International News
Freight Forwarders
2010 was a record setting year for the ZuPreem international business with growth of over 25%. ZuPreem obviously processed more orders in an increasingly difficult regulatory environment in 2010. One of the key initiatives to growing the international business for ZuPreem was to assist our importers in keeping product in stock by processing and shipping international orders quicker than we ever have. This was no easy task as containers have to be ordered from the freight forwarding companies, delivered to our facility, packed, and data needs to be gathered and forms need to be submitted to the U.S. government for regulatory documents. ZuPreem has streamlined its international order and shipment process and decreased the shipment time by well over 50% in the last 2 years. We are proud to say that we process completed orders from our importers and ship those orders on average of 9.5 days when importers used our freight forwarders.
When importers utilize the ZuPreem freight forwarder network their orders take 44% as long to ship as when an importer wants to use their own freight forwarder. An analysis of orders where importers utilize their own freight forwarders shows the average order takes 21.25 business days to ship compared to only 9.5 days when the ZuPreem freight forwarder network is used. This is an unacceptable situation to us and it should be unacceptable to the importers utilizing their own freight forwarders.
NOTE: ZuPreem does not make any money on freight forwarding services. The amount charged by the freight company is the amount that is charged to our customers. We utilize several freight forwarders to make sure that we get competitive prices for our importers.
Using Your Own Freight Forwarder
Order processing and shipment delays are caused by several factors
1) Communication issues between the freight forwarders, importers and ZuPreem. Utilizing your own freight forwarder adds a “triangle” relationship and these types of situations almost always cause communication problems and frustration for all parties. The data verifies this.
2) Expectations- We have high expectations of ourselves and the freight forwarders we work with. If our freight forwarders do not meet our expectations we use other freight forwarders.
3) Equipment- Our freight forwarders are in the business of shipping product from the U.S. to foreign countries. They have a lot of equipment (containers). We often run into equipment shortages that delay shipments for many weeks when using foreign freight forwarders.
The result of these delays cost both ZuPreem and the importer money. The delay in shipments will likely cause an out of stock situation for the importer resulting in initial lost sales and additional lost sales by allowing consumers the opportunity to switch to another brand. Delays by these freight forwarders means that we have much more processing time on these orders and the orders take up valuable work space on our warehouse floor.
We are proud of our improvements and we look forward to performing at an even higher level in 2011.
In the future we will insist that you utilize one of our freight forwarders. We will process your orders faster and we will all be better and more profitable.
Dear ZuPreem International Partner,
Due to the increasing cost of ingredients and fuel as well as other materials such as packaging and shipping containers, we find it necessary to adjust our prices. This price adjustment is effective February 28, 2011. On average avian and ferret diets will increase by 8%, Zoo diets 10%, Small Animal diets 15%.
This is the first price increase ZuPreem has ever made on its small animal line since these products launched in January 2007. Please note that we are not increasing the Natural AvianBreeder products to be as sensitive as possible to the economic impact on this important market segment.
We have made every attempt to adjust our operational structure to minimize this increase. Your new price sheet will be sent by email.
Best regards,
Bob Dippold
Director of International Business
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What is the value of one Bird Owner?
Question: How much is a cockatiel worth to your business a year? Answer: Thousands of dollars
Now before you send me an e-mail telling me what a small amount of ZuPreem a small bird eats, read more to learn the rest of my logic. Before I answer the previous question I am going to ask you another question.
Question: How much is the new average pet store worth to you?
Answer: Only you know the answer. However, getting one product into a store gives you the opportunity to sell many more products and product lines into that store. The first sale is the toughest. How much effort and money does it take to get that first sale?
So, you may be wondering what my second question has to do with the first question. The answer is that if you do it correctly, one cockatiel can help you get a new store. Many of our importers have web sites. It is certainly great to get a new consumer buying from your website. However, it is even better to be able to use that consumer that is looking for ZuPreem to gain a new retailer. There is probably not a stronger reason for a retailer to take on a new product than being able to give them a new consumer ready to buy a product from their pet store. So, next time a consumer comes to you looking for ZuPreem, try to gain a new retailer close to the consumer.
If you take 50 consumers and gain 50 new retail locations you will sell a lot more products in the long term.
Wild parrots of Australia up close and personal
On a business trip to Australia in October Bob Dippold had the opportunity to be in nature with wild parrots of Australia. Matt Baird, a well known breeder and international speaker about parrots was kind enough to take Bob to a location outside of Melbourne where he was able to see many native birds of Australia. "It was a tremendous experience. To be standing in the forest and then suddenly be surrounded by Crimson Rosella parakeets, King Parrots and eventually 20 Sulfur Crested Cockatoos was amazing. I was even 1 meter away from a Rose Breasted Cockatoo. I thought that one Cockatoo in a cage was noisy. When a storm is coming 100 Sulfur Crested Cockatoos are a better alarm system than anything that man can invent."
Thanks to Matt Baird for giving Bob a memory of a lifetime and with his help in connecting us with distributors in Australia.
ZuPreem introduces ZuPreem FruitBlend Avian Maintenance 16 kilogram sizes
ZuPreem introduces the new 35 pound (16 kilogram) FruitBlend Avian Maintenance packages for Large, Medium-Large, and Medium Parrots.
"This new size will be the lowest cost per kilogram for parrot owners to purchase FruitBlend Maintenance Diets and represents a 4% reduction to the current ZuPreem 9 kilogram package. The 16 kg package is targeted at the professional or large hobbyist."- Bob Dippold
In addition to the 35 pound (16 kilogram) package ZuPreem will also offer a new 17.5 pound or 8 kilogram bag and eliminate the 20 pound (9 kilogram) bag. The price on the new 8 kilogram size will be 14% higher on a per pound basis than the previous 9 kilogram size.
"The price difference between our small packages and our previous 9 kilogram packages on a per kilogram basis was just too great (30%) and it didn't make sense. Our small bags should be sold to bird owners with one or a few birds. Our new 8 kilogram medium packages are for the small hobbyist and the pricing is now appropriate in relation to our small packages. Our medium package is a 20% savings over our small packages. Our new 16 kilogram package is for the professional or large hobbyist. We are offering a way for parrot owners to purchase ZuPreem FruitBlend Maintainance Diets for less than they have paid in 2 years when they purchase the new 16 kilogram package. We realize that a consumer may be upset that we have taken a price increase on our traditional large package (the 8 kilogram package) if they do not know about the 16 kilogram size and price. It will be important for distributors to offer the choice to pet stores and consumers of the 3 packages. The retailer or consumer can decide whether the small, the 8 kilogram or the 16 kilogram packages makes the most sense for their needs."- Bob Dippold
Kirk Durham, Vice President of Operations explains how ZuPreem can take a price decrease on the new package even while faced with higher grain prices. "Ingredient expenses have gone up since our last price increase on our products. The cost of the product is more than just the ingredients that make up the food. The cost of the packaging and the labor to fill the products can sometimes cost as much as the actual ingredients and processing. We typically have less labor and packaging cost per kilogram of food with the larger packages that we have. Even though our cost have gone up since we took our last price increase, our new 16 kilogram bag allows us to lower our production cost and pass savings onto the market."
ZuPreem will offer larger packages in the 17.5 and 35 pound sizes (8 and 16 kilogram) on Large, Medium- Large and Medium FruitBlend Maintenance Diets.
ZuPreem will offer 10 pound (4.5 kilogram sizes) as the largest offering of Small and Extra Small FruitBlend Maintenance Diets.
All 20 pound FruitBlend Maintenance packages are no longer available.
A new price list will be sent out shortly.
All other large packages for Natural and Breeder products are not affected.
