Farmer Marketing

Branding Tips for Farmers

2011-08-10T22:33:00.000-07:00

As a farmer, you may wonder how to get out of the commodity business and start selling your product directo to consumers. Whether it's through farmers' markets, roadside stands or delivery, the moment you start selling your product you start building a brand, and every small business owner faces many of the same hurdles. The first and most critical of these hurdles is name recognition. Any small business owner needs to get their name out to the public and raise awareness of their brand. As you start to build your small business, keep these small business branding tips in mind.

Tip #1: Name and Logo

It is important to have a company name that is easy to remember and a company logo that is easily recognized. Neither of these things is as important as getting your name and logo out there however. You probably don't have the budget to spend thousands of dollars to have professionals test and select the ideal name and logo for your business, but using a creative agency can be well worth the investment since you'll be using this logo for years.

Tip #2: Website Publicity

We live in a digital age where potential clients will use the internet to check up on your business and your references. If your business does not have a professional website, or if it is not up to date, then customers may be driven away. Keep your website current to reflect the business your company does.

Tip #3: Maintain a Blog

Keeping up with a blog will allow your business an opportunity to provide quality content on a regular schedule. The public is always looking for informed professionals instead of amateurs who appear to just be getting into the business. A blog offers your company and your clients a venue to have a two-way conversation about your products and services.

While a blog is a terrific way to keep your audience aware of developments within your company, it is just one of many tools and should be utilized. You do not want to limit your online presence to running your blog when that is just one site. A network of websites, blogs, and social media venues will maximize your influence and draw more users into your business.

Tip #4: Always Follow Through

Another of the small business branding tips we have to offer is to always follow through on your promises. While a good review can get lost, a bad one will spread like wildfire. If you promise to render a service, provide an estimate, or allow a customer to test a product, it must be followed through on quickly or else your small business will gain a reputation for being unreliable and erratic.

Tip #5: Do What You Do Exceptionally Well

This may seem obvious, but it is one of the most critical small business branding tips that you can take. Many small businesses try to do everything. If your company provides a service, make absolutely certain that you are the best provider of that service in your market. Your potential clients are looking for a company that will provide them with an exceptional product at a fair price. By trying to do everything for everyone you will end up creating an atmosphere in which your company becomes known for being mediocre in many things but great at no one thing.

I know many farmers will be intimidated by the concept of having a website and updating a blog. It's easier than ever with tools like WordPress or Blogger, so don't be afraid. Just jump in and start swimming.

Is your farm a safe workplace? Tips from the industrial sector

2011-08-08T22:32:00.000-07:00

**This guest post was provided by www.OSHA30.com, providers of 10 and 30-hour online OSHA safety courses**

Think about it. Every day countless numbers of folk get up, get ready, and go to work – day shift, swing shift, graveyard shift, long hours or short, hard work or easy, we work. It is only reasonable that we should expect to work in a safe place. What is not reasonable is that we should expect ‘someone else’ to make and keep our workplace safe for us without effort on our part as well.

The idea is to make a united effort to secure safe conditions in our workplaces so that we do not have to earn our daily bread under threat. Certainly there are big issues – quality building construction, secure electrical systems, wide, clear corridors, up to date, safe to use equipment and facilities – that we cannot take care of individually. But there are literally thousands of smaller things that we can take of as individuals or small groups. We just need to take time to see them.

For example, the builders of the buildings made sure to have ample exit routes on every floor. Are those exit corridors blocked, perhaps by excess inventory temporarily stored down a long hallway, or the walkway itself being cordoned off while waiting to be painted? Those workers affected by such obstructions can petition management to store inventory in the basement, perhaps, or ask that hallways be painted on weekends when no workers are in the building. Small things. Safer workplace.

A large industrial center may use high-pressure hoses to clean the floors at the end of the day. Is the stream of water sufficient to knock someone off his feet? Perhaps using reducers on the hose to cut the flow somewhat would be a good idea. And how about when the hoses are turned off until tomorrow; are they left lying on the floor, or are they stored on a hose reel? One person can make that workplace safer for everyone, in just minutes.

