more details than covered in this brief post. The realm of information and procedures that you are responsible for also cover such things as your supply chain management, good manufacturing practices, corrective actions and etc. The FSMA is no small task and it is designed to protect the consumer from obtaining contaminated products.

WHAT NOW?
Co-chair of the FSMA Operations Team Steering Committee and director of FDA’s Food and Feed Program in the Office of Regulatory Affairs, Joann Givens shares next steps for food facilities now that compliance dates have passed for most small businesses.

“The best thing that people in the food industry can do is take the measures required by the new rules – not just the letter of the law but what it represents in terms of transforming the food safety system. They should look at the big picture, at areas in which they could be vulnerable and proactively take action. Promptly responding to problems, even if they aren’t yet violations, can prevent them from getting to the point at which there is a concern about the safety of the food.”

Joann also stresses the importance of a thorough system for documenting what you do. “The better the records, the more a company can demonstrate that it is meeting the legal standard.” With the right processes and procedures in place you’re better equipped to prevent problems before they arise. Joann recommends creating some redundancy in your system, “if one measure fails, another can take its place.”
 
In order to operate a successful candy making business, it is essential that you are knowledgeable on federal regulations and take the proper action to ensure you are in compliance with FSMA guidelines. Click here for more resources and updates.


Crave more? If you like what you read here, look for the "Subscribe now" box on the right to enter your email address and start receiving weekly tips, like this, delivered straight to your email inbox. Plus, review past blog posts for quick and actionable tips to apply to your business. RCI's Tip of the Week blog is just one of the many resources we offer to help candy makers refine their craft and build upon their business and marketing practices.

Tags:  Food Safety  FSMA  Owning a Business 

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Tip #298: Plugging into Podcasts: 10 Business-Related that will Inspire You!

Posted By RCI, Tuesday, March 26, 2019
Updated: Monday, April 27, 2020

When is the last time you invested in education for you or your team? It’s so easy to get lost in the details, as you scramble to complete daily tasks before the sun sets. Even if you crave the opportunity to learn, it can be difficult to invest your time when it always seems so limited. I have recently discovered podcasts as an easy and quick way to gain valuable insights in both my professional and personal life. 

Even though I love to read before turning in for the night, it can be a challenge for me to find the time and energy to make this a regular practice. However, by taking advantage of my commute time to and from work, I suddenly have 60 minutes of time each day which I now devote to listening to podcasts that stimulate my brain, spark my creativity and inspire me to set and achieve new goals.

“Packed with expert interviews, fascinating conversations and creative content you can absorb while commuting, waiting for a flight, or running on a treadmill, entrepreneur podcasts are fast becoming a go-to for top leaders,” as stated in an article on Inc.com.

Below is a list of 10 business-related podcasts that we think you'll love as much as we do!

  1. The Brendon Show, by Brendon Burchard
    As one of the world’s leading high-performance coaches, Brendon Burchard shares tactical training on how to achieve your highest potential. 
  2. EntreLeadershipby Ken Coleman
    EntreLeadership offers weekly interviews with today’s top thought leaders designed to help you grow, develop your team and provide inspiration to boost your bottom line. 
  3. The Tim Ferriss Showby Tim Ferriss 
    Tim Ferriss examines habits of high-performing people to extract the tactics, tools and routines that listeners can apply to their lives or businesses.
  4. The Marie Forleo Podcast, by Marie Forleo
    From business, marketing and career advice, to tackling failure, disappointment, fear and philanthropy Marie Forleo shares advice to help you build a life and business you love.
  5. RISE Podcastby Rachel Hollis
    Gain tangible and tactical tools for your life and business through a series of bold conversations with business powerhouses and personal development leaders.
  6. Building a StoryBrandby Donald Miller
    Get people talking about your brand, grow your company and stand out in the marketplace with Donald Miller's practical advice about clarifying your message.
  7. Online Marketing Made Easy, by Amy Porterfield
    Expert interviews, mini execution plans and intimate behind-the-scenes secrets all tied together to make everything you listen to as actionable and profitable as possible.
  8. Stanford Entrepreneurial Thought Leader Series, hosted by Stanford University
    If you're partial to academic thinking and want to learn from highly successful entrepreneurs, this podcast is packed with serious value and knowledge in one-hour chunks.
  9. The GaryVee Audio Experience, by Gary Vaynerchuk
    Media mogul and entrepreneur advocate, Gary Vaynerchuk, shares a combination of keynote speeches, interviews about business and marketing plus motivational advice.
  10. Business Boutique, by Christy Wright
    For women interested in starting and growing their own businesses, this podcast features deep dives on topics like marketing, selling, social media, pricing and more.
Start listening now! Access podcasts for FREE using your computer, Apple or Android device. Most podcasts have a website where all their episodes are available to listen to anytime. Otherwise, look for the pre-installed Podcast app on all iPhones or download a podcast app, such as Spotify or Stitcher, if you have an Android device.

