We have just completed our bookkeeping for quarter 3, and 4 products (Arctic surf clam, American lobster, great Atlantic scallop and giant tiger prawn) stood out for the wrong reasons. Our product cost has always been much higher (35% - 40%) compared to the industry standard (25% - 30%); unfortunately for us, the frequent changes made to suppliers/supplies due to our pursuit for quality pushed our actual product cost for these products beyond 40%. Coupled with their seasonality pricing, we were hit with very low margins and this has impacted us financially.
With that, I have to increase the prices for these 4 products just to put their costs back down to 40%. Do trust that we will continue to monitor, negotiate and source for quality produce at a better deal. Whenever we get them, my commitment is to pass on the savings to you.