SHAH ALAM, 13 Nov: Bread manufacturer, Roti Sedap Sdn Bhd, is forced increase the price of their products to offset the production cost which has been surging recently.
The Marketing Executive of the company, Azlin Kassim, said among the main factors causing the increase in the cost of production is the recent increase in price of petrol and sugar.
The market analysis conducted by the company also expects other bread producers to take the same step and raise the price of their products.
“It is not our aim to reap in profit, but this increase cannot be avoided. Petrol, for example, we do not purchase 10 or 20 litres but thousands of litres to market our products throughout the country, and the same goes for sugar and so on.
“For 20 years we have been marketing our bread at a low price compared to other companies, but when the prices of raw goods go up; especially sugar, which has increased by twice the amount, and also the increase in petrol price, we have to increase our prices slightly.
“Reports from other bread producers also state that they are likely to increase their prices, otherwise they will suffer losses,” said Azlin when contacted by Selangor Kini.
However, Azlin added that until now, the price of products of Roti Sedap Sdn Bhd has been maintained at a low price compared to other competitors.
In addition to that, Roti Sedap Sdn Bhd has also taken steps to limit marketing their products to only stores that have high sales.
“Now, we can only sell our bread at stores where the sales are high, such as supermarkets or mini-markets, that can give high sales and that way, we can reduce product ‘returns’ that are not sold, thus every cent incurred can be leveraged.
“Previously, there was an estimate of 40 percent ‘returns’, but now, it can be reduced to only 20 percent,” said Azlin.