Crave more? If you like what you read here, look for the "Subscribe now" box on the right to enter your email address and start receiving weekly tips, like this, delivered straight to your email inbox. RCI's Tip of the Week blog is just one of the many resources we offer to help candy makers refine their craft and build upon their business and marketing practices.

Tags:  Inspiration  Owning a Business  Podcasts  Resources 

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Tip #297: 5 Smart Purchasing Habits to Pick Up Today

Posted By RCI, Tuesday, March 19, 2019
Updated: Monday, April 27, 2020

For entrepreneurs, the challenges of purchasing for a business are an everyday concern. In this week’s post, RCI 1st Vice President, Barry Bomboy of Bomboy’s Home Made Candy, shares five purchasing habits that help his family’s business maintain or increase the quality of their products while staying conscious of the bottom line.
 
COOPERATIVE PURCHASING
As a member of RCI, we have been able to network with other great companies and build relationships, which allows us to have greater purchasing options. In some cases, we are able to combine our orders with other companies' orders to purchase ingredients and supplies. This allows us to collectively meet larger minimums and receive better pricing.
 
Cooperative purchasing can add great value to your business, however, you may have to adjust your buying patterns to get this type of cooperative buying to work. It is important to figure out who has the best options for receiving larger shipments and make sure you have the storage available for a larger purchase. You may be at the mercy of someone else’s buying schedule, but when you join forces you will find that your buying power can save a significant amount of money, which goes right to your bottom line.
 
STAGGERED DELIVERIES
We try to schedule our deliveries so that they are staggered at a pace that will allow us to keep our everyday flow moving. We want to make sure we have raw materials for manufacturing and also packaging materials for finished goods. We also have to ensure that we have enough space to continue working and to store inventory. We are able to schedule seasonal employees based upon the delivery dates we have chosen to keep production at a maximum.
 
KEEPING RECORDS
We keep records of all of our purchases and sales leading up to and during each holiday season so we can plan for the following year. At the end of a season, we ask ourselves if the timing worked and if we had enough or too much inventory. We track not only what we sold, but also how much and when it sold. We feel that we can never have enough notes to make the following year better.
 
ASK THE RIGHT QUESTIONS
Another challenge is making larger purchases of equipment for manufacturing and packaging. To prevent unnecessary spending, we, first, have to answer the following questions:
 
  • Do we need it?
  • Will it improve efficiency?
  • Is there room for it?
  • Do we need to change electric hookups or plumbing?

By taking steps to address these questions, we are able to avoid making decisions that could be counterproductive, if for instance, the equipment is of no use because we don't have room for it or we don't have the proper electrical hookups.
 
TRACKING WEATHER
Lastly, there is one other major item that we track from year to year, because we are located in the Mid-Atlantic region of the country: weather. We know that our sales could have been affected by that major snowstorm that hit three days before Valentine’s Day or a late 85-degree Easter. Our customer’s buying habits often reflect that our business is driven by weather.
 
Look for ways to incorporate one or more of these proactive approaches to help you form smart purchasing habits that will propel the success of your business.
 
Now is the time to start planning for the holidays! Explore what’s new in the confectionery industry and connect with fellow candy makers, chocolatiers and suppliers at RCI’s Annual Convention & Industry Expo on June 3-7,2019 at the Connecticut Convention Center in Hartford, CT. Register by March 29 to get the best rates!

