Why are Vanilla’s and extracts so expensive?
Vanilla is the second most expensive spice in the world, next to Saffron. I use 1- and 2-ounce bottles so my customers can enjoy more variety without the higher price. For example, a Mexican bottle at 8 oz could cost near $100. Tahitian vanilla (low price vanilla beans) could be about $68 for 8 oz bottle. And lower price store brands which are Madagascar vanilla, you get what you pay for including the water. At Trapper Joes grocery chain, an 8 oz bottle of Madagascar vanilla is $55/bottle. Just as you want quality ingredients in your recipe, it turns out amazing. You have several spices in your cabinet, why not have several vanilla and flavor extracts also.
Quick summery of the process. Vanilla beans are already expensive, between $10-$60 per ounce. These are sliced, weighed and each jar has to be shaken a few times a day the first month, and a couple times a week for a full year while it's steeping into Vanilla. Then straining it several times, and bottling. I also create my own labels. And several recipes of Vanilla blends, like in our Diamond Collection, are my own. This process takes a minimum of 12 months, to 18 months.
With Spice Blends I buy fresh whole spices from an importer, I roast them, grind them, then make the recipe of the Spice Blend. A bit of labor in this process.
Flavoring Extracts, I buy organic fruit, nuts, top shelf spirits, spices and the fruit must be changed out every month, so they don't turn bitter. This process, along with the same shaking of jars, takes on average 9 months.
Rooibos teas, I import Rooibos from South Africa through a broker/supplier. I then have flowers, spices, always natural organic ingredients I blend with the Rooibos to create my tea flavors.
Why are packages/ bottles, especially of Tea and Spice Blends, not the same fullness in their jar/package? Because I measure the amount, and with moving jars/pkgs, the contents will settle, making it look less full. But they are measured to be the same amount.
Then with the cost of fruits, spices, vanilla beans, I also have bottles, jars, packages, and labels in the cost. The time & labor to make everything is also long hours. My prices reflect my cost to produce.
DD Inspired Creations, here the prices reflect again, the cost of the materials for whatever I'm making. My labor is very low.
Usually, they say take your cost of materials (ingredients & supplies), double that for your labor/time. Now take that price and double it for wholesale and double it again for Retail. For example, if the bottle and label is $2 ea. and the Vanilla is $10 for that amount (in bottle), $12 x 2 = $24 for MY labor/cost. $24x2=$48 for wholesale. $48x2=$96 Retail customer price. That is very expensive. So, I don't double each cost level, simply to keep prices reasonable for customers.
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