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The POS Software Blog

News from Tower Systems about locally made POS software for specialty local retailers.

Tagcost of goods

You buy raw material and bag your own blend. Where does the stock go?

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You buy raw material and bag your own blend. Where does the stock go? This is the question that separates software made for produce / stockfeed / farm supply businesses from software adapted to them.

You buy in bulk. Grain, pellets, minerals, chaff, whatever your mix requires. You combine it to your own recipe. You bag it, label it, and sell it under your own name. Somewhere in that process, most systems lose track.

What usually happens is that the raw material is treated as stock and the finished bag is treated as a separate product with no relationship to it. So the raw material never comes down, or it is written off manually, and the finished product appears out of nowhere. The stock on hand for both is wrong. The cost of the finished bag is a guess. And the gross profit on your own brand — often your best margin line — is unknown.

Our locally made and supported produce / stockfeed / farm supply software handles the whole chain. You record the purchase of raw materials. You record the mixing of those materials into your own product. The finished, packaged product exists as its own sellable item, with a cost built from what actually went into it.

The effect is that your own-brand line becomes measurable. You can see what it cost to make, what it sold for, and how it compares to the branded equivalent on the same pallet. Retailers who mix their own product usually suspect it is their strongest margin. Being able to prove it changes how they range and price it.

A few notes from our years of experience serving produce / stockfeed / farm supply businesses.

Recipes change with input prices and season. The software should let you reflect that without rebuilding the product.

Wastage is real. Build it in rather than pretending it does not happen, or your costs will read better than they are.

Batch and pack size matter. If you sell the same blend in 20kg and 40kg, they need to relate back to the same raw material properly.

If you make your own product for your business and your current system cannot follow it from raw material through to the bag on the floor, that is worth a conversation. Send me how your process works today and we will tell you honestly whether we are a fit. If we are not, we will say so.

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Contact us: sales@towersystems.com.au or 1300 662 957 or research us: www.towersystems.com.au. Locally made. Locally supported.

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