Crave more? If you like what you read here, look for the "Subscribe now" box on the right to enter your email address and start receiving weekly tips, like this, delivered straight to your email inbox. RCI's Tip of the Week blog is just one of the many resources we offer to help candy makers refine their craft and build upon their business and marketing practices.

Tags:  Annual Convention  Orders  Owning a Business  Purchasing  Suppliers 

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Tip #285: The Best Business Investment You’re Not Making (and How to Change that in 2019!)

Posted By RCI, Tuesday, December 4, 2018
Updated: Monday, April 27, 2020
 
 
When is the last time you invested in your education? As an owner of a business it is easy to ignore learning opportunities and get lost in the details as you scramble to complete daily tasks before the sun sets. It is easy to make the budget decision not to invest in education, because something else is more important or pressing. Despite these beliefs, many would argue education is the best investment you can make in yourself, your team and your business.
 
Education comes in all different formats; print, online resources and webinars, seminars and workshops, certifications and courses and even in-person meetings such as trade shows or local networking events. You can purchase a new book on candy making (here’s a few of our favorites) or subscribe to industry-related publications like Candy Industry and Manufacturing Confectioner. You don’t have to read everything, but pick content that you find useful and relevant to your business.
 
In case you’re not already familiar, education is deeply rooted in Retail Confectioners International’s (RCI) mission, which is to advance the confectionery industry by offering members the knowledge to build sweet businesses from entrepreneurial passion. For over 100 years, RCI has developed a reputation as a valuable resource for small business owners both established and new to the industry. Through our member-exclusive publication, Kettle Talk, web resources, regional conferences, annual convention and expo, as well as education courses, we give confectioners the opportunity to take time out and focus on their knowledge of the industry and learn from others. With that said, we’re thrilled to share our month-by-month lineup of 2019 events, each designed to help you expand your knowledge to build an even sweeter business.
 

JANUARY: WINTER GETAWAY
RCI will kick off the new year by hosting a sold-out group of confectioners in Costa Rica for our Winter Getaway in January. Attendees will have the opportunity to unwind from the hectic holiday season while gaining valuable insight of their craft while exploring the origin or chocolate at local cacao plantations on this unforgettable trip. This event is currently sold out.
 
 
FEBRUARY: TRUFFLES+MORE
Following Valentine’s Day, candy makers are invited to attend RCI’s Truffles+More education course at Savage Bros. Co. in Elk Grove Village, Illinois (near Chicago). Join us to learn various formulations and trouble-shooting techniques for truffles, meltaways and nut pastes. In addition to classroom-style learning, gain hands-on experience in the kitchen making variations of these popular confections. Space is very limited, so register now at retailconfectioners.org/truffles. If you’re looking to elevate your candy making skills (or those of your staff), this is the course for you!
 

JUNE: ANNUAL CONVENTION & INDUSTRY EXPO
RCI’s Annual Convention & Industry Expo is our premier event of the year! If you’ve never attended an RCI event or if you haven’t been recently, our annual convention is like a mixtape of RCI’s greatest hits all in one! Connect with fellow candy makers, chocolatiers and suppliers looking to share ideas and grow their businesses at the Connecticut Convention Center in Hartford, Connecticut June 3-7. See, touch and (in many cases) taste the latest and greatest equipment, ingredients, packaging and services (and more!) our trusted network of industry suppliers has to offer at our two-day expo. If it’s education your seeking, you can expect relevant sessions on topics covering production, marketing and business, all designed for the retail confectioner. RCI will conclude the week with behind-the-scenes tours of local candy businesses, which takes education to the next level. Look for more event details to come after the start of the new year. Click here to receive notification when registration opens.
 