Is there a nearby supply of replacement light bulbs at your workplace? Is there a first aid kit within reach, and do you know where it is? Are electrical cords plugged into nearby outlets instead of snaking halfway around the room? Can you get to the fire extinguishers? Can you use them? Are there safe stepstools to reach supplies in the office storeroom? You get the point. Small things again. Safer workplace.

OSHA was made law in 1971; although its history has been politically tumultuous, its creation has ushered in an abiding movement toward safer, more secure working conditions for every working man and woman in these fifty states. This is a good thing. But there has been an unintended side effect: we no longer remember the horrendous number of workplace fatalities before OSHA, and our entire generation has grown up with no idea that they can be maimed, or even killed, in the course of their daily work. Such disregard surely breeds carelessness. Ask an OSHA Inspector.

It follows that the greatest workplace safety tip for every working person may well be simply becoming aware of our surroundings. If we are aware, we put ourselves in position to do something to change our workplace surroundings as necessary. We begin to ‘think safely’.

Take your eyes away from this printed text and think for just a moment: if you are at work right now, are you working in a safe place? Cupboard doors closed, doormats have skid-protection backing, stairways have handrails? If you work around machinery, are there machine guards in place, lockout/tagout systems in use, safety rails around scaffold platforms? Are hardhats, safety goggles, protective masks, and protective footgear in common use?

A quality workplace will have supervisors and other management personnel who support safety. You will not have to be adversarial in your approach to improving safety; on the contrary, your efforts and insights will be sought for, perhaps even rewarded. Safety programs and incentives abound, stepchildren of OSHA and incubators for thousands of safety improvements in individual workplaces in every corner of the country. So – do your part, be aware of your surroundings, and take pride in making your contributions to a safer workplace. Then enjoy your day at work: you’ve earned it!

Container Gardens – Small and Easy

2008-04-29T22:03:00.000-07:00

The past 100 years have seen a drastic change in the way people live and how they work. Gone are the days where most people lived on farms and everyone had a backyard garden. Today a majority of people live in cookie-cutter tract homes with microscopic yards (if they have a yard at all.) Do you live in one of these situations where you just don’t have the space for a garden? Maybe you don’t feel like you have the time. No matter what your situation this post can help you enjoy home-grown fresh produce.

What is a container garden?

Simply put, a container garden involves growing vegetables in a pot, barrel, or other above-ground container. Hanging baskets, whiskey barrels, terra cotta pots, old water troughs or last year’s flower pots all can be turned into beautiful miniature vegetable beds.

Benefits of Container Gardens

The first and most obvious benefit is the space you save. If you don’t have room for a traditional garden in the ground you can simply put a few containers along the fence or on the back patio to grow delicious veggies yourself. Second, container gardens are much easier to maintain. You likely started with a weed-free potting soil, so gone are the countless hours of weeding. Also, watering involves less time because it’s as simple as watering your house plants. Lastly, containers are mobile. If you live in a temperate climate where there’s a couple of frosty nights in the early fall, but the weather is pretty good for another month, all you have to do is pull the containers into the garage and keep your luscious plants alive for weeks longer than your neighbor’s garden.

Caring for Container Gardens

Since you’re putting your garden in a container your plants will be pulling both water and nutrients from a much smaller area. This brings up two major points to follow for container gardening success. First, when the weather gets really hot and your plants are really putting out the fruit you will need to ensure they get enough water. This may mean watering more than once a day. Can’t be there multiple times each day? Consider a drip irrigation system like this. Second, you need to keep the fertilize coming regularly. For tomatoes that are setting fruit this means weekly. For mixed pots I recommend a time release fertilizer such as Osmocote (you’ll find this type of fertilizer at any good nursery.)

Don’t forget that most veggies (peppers, cucumbers, tomatoes, beans, etc.) need lots of sunlight, so south and west facing exposures are your best bet for lighting. If you’re going to use a hanging basket, make sure it hangs low enough to get sunlight and that your hook is sturdy enough to handle the plant, fruit, and all the water your soil can hold. For a tomato hanging basket this can very realistically be over 15 lbs.

Best Wishes

I’ve written often about the benefits of locally grown produce and it doesn’t get more local than your own garden. I wish you luck with your gardens and please feel free to email me if you have any questions as you start your container gardens this year. Send emails to farmermarketing “at” gmail.com.

