How do I reduce expenses on my products without compromising quality?
When I started my small natural seasoning business, @bagusrl, in 2021, one of my biggest concerns was keeping my costs under control. As an entrepreneur, I know every penny counts, but I also understood that the quality of my spices is what sets me apart. I didn’t want to sacrifice that just to save a few bucks. Over time, I’ve discovered ways to optimize my variable costs—those expenses that fluctuate depending on how much I produce—without my customers noticing any difference in the flavor or essence of my products. Here’s how I do it:
1. I know exactly what each seasoning packet costs
The first step I took was breaking down the cost of producing a single packet of seasoning. For me, variable costs include the spices (like onion, garlic, cumin...), the plastic bags I use for packaging, and the labels. For example, a standard 125g packet of my All-Purpose Seasoning costs me $87: $82 for the spices and $5 for packaging. Knowing precisely where my money goes gave me the power to find savings without cutting corners on what matters. If you don’t know how much each component costs, optimization is impossible.
2. I negotiate with suppliers fearlessly
Once I had a clear picture of my costs, I started talking to my suppliers. At first, I felt shy about asking for discounts, but then I realized they want to keep customers like me just as much as I need them. I told them I’d buy spices regularly and asked if they could lower the price if I ordered in bulk. This way, I managed to bring the spice cost down from $87 to $75 per packet when I buy wholesale. The quality stayed the same—I still use the same natural spices—but my wallet feels the difference.
3. I tweak recipes without sacrificing flavor
Another thing I tried was revisiting my recipes. Early on, I was using large amounts of expensive spices without much thought. It’s not about removing the good stuff—it’s about being smarter. For instance, in my meat seasoning blend, I was heavy on garlic, which is pricey. I experimented by cutting back a bit on garlic and boosting the onion, which is cheaper but still delivers great flavor. I tested it with friends and customers, and no one could tell the difference. This shaved a little off the spice costs for some products while keeping the taste intact.
4. I produce in larger batches
At the start, I made small packets of 20g to 50g because I didn’t want to risk unsold inventory with bigger sizes. But I soon realized this was more expensive—more labels, more plastic, more time, and more electricity for the sealing machine. Now, I stick to a minimum of 125g packets. This lets me make better use of the spices and cuts the cost per unit.
5. I grow some of my own spices
Yes, since 2020 (even before starting the business), I’ve been growing some of the key spices I use in my production process. This has helped me lower costs at different points and maintain a steady output. Unfortunately, I have limited space to grow, and accessing more land in Cuba is a complicated issue. This lack of scalability has held my business back from growing further—an issue worthy of its own article.
Conclusion
Optimizing my variable costs didn’t mean selling something cheaper or lower quality. It’s about being savvy with my spending: negotiating better deals, tweaking things subtly, and working more efficiently. In my business, I’ve learned I can cut expenses while preserving the essence that makes my products special. My customers have benefited too—I’ve kept prices stable despite Cuba’s massive inflation and ensured a consistent supply of products. It’s been a win-win.
If you run your own small business, I encourage you to scrutinize your costs and experiment with small changes.
Ask yourself: Where can I save without losing the magic of my product?
- Cover photo and editing by me.
- Spanish is my native language, so I used the Google translator, with some modifications made by me to bring this post into English.
!BBH
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