 

AUGUST: CHOCOLATE BOOT CAMP & FALL REGIONAL CONFERENCE
The ever-popular Chocolate Boot Camp® course, which typically takes place in February, will now be available during the summer. Make your way to Wockenfuss Candies, in Baltimore, Maryland on August 5-8 for this brief yet, comprehensive, hands-on course taught by industry experts. Sold out for the last eight years, the course will give twenty-five students an opportunity to gain knowledge they can take back to their businesses. This course is great for both veterans and newcomers alike.
 
googoo.com
RCI is headed to Music City for its Fall Regional Conference in Nashville, Tennessee August 19-21. Here you can find a great mix of education and connection opportunities, combined with fun, local flair that can only be found in Nashville! Experience the sweet side of Nashville by touring local candy businesses, like The Goo Goo Shop, home of the iconic Goo Goo Clusters. Visit retailconfectioners.org/events for updates on all RCI’s upcoming event updates.
 
Don’t skip another year without investing in yourself and your business. Take advantage of the many industry-related events; attend a conference, send an employee to one of the upcoming RCI education courses, join RCI in Hartford or Nashville and connect with fellow candy makers. Focus on learning this year and watch your business benefit as a result. We hope to see you in 2019!
 
RCI's Tip of the Week blog is just one of the many resources we offer to help candy makers refine their craft and build upon their business and marketing practices. Review past blog posts for quick and actionable tips to apply to your business. Look for the "Subscribe now" box on the right to enter your email address and start receiving weekly tips, like this, delivered straight to your email inbox.

Tags:  Education  Events  Networking  Owning a Business  Resources 

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Tip #272: Why Dry? Learn Why Dry Cleaning & Sanitation Methods May Be Best

Posted By RCI, Tuesday, July 24, 2018
Updated: Monday, April 27, 2020

Did you know limiting the use of water is one of the primary means of controlling pathogens in low moisture food establishments (foodprotection.org)? If when cleaning, your workstation is always filled with enough soaps and suds to check your reflection, it may be time to consider practicing dry sanitation methods.
 

via Gfycat


 
Keep reading to better understand the difference between wet and dry cleaning methods and why dry cleaning is best, when possible.
 
Wet Cleaning & Sanitation
You are probably already using wet cleaning and sanitation methods which utilizes water and/or detergents to remove residue. When wet cleaning, it is extremely important that even the nooks and crannies of machinery is dry, because it is in these hard-to-reach places where bacteria can be difficult to remove and when water is present bacteria can grow.
 
Dry Cleaning & Sanitation
The benefit to employing dry cleaning and sanitation methods, is that it allows you to remove food residue with little or no water application, significantly reducing the opportunity for bacterial growth. 
Dry cleaning can be as simple as surface cleaning with a vacuum or alcohol-based wipes. More detailed cleaning may be performed with a steam cleaner or dry ice cleaner.
 
Assess Level of Risk
When determining which method of cleaning is best, it is important to assess the risk level of the area in need of cleaning. Different areas of your facility may have a different level of risk, just as different ingredients would. It is important to understand what you are trying to remove when cleaning or sanitizing different work stations. According to Quality Assurance Magazine, it is essential to ensure all products used to clean and sanitize food-contact surfaces are approved by the Environment Protection Agency (EPA) in addition to being verified and validated.
 
Before dragging out the bucket of soapy water to clean and sanitize equipment and work stations, consider if you can incorporate dry cleaning and sanitation methods into your regular cleaning routine.
 
Stay connected with RCI through Facebook for more tips and inspiration dedicated to the retail candy maker. Not a member? Click here to learn how RCI can help you build your sweet business.

Tags:  Cleaning  GMP's  Owning a Business  Sanitation 

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Tip #266: Save with Special Offers from Exhibitors at RCI Industry Expo

Posted By RCI, Tuesday, June 5, 2018
Updated: Monday, April 27, 2020

RCI’s Annual Convention & Industry Expo is right around the corner! If you haven’t done so already, there's still time to join RCI in Cleveland from June 18-22, 2018. Click here to see who’s exhibiting by viewing the expo floor plan which includes exhibiting company descriptions and contact information. Visit retailconfectioners.org/annual for more information and to register to attend.
 
Not only are industry tradeshows a great opportunity to see new product innovations and connect with suppliers and fellow confectioners, you can also save money on items such as packaging, equipment and ingredients. Many exhibitors will provide show specials just for those who take advantage of placing orders while at the show. For example, you could secure a reduced shipping rate or discounts on the same orders you may place a couple months from now, when the need arises. Keep in mind, most suppliers will allow you to place an order and arrange for later shipping dates so you could even place your Christmas order and know it will arrive at a later arranged date.