Marketing Farm Products

2008-04-02T20:41:00.000-07:00

I admit I haven't written in about a year and a half, but I thought this might help everyone find my past posts. I've listed them from oldest to newest:

The Fitness of American Agriculture

Why Organic Produce?

"Certified" Organic vs. The True Intent of Organic Produce

Selling Organic Produce, Selling Crafts, Heck, Selling Anything

Lessons from an Idaho Farmers' Market

The Oxymoron of Pricing

Farmers' Market Diversity

Organic Vegetable Gardening

Free Publicity

Product Selection vs. Profit Pools

Benefit Selling

Your purpose as a salesperson

Making the Sale, Closing the Deal

The Importance of Publicity in Marketing

Direct Marketing via the Internet

Heirloom Tomatoes

Internet Revenue for Farmers

Organic Farming More Profitable

Government Regulations Part I

Government Regulations Part II

Feel free to drop me a note (farmermarketing "at" gmail dot com) and Good Luck!

Government Regulations Part II

2006-10-03T13:11:00.000-07:00

So we continue to have issues with the state about selling our tomatoes by the pound. Let me give you the situation from which this arose.

New Location

The market relocated from a parking lot on a main street to a larger and more accomodating parking lot in Old Town. This move was debated highly, but made because of many factors. Some vendors weren't happy of course and have been attempting to start another market in another part of town. I only mention this because the heavy hand of the Weights and Measures people didn't come down until they received "complaints" about the way things were being sold. Mind you we have been selling tomatoes this way for four years and thousands of people have NOT complained. So as you can see the timing is somewhat suspicious.

Solutions?

Right now the only way to deal with this regulation is to sell tomatoes by weight. That is not what I would like to do as Part I below mentions, but it has to do for now. The only possibility I can think of for next year is to get an amendment passed in the state legislature that will amend the current statute to exempt farmer's markets from regulation. This will require some time and connections, but I think it can be pulled off. However, do any of you readers out there know how you write something like that?

Government Regulations: Part I

2006-08-21T08:45:00.000-07:00

Recently I have had a situation arise with government regulations that has really upset me. I hope that I can get some feedback from you, the readers, on how you have handled this in your situation.

How We Sell Tomatoes

About four years ago we changed the way that we sold tomatoes. We found that having a certified scale was difficult for two reasons. One, weighing every customer's tomatoes took a lot of time and led to a long line of people. Two, because the scale was being transported so often it often had to be reinspected so that the calibration was correct. Add in the additional expense of a certified scale and the yearly fee to keep it certified and we decided to find a better way of selling tomatoes.

The idea we developed was to sell our tomatoes on a "Fill the Pot" basis. We had two sizes of flower pots, one of which could be filled for $1 and the larger pot for $2. Customers hadn't used this system before, so we had a learning curve when we first started doing it. However, "Fill the Pot" became very successful for the following reasons:

1.)"Fill the Pot" was unique. We were the only vendor selling tomatoes that way and people remembered us for it.

2.)Customers were able to select exactly the tomatoes they wanted; size, color, ripeness, etc. This meant customers got exactly what they wanted.

3.)"Fill the Pot" was much faster and turned into somewhat of a game for our customers. They would pick tomatoes that were just the right size in order to fit more in the pot and get a better deal. They also learned to stack them up a little (which we were okay with) to get more. It was a fantastic system that worked for us and for the customer.

The "Problem"

Evidently our method violated a state statute regarding the sale of commodities. This past Saturday we had a government inspector come and demand we change. I'll explain the situation in my next post, but I hope to get some comments from you readers on how your state regulates farmer's markets and/or how you would handle this situation.

Organic Farming More Profitable

2006-07-27T10:26:00.000-07:00

I was making my usual rounds on the internet the other day and came across a new study done in Minnesota to determine the economic incentives to switch to organic farming over methods currently being used in the majority of the Midwest.

Organic Is More Profitable

The basic conclusion of the four year study done by the Agricultural Research Service (ARS) was that a 130 acre farm could increase it's profitability by switching to organic growing methods. This study is particularly credible given that they factored in transitional risks such as a learning curve and increased amounts of weeds during the learning period. This is great stuff and I encourage you to read the full article by clicking the link in the opening paragraph. I think that's hilarious.

