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Land
O’Lakes School Foodservice works with schools to offer
a wide choice of procurement options to fit the differing needs
of various operations. We can help you determine which method
is most beneficial for your situation and goals.
Fee
for Service
The primary method of charging for barrel conversion or
processing costs, the fee for service pricing option allows you
to budget appropriately and monitor your barrel conversion costs.
Land O’Lakes bills you the fees, which are itemized on your
invoice so you know exactly what you’re paying for each part
of the program. To evaluate the benefits of this method, be sure
you are aware of your total operating costs, including the value
of your commodity, storage and delivery.
Fee
for Service, Distributor
This method is an excellent option for schools that prefer
to work through a chosen distributor to combine delivery of both
commercial and commodity products. Your distributor bills you for
the fee for service, plus a handling/storage charge (usually a
set case price), which you negotiate directly. Again, you know
exactly what all your costs are. It also allows you to avoid commercial
mark-up on commodity items.
Your
distributor provides Land O’Lakes with a monthly activity
report, so we can maintain your donated food balance properly.
If you use all your donated food and want to continue getting
product, the price changes to the commercial price plus the handling/storage
fee from the distributor.
Rebate
This method allows you to purchase your items at the commercial
price, then receive the value back for your donated food. With
this method, you pay the commercial price up front, and then receive
a rebate equal to the value of your commodity with each order you
place. The value is based on the November 15 price index published
by USDA.
Value
Pass Through – Net Off Invoice
This method allows you to purchase product at commercial
prices from your distributor and receive a discount on each invoice
for the value of the commodities you diverted. When considering
this method, evaluate whether it is more beneficial for you to
use your state warehouse, or get commodities through your commercial
distributor. One advantage is pricing consistency. Since you’re
paying the commercial price already, you’ll continue paying
the same price when you’ve used up your commodity. However,
all program costs, including compensation to the distributor, will
be bundled into that price. You won’t have a breakdown of
what you’re paying for each part. You may also run into minimum
order restrictions from some distributors.
Which
Pricing Option is Right for You?
Give us a call and let us help you determine the pricing
method that best fits you operation. Make sure you know all your
costs so you can evaluate the pros, cons and efficiencies of each
option.
For more information, contact your sales representative
or call 1.800.898.8113.
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