 
As an added incentive, every order placed during RCI’s Industry Expo is entered into a drawing for great prizes provided by exhibitors.
 
Stay connected with RCI through Facebook for more tips and inspiration dedicated to the retail candy maker. Not a member? Click here to learn how RCI can help you build your sweet business.

Tags:  Annual Convention  Expo  Owning a Business 

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Throwback Tip #230: Refresh Your FSMA Knowledge

Posted By RCI, Tuesday, April 24, 2018
Updated: Monday, April 27, 2020

It has been seven years since the Food Safety Modernization Act (FSMA) was signed into law, which also means if you manufacture food and operate with less than $1 million in sales, September 17, 2018 is the deadline to comply with the FDA's regulations. This week's tip offers a refresher on FSMA and its requirements in an excerpt from an article written by Michael Koch of Morley Candy Makers/Sanders Candy for RCI's Kettle Talk magazine.
Click herefor further clarification on compliance dates.
WHAT IS FSMA?
FSMA was designed to shift the focus on food safety from responding to contamination issues to a more proactive approach of preventing contamination before it happens. Through the passing of this law the FDA has gained more leverage in its ability monitor and control the safety of our food supply chain.

In September of 2015 the FDA published its "Preventive Controls for Human Food" guidelines. As part of FSMA, it outlines the mandatory requirements being placed on all food manufacturers to have and implement a written food safety plan.

Before putting a plan together, first, identify the individual or individuals in your organization that are going to administer your program. FSMA requires that your plan be written and managed by a qualified individual. Currently the only way to verify that an individual is qualified is to have your food safety administrator attend a certification course.

IDENTIFY HAZARDS

Hazard Analysis and Risk-Based Preventive Controls (HARPC) is a documented food safety program that you need to develop and implement for your facility. The first step toward developing a HARPC is to conduct a hazard analysis for every food product you handle in your facility—this is not limited to the items that you manufacture. The second step is to put in place preventive controls for each food product to ensure it will not become contaminated and unfit for human consumption.

VERIFY PLAN’S EFFECTIVENESS

 
Verifying the effectiveness of your plan ensures preventive controls are consistently implemented and sufficient. Verification includes evaluating the accuracy of process monitoring, calibrating instruments, such as thermometers, and reviewing records to verify monitoring and corrective actions are completed. Product testing and environmental monitoring by a certified third party are also reliable verification methods.

CREATE RECALL PROCEDURES
Your plan must contain details on your recall procedures. If a contaminated product is shipped, you must be able to identify where the product has gone and have the ability to perform a recall. A recall plan should include the procedures for identifying the contaminated product. Having important contact information in the plan will help move the process forward. Contacts should include the local health department, local FDA office, news media and anyone else that you may deem important to the process.
 
FSMA covers a much greater spectrum of the food chain and more details than covered in this brief post. The realm of information and procedures that you are responsible for also cover such things as your supply chain management, good manufacturing practices, corrective actions and etc. The FSMA is no small task and it is designed to protect the consumer from obtaining contaminated products.
 
In order to operate a successful candy making business, it is essential that you are knowledgeable on federal regulations and take the proper action to ensure you are in compliance with FSMA guidelines. Click here for more resources and updates.          
 
Stay connected with RCI through Facebook for more tips and inspiration dedicated to the retail candy maker. Not a member? Click here to learn how RCI can help you build your sweet business.

Tags:  Chocolate Production  FDA  Food Safety  FSMA  GMP's  Manufacturing  Owning a Business 

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Tip #258: Give Yourself A Break

Posted By RCI, Tuesday, March 6, 2018
Updated: Monday, April 27, 2020
  • About 31% of entrepreneurs work at least 10 hours a day and 15% work every day of the week, according to a survey by Discover Small Business Watch (Entrepreneur.com). 
  • It’s been found that entrepreneurs work 63% more hours than the average worker (Inc.com).
If you are an entrepreneur, these statistics probably don’t surprise you. What may surprise you is that taking breaks is actually good for you and your business. Whether that means taking short breaks throughout the work day or taking more trips to the beach, numerous scientific studies back the benefits of giving your brain a break. With Christmas and Valentine's Day behind us and Easter on the horizon, many candy professionals may feel obligated to push through the long hours needed to get the job done. Keep in mind, however, if you don’t give your body enough rest, your performance will eventually suffer, making all that extra time and energy counterproductive.
 
