TFL 0.00% 2.0¢ tasfoods limited

Regarding your few posts on online sales, Tasmanian perishable...

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    Regarding your few posts on online sales, Tasmanian perishable businesses make very small margins on online sales. Especially if you're an established brand in local supermarkets. Local customers should already be able to access your product from local stores, thus removing most of those from the potential pool, leaving interstate customers.

    The two main options for online distribution would be an express non-refrigerated such as StarTrack, who at current rates are looking at a minimum $35-40 shipping + packaging ($5 estimate) (parcels over 3kg can be up to $70).

    Otherwise a refrigerated transport company (HDS), who they have same-state inner-city delivery at $19/parcel, but needing to get the products to that state. For example they would need to be sent via pallets (roughly $190/pallet with SRT) or carton ($30/unit with SRT), to the HDS depot in Melbourne and then HDS deliver. Leaving almost $50 charge again in freight.

    Having an online platform is vital in the current market, but Tasmanian perishable businesses make zero profit of it. It's the reason Pure Foods closed theirs, and why a few other local ones also struggle and simply don't do much marketing on it.

    They need to fix their local distribution network, finally synergise the business units, remove the unprofitable SKUs, and start growing distribution interstate.
 
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