Business model change for a home-based salsa company

Challenge

After 7 years of producing a line of 4 salsas, the owner was fried and in need of a new approach to production, packaging, shipping, and pricing.

Services

Before we could run down the recommendations path
we had to spend time reviewing COGS specifics and details and accuracy of the company’s P&L
Additionally, research was required to identify possible co-packers and distributors for their product set, and to identify possible cost savings.

Solution

We helped the owner vet three co-packers and negotiate terms, devised a reliable system and platform for tracking COGS and associated labor costs, and addressed what’s next for the owner and existing debt, profit margins, and sales activities.