In an article published by Inc.com, Minda Zetlin offers the following tips on how to incorporate breaks into your regular routine (click here to read full article).

Take short breaks often
The Pomodoro Technique suggests working 25 consecutive minutes alternating with short five-minute breaks in between. The use of this technique has resulted in both increased performance and productivity.

Take more frequent vacations

The average American has 10 days of allotted vacation time each year, however, studies show that many Americans end each year with unused vacation days.
 

Take one day off every week

If you’re pulling more hours than most, this may seem counterintuitive and even frightening. After practicing this approach, participants of an experiment who were accustomed to working every day reported not only a better work-life balance, but also felt more productive and more pleased with their accomplishments.
 
As we approach the time of the year, widely recognized as “spring break” in the United States and Canada, now is a good time to start thinking about how you can give yourself a much needed break. Comment below what you do to create a better work-life balance.
 
Stay connected with RCI through Facebook for more tips and inspiration dedicated to the retail candy maker. Not a member? Click here to learn how RCI can help you build your sweet business.

Tags:  Owning a Business  Productivity 

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Throwback Tip #28: Taste Test Your Products for Flavor Consistency

Posted By RCI, Tuesday, January 16, 2018
Updated: Monday, April 27, 2020

Are you tempted to eat your chocolates as you walk by the packaging line? We have two great reasons to embrace the role of a frequent taste tester of your products without the guilt: quality and consistency. As the owner or manager of a candy store, you want to have complete confidence the products you are selling are not only delicious, but the same level of quality and flavor each time.
 
When a customer purchases a box of toffee, they expect to purchase the exact same product every time. Therefore, it’s extremely important to regularly taste your candies to ensure they meet your standards for quality and flavor.
 
Routine Taste Testing
If you have a quality control manager, consider adding a consistent taste testing program to their routine. The frequency for taste testing may vary depending on how often you produce a particular product, but at least weekly would be the minimum recommendation.

You’ve taken the time to achieve a great flavor, so take the time to ensure it’s consistently the same great flavor your customers expect.
 
RCI's Tip of the Week blog is just one of the many resources we offer to help candy makers refine their craft and build upon their business and marketing practices. Review past blog posts for quick and actionable tips to apply to your business. Look for the "Subscribe now" box on the right to enter your email address and start receiving weekly tips, like this, delivered straight to your email inbox.

Not a member? Click here to learn how RCI can help you build your sweet business.

Tags:  Chocolate Production  Owning a Business  Quality Control  Taste Testing 

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Tip #251: The Price Is Right: How to Price Your Products

Posted By RCI, Tuesday, January 2, 2018
Updated: Monday, April 27, 2020

Happy New Year!
 
If you aren’t already evaluating your pricing strategy on a regular basis, the arrival of the new year is as good a time as any to get started. The first step when evaluating your product prices is to ensure you are factoring in the full cost of your product, including overhead. Below we've updated material originally published in RCI's Kettle Talk magazine (Members: Login to view article) to help you evaluate the price of your merchandise.

 

Know Your Profit Margin
Example: A candy company produces boxes of candy that sell for $25 each. The entire cost to produce the box of candy is $8. That makes the company’s net income $17 ($25 - $8) and its revenue $25. The profit margin would be 68% (17 divided by 25).

Once you've determined pricing that best covers all your costs, devise a plan to regularly reevaluate your pricing to keep up with the marketplace.
 
Note: RCI is in no way suggesting a pricing formula. This is a suggested list of items to consider for your company’s pricing equation.

Stay connected with RCI through 
Facebook for more tips and inspiration dedicated to the retail candy maker. Not a member? Click here to learn how RCI can help you build your sweet business.

Tags:  Owning a Business  Pricing  Profit Margin 

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