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Degustation of the price

Storehouses of Bykhov vegetable can factory producing the products under the brand name “Khozyain-barin” keep a four-month stock of goods. Even though the company’s equipment is modern and the product range is wide the products do not sell well. What is the reason?

Vyacheslav Osmolovsky, the head of Mogilev region’s State Control Committee, is sure that the company lacks trading skills.

According to him, the factory has spent millions of roubles to advertise its products. There is no result. The company does not have money for aggressive advertising. If the factory promoted its goods more actively the sales would be much better. The company has upgraded its marketing service. It’s really good. But the enterprise has lost employees skilled in sales. They were replaced by beginners in this sphere. They are not skilled enough to promote the factory’s goods at the market. We have carried out shops monitoring. The results show that some outlets even do not get offers from Bykhov vegetable can factory to provide them with products. At the external markets the factory’s products are not competitive because of high prices: competitors’ goods are cheaper. At the same time Bykhov’s prices could be lower if there were reasonable price policy. Alas!.. Bykhov vegetable can factory has a farming branch “Mokryansky”. Last year the branch grew cabbage to the order of the factory. But the cabbage has been stocked as a reserve by now. Even there is a stock of cheap raw material the factory bought cabbage from the other provider very expensively. Law-enforcement officers are investigating details of this absurd purchase at the moment.

Bykhov vegetable can factory uses imported glass jars. Belarusian glass jars would make the price 5% cheaper and more competitive.

The director of the factory Sergey Gromyko says that the company has to look for new markets more actively. But these are empty words. The situation at the enterprise is really serious: the factory had to stop production process for two weeks because of lack of money to pay gas bills. Millions of dollars invested in the factory’s modernization has not paid back yet. In 2012 Bykhov vegetable can factory had no losses. But specialists say that clear profits of the factory excluding salary payments, payments for energy, raw materials, taxes and credit loans made BR3 m over 12 months. Financial results over 2013 are not expected to be much better…

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