Hiring Darryl’s Ice Cream Solutions, LLC as your ice cream consultant before contacting a co-pack manufacturer, is an important first step to save time, reputation and money.
Darryl only offers co-pack referrals to clients that have gone through a series of meetings in order for the client to have better understanding in all that’s required by a co-pack manufacturer.
Just because you’ve taken an ice cream short course, read how to books or have been making ice cream at a local shop, does not suggest in any form or fashion prepare you to engage with a co-pack manufacturer. In doing so typically results in burning a bridge.
The primary reason Darryl has a strict referral policy of introducing a call-in to a manufacturer, is to avoid bridge burning for future client opportunities.
To be clear, the main function of a co-packer is to manufacture product, they no longer provide services to prepare the customer for production such as –
- Product development
- Packaging and label requirements
- Ingredient suppliers
- Nutrition declaration
Many inquiries state they’ve been in business for some time so only need a recommendation and quite surprised when I go over the company’s referral policy.
In asking a few basic questions the responses are usually vague at best.
The enforced policy allows the caller to recognize limited knowledge in their product by simply asking a few questions.
Serious prospects say “let’s get started”, the not so serious say “thanks for your time”.
A short list of primary reasons Darryl’s does not make co-pack manufacturer recommendations to general inquirers.
The caller does not –
- Have a formula
- Currently purchase core ingredients with data sheets
- Understand the composition of their products
- Know pull temp, total solids or the over run
- Have a means of transportation to pick-up finished product
- Have a freezer warehouse secured to house the order
- Have a flavor schedule A or B
- Realize the funding required to fulfill the first PO
- Understand why minimum order requirements are established by a co-packer and by batch size
The limited list offers good insight of the manufacturer’s expectations of having available prior to contacting them.
Most people believe the co-packer will be excited for the opportunity to bring on new business and willing to conduct all sorts of services, however the short answer is no they are not.
When a client engages in Darryl’s consulting services, it allows them to become educated and knowledgeable about their product lines and really get prepared to make a co-pack connection.
The manufacturer expects each and every detail of your product to be in place in order for them to provide a cost to produce your dairy or plant based frozen product.
Investing in a clean room to make products, is not so far fetched.
Once a client understands all that is involved to be prepared for commercial manufacturing, they re-evaluate and change the discussion to “what is required in a space to make my product”?
The initial comment of “I’m not interested in making my own product” changes to “what do I need to do to make my own”?
A change of heart typically occurs once the client understands the ongoing investment for a co-packer to fulfill a purchase order to meet minimum order requirements.
Less Midsize Co-Packers
Over the past 15 years, larger US dairies and investors purchased smaller independent dairies that resulted in a dramatic consolidation of small to midsize independent manufacturing facilities today.
Co-pack availability and options have shrunk and as result, today most manufacturers make larger batch sizes and freeze and fill using high speed equipment to increase capacity, lower the cost per unit while increasing their minimum order requirement by sku.
In years past, dairies needed to offer services such as sales staff, warehousing, delivery, product development, labeling requirements and customer support to entice and on-board new business.
Today manufacturers have more business than they can handle and rarely seek new business or additional volume, it now comes to them.
The consequences of dairy consolidation now makes it very challenging for today’s start-up and growing companies to them make their product.
Co-packers see a continued increase in operational cost rather than ingredient, so running at maximum capacity in a single shift to control cost now treats every product as a commodity item.
More than ever before, owner’s need to have a firm grasp of their true cost of product, well before considering a co-pack manufacturer getting involved in your business.
Understanding your direct costs in ingredients, packaging and logistics is an extremely important requirement, no matter if you decide to make your product or use an outside resource.
Many times the initial cost to use a co-packer is the same as investing in your own production room.
Making your product will reduce minimum order requirements while offering the ability to feature more flavors in more categories.
Call Darryl today to book time and get on track to better understand your product, business and the real cost of doing business.
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