We have found over the years of helping folks
develop their own labels that no two projects are the same.
Some are extremely simple and inexpensive. On the other
hand, some are very labor intensive and costly. To best
determine what is in the best interest of everyone involved,
we have developed a process that helps us help you reach
your goal efficiently and economically.
We first ask that you complete a simple “Co-Pack
Application” form that gives us some pertinent
information about you, your organization and what you are
trying to accomplish. From that, we can better determine
what will be involved in your product development.
In some instances, we meet to discuss specifics
of product development. In many cases, it is handled by
phone and email. Primarily, our discussion is to determine
recipes, containers, labels and quantities.
Credit must be established prior to recipe
development. You can use the attached
“Credit Application” or your
own “Credit Letter”. In the event credit is
not established, all orders must be prepaid prior to production.
If we are using recipes that you provide,
we will sign a “Non-Disclosure
Agreement” with you.
Test recipes normally take two to three weeks
to complete, depending on timing and availability of raw
materials.
STARTUP COSTS
Cost considerations vary depending on how
labor intensive it is for us to help you develop your product.
Startup costs are normally broken down into three categories:
recipe development, label cost and production cost.
Recipe development
In the event you want to develop a brand using
recipes that Riba Foods owns and we are willing to share
with you, with limited meetings and conferences, there is
little or no cost.
If we use your recipes, a $750.00 non-refundable
deposit is required for your startup project. This
covers the costs associated with delivering to you a recipe which falls within our production
capabilities and expertise. Once you approve the recipe, you will be given a production cost per jar
which includes all non-custom ingredients/components necessary for your product to be sellable.
Any costs that will require custom ordering will be borne by the customer at their expense.
Label design and production
The price that Riba Foods quotes for producing
product includes applying the label to the container. The
label design and production are the responsibility of the
client.
Label cost can vary drastically depending
on complexity. The following information describes some
considerations that may be helpful to new clients in developing
the label(s) that best suits them.
The basic elements of developing the label
are: design, art prep, printing plates, cutting die and
production cost.
Simple designs can be created
on a personal computer and refined (art prep)
by the printing company at very little cost. Riba Foods
utilizes a designer that produces quality art work at reasonable
costs.
Printing plates will vary
depending on the number of colors in the label.
Cutting die cost can be minimized
if the printing company will allow you to use a pre-existing
die.
Production cost will vary
depending on the number of colors and quantity printed.
Usually, about 25,000 labels is the first good break on
pricing. We can recommend the company that we use but you
can use whomever you please.
Label rolls must adhere to
the following specs:
• O.D. 12” Max; I.D.
3”
• Label out; left side off
roll first (right side off roll acceptable)
• Must be pressure sensitive
dye cut (not butt cut)
• Labels applied at 200 degrees
F, adhesive must withstand bubbling.
Excluding artwork, the label production cost
should be around 5 cents per label for 50,000 labels.
Production cost
Quoted prices are based on 300 gallon runs
per flavor/size plus or minus 10% with a three week lead
time. Example: 12/16 oz product equates to 1.5 gallons into
300 gallons is 200 cases, plus or minus 10 % (220 to 180
cases).
Volume Discounts: 5% volume discount for Full
Truck orders (minimum 42,000 pounds).
1. Order must be of
a single product.
2. Multiple products
can qualify:
a.
If the recipes are similar.
b.
There are no jar changes.
c.
Each product must have minimum of 200 cases.
Some products, because of their simplicity
of “set up and run”, are eligible for smaller
runs but with a surcharge. These are easy to determine at
the time of contracting and carry the following considerations.
Volume Surcharge
I: 15% surcharge for product runs of less than
300 gallons but more than 150 gallons. Lead time at RFI
convenience (normally 3 weeks max).
Volume Surcharge II:
30% surcharge for products runs of less than 150 gallons
but more than 75 gallons. Lead time at RFI convenience (normally
3 weeks max).
Volume Surcharge III:
45% surcharge for product runs of less than 75 gallons but
more than 37 gallons. Lead time at RFI convenience (normally
3 weeks max).
Three weeks lead time is important to plan
for because we use so much fresh product in our processing.
NEXT STEPS
The more you can help us understand what you
are trying to accomplish, the more effective we can be in
helping you get started. So first, submit the “Application”
and a finished product sample. That can be accomplished
with a meeting or simply by sending it to us. Secondly,
if we mutually agree to proceed with the project, it is
then time for you to submit your deposit, recipe, the “Confidential
Disclosure Agreement” and the “Credit
Application”.
Please contact us
if you have any questions regarding the procedure.
We look forward to helping you develop your
products.
