Food Ingredient Buyers on the Prowl for Competitive Prices

Food Ingredient Buyers on the Prowl for Competitive Prices

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Due to the consumers becoming more cost efficient and price-savvy than ever before, big food ingredient suppliers and distributors are feeling the brunt of the companies who are staying unbelievably competitive with their pricing to keep business growing in these tough times. Giving the best deals isn’t always the easiest thing to do when you’re a food ingredients supplier or manufacturer.

One of the fastest growing trends that the food industry is seeing is a large break from the loyalty of it’s past food ingredient vendors and manufacturers. During better economic times, food ingredient buyers would often not obtain multiple quotes from the suppliers of the same ingredient so save time, and keep service consistent. They used suppliers that they knew they could depend on, even if their prices weren’t always the cheapest. Quality over price was definitely prevailing.

In contrast, food buyers are now shifting their buying habits like never before. Instead of obtaining 1 -3 bids on a product, they are now doing some heavy shopping around, often times, even looking outside of their country for better deals and quotes. After obtaining the quotes, they are taking the lowest quote even bargaining it down lower, to be sure they are cutting costs in every way they can. While under large pressure from their upper management to keep costs low, these food ingredient buyers are inadvertently creating a new market price gauge when negotiating such tough terms.

A few food companies have managed to continue to grow, while other have resorted to compromising on the quality and promises of their food ingredients products. While price gouging is common for almost every market, the food industry has some fairly dirty ways of getting around this, that ultimately affect the consumer and their end product.

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