WITH the recent increase in sugar price, transportation fee, compounded by the electricity tariff increment, many entrepreneurs have taken the liberty to increase the prices of their end products.
However, there are still some who chose not to jump on the bandwagon and continued to charge the same price for Chinese New Year cookies as previous years.
One of them was Susan Yeoh, an entrepreneur, who said she would sell a jar of her home-made pineapple tarts, chocolate chip cookies or cashew nut cookies at RM15.
“I know the price of sugar has gone up and the electricity tariff hike is also suppose to take effect this month, but I would like to see how much these costs first,” she told The Star.
“Furthermore, most of my customers are friends and regulars who have supported me for a very long time,” she added.
Yeoh, who has been baking cookies for about 24 years, also said that she would not sacrifice on the taste and quality of her cookies because of the higher price for sugar.
“My customers are quite fussy eaters.
“They will know instantly if the cookies are nice or not,” she said in jest.
“Some customers told me that my cookies are quite pricey, and yet they still order from me as they like the taste of my cookies,” she said, adding that she baked nine varieties of cookies.
Yeoh also said that orders for cookies usually came a month before the festivities.
“I can get about 100 orders and will need to start baking as early as possible.
“I only have a small oven at home and am assisted by my husband and son,” she said.
“All the rushing and baking is a tiring process, but I am satisfied that my customers enjoy my cookies,” she added.
Even though his Chinese New Year cookie suppliers have raised prices, confectionary trader Tan Wan Wah said he would absorb the extra costs in hopes of not burdening his customers.
“I have been selling thousands of tins of cookies every Chinese New Year for over 30 years.
“I start selling the cookies about three weeks before the festival and most of my customers are regulars who have patronised my stall even when I was still selling confectionaries at the Bercham wet market,” he said.
Tan said he has not seen a noticeable difference in the number of customers frequenting his stall this year compared to previous ones.
“We hope to make more sales this year to make up for the losses incurred by not raising our prices.
“Luckily for us, there has been no news of any rise in the rental of our stall at the Bercham wet market, so we are still able to make ends meet,” he said.
However, home-made pineapple tart baker Lau Lee Kim said she has increased the price for a jar of the cookies by RM1 to RM18.
“I sold a jar of the tarts at RM17 last year.
“The current market dictates a lot of changes in pricing for Chinese New Year cookies.
“I must clarify that I did not just increase the price because of the sugar price hike or electricity tariff,” she said.
“It also takes a lot of work to prepare and bake the tarts,” she added.
Lau said demand for her tarts were slow but hoped it would improve now that the festivities were just around the corner.
“I have received only about 100 orders for now.
“As there are still about three weeks to the celebration, I hope the orders will stream in soon,” she said, adding that she sold about 200 jars last year.
A housewife, only known as Amy, said she had raised the price of her pineapple tarts to RM20 per tin.
“The current price is RM2 more than last year.
“I have no choice, as the price increase in sugar and other necessities since Budget 2014 came into effect has jacked up production cost,” she said.
Amy began selling pineapple tarts about five years ago and was currently selling about 300 tins every Chinese New Year.
“My customers are not surprised at the price increase as they understand that it now costs more to make the tarts,” she said, adding that there was a slight drop in orders,” she said.
Confectionary baker and trader How Huan Teik said he raised the price of his Chinese New Year cookies by about 5% to 10% after the electricity tariff hike and sugar subsidy removal.
“Now, our cookies range from RM10 to RM23 per tin depending on size and type,” he said when met at his stall at the first floor of the Bercham wet market.
How, who is also the Kinta Small Traders Association chairman, said the price increase for his cookies were quite low compared to other traders.
“Most of the cookies we sell, such as our famous kuih bangkit, kuih kapit, yam cookies and peanut cookies, are made by us.
“Thus, we are able to control our manufacturing costs when the need and opportunities arise, which helps offset the price hikes to a certain degree.
“Those who source all their cookies from other bakers and factories do not have the same option because they have to raise their prices in accordance to their suppliers,” he said, adding that the suppliers for some of his cookies raised their prices by about RM5 per kg.
How also shared his opinion that a minimal raise in price of his cookies was better than compromising their quality.
“As bakers who take pride in our work, we can take a smaller cut in profit if it means not scrimping on ingredients.
“Even so, we have our own daily expenses to bear, so a minimal hike in prices is inevitable.
“Another method for cost control is to maintain the prices but reduce portions slightly,” he said.
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