Tuesday, September 6, 2011

New Customer Cost Offset Programs


This summer, we took a hard look at our chocolate business, and we had to make some hard choices. Our materials, packaging, and other incidental, but necessary, costs increased our costs dramatically, but we think the changes improved our products and presentation significantly.

DECISION TO UPGRADE INGREDIENTS
We made a decision last year to only use certified organic ingredients wherever possible. Since chocolate is our main ingredient, we made a change from our coverture source, to using Guittard Organic, dark & milk, which is certified organic. Previously, we had been using Vintage Plantations, but they are not certified organic. We are thankful to Vintage Plantations, as we were a small customer just getting started, and their chocolate is usually good quality and they worked with us even though we were just getting started.

DECISION TO UPGRADE PACKAGING/SHIPPING
But we felt we should make a change and we did so last year. We were also receiving complaints from one particular long distance about our packaging, and how their chocolates were almost always broken...so earlier this year, we upgraded our packaging to include set-up boxes, pads, and trays. We have not had any complaints about broken or smashed chocolates since.

This summer, we've had to go the extra mile and use insulated shippers. These are very expensive, and we will absorb some of the cost of these, but they will keep your chocolates from arriving melted. We experimented with different combinations of insulated materials, with limited success - depending on how hot it was. We learned a lot from our mistakes.

All these things have increased our production, packaging, and shipping costs. It was a difficult decision, but we decided to raise the prices of our chocolates, especially the more labor-intensive truffles.

For our local, meaning Lancaster County, PA, customers, we have some less expensive packaging alternatives we think you'll like. This will be addressed in the next post regarding new products.

For everyone, we have TWO NEW customer programs - 1) Chocolate of the Month; 2) Preferred Customer.

CHOCOLATE OF THE MONTH
Our Chocolate of the Month program comes in two subscriptions, 4-month & 12-month, Vegan & Regular. All you have to do is sign up as a customer & order Chocolate of the Month, on our website: www.smithorganicchocolates.com and we'll put you in the Chocolate of the Month Customer Group. Designate which subscription you'd like to participate in. You'll be billed on your credit card once a month for the duration of your subscription.

Participation in this Club gives you a 10% discount off the 12-piece chocolate packages you'll receive during your participation.

PREFERRED CUSTOMER
If you've ordered from us at least twice, you can become a Preferred Customer. E-mail us at smithorganicchocolates@dejazzd.com if you'd like to be part of this group.

This Customer Group has a lot more flexibility. You only have to order twice, and then you'll get a 10% discount on your orders. We'll put you in this group, and you can order as much as you want whenever you want.

We think these changes will be of benefit to you, as well as help our bottom line. We appreciate our customers, and we will continue to bring you high quality organic chocolates.

Smith Organic Chocolates is dedicated to bringing you updated product and nutritional information.

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