PS This is entirely off the topic, but I read about a company that offers an inflatable male passenger for women who feel insecure about driving alone at night. They are using this as a gimmick for their main business of giving out a auto insurance quote and then trying to sign you up.

Internet Revenue for Farmers

2006-06-20T19:53:00.000-07:00

Over the last few months I have researched extensively on the web presence of farmers and growers. Looking at these sites I have seen a lot of good things and a lot of areas for improvement. Basically, the three main sources of internet revenue for farmers and growers will come from direct internet sales, affiliate marketing, and advertising.

Direct Sales

The natural/organic movement is extremely well suited for direct internet sales because of the focus on local production and freshness. Web site domain names sell for as low as $2.95. Hosting services such as BlueHost provide a year's web hosting for around $84 a year. Don't have the web savvy to build your own site? Simple web design can be contracted for on sites like eLance for around $500. Still need a secure way to take credit card orders? Paypal provides an easy way to just add a button to your website that sends all of your transactions through Paypal with a $0.30 transaction fee and around 3% commission. So, to make your first sale online, you only need to spend around $600. Therefore, just ask yourself how many sales you'll need to pay off your internet investment.

Affiliate Marketing

Once you already have an internet presence established and regular traffic to your site, you have the additional opportunities to use affiliate marketing programs and advertising. Affiliate marketing programs allow you to choose which companies you want to advertise on your site. Through services like Commission Junction you can search through a database of companies to find the one you like. You cut and paste a piece of HTML code into your website and you're ready to go.

Advertising

This basically translates into using Google Adsense on your site. If you don't know what Google ads look like you only need to look above the title of this article and you'll see two text ads provided by Google. Adsense has become the service of choice because Google searches over the text of your site and puts ads up that are related to the content of your site. Take a moment to notice what the ads are at the top of this page for an example. Google gets paid every time a visitor to your site clicks on the ads and you get a percentage of that fee. It adds up slowly, but if you generate a lot of traffic and a lot of clicks you can make some extra revenue from your internet site.

In conclusion, just remember that internet revenue is not a magic bullet that will instantly make you thousands of dollars and replace your physical sales avenues. Internet revenue is a supplement to your existing business that will increase your visibility and profitability.

Heirloom Tomatoes

2006-06-15T08:06:00.000-07:00

Saturday was an exciting day for me at the Southeast Idaho Farmers' Market because for the first time this year I had an appreciable amount of all-natural, vine-ripened tomatoes to offer for sale. Of all the produce we grow, those juicy, red tomatoes are by far the most popular and most welcome after an entire winter of flavorless grocery store tomatoes. Of course there were a few questions about the variety, because everyone marvels at how early they are, and inevitably a few customers wonder if they are heirloom tomatoes. Given the recent spike in interest in heirloom varieties, I would like to chime in with my two cents on the heirloom tomato phenomenon.

What is an Heirloom Tomato?

The definition that I feel most accurately captures the essence of heirloom tomatoes is that they are the varieties that your parents and grandparents used to grow. I know that this isn't very specific, but I think the connotation of the term heirloom tomato suggests that it is old and has some sentimental value. Most talk about heirloom tomatoes also mentions the distinct flavor available from heirloom varieties. Also of note is the fact that heirloom tomato varieties are pure-bred, that means not hybridized, so that you could take a seed from the tomato, plant it, and get a plant that produced the same kind of fruit.

So if you are looking for heirloom tomato varieties and can't find them, what are all of those varieties in your local greenhouse or nursery? Hybrids most likely. And why are there so many varieties of hybrids? I'll try to give a short answer. First, a hybrid is two varieties being cross-pollinated to produce a third distinct variety with different, hopefully better, characteristics than the parent plants. This process has been undertaken for three purposes:

Earlier and larger yields
Disease resistance
Patent protection

Early Girl is a famous hybrid variety. The hybridization is what led to the earliness of the fruiting. Also, hybrids have been bred for resistance to disease. That is what all the letters behind the variety name mean, like Early Girl VF. Patent protection refers to the fact that once a new variety is created, the seed company can patent it and be the exclusive seller of the variety. The patent is further protected by the fact that seeds from hybrid plants do not produce the same type of plant as the parent because of genetics that I won't discuss here. This translates into more money for companies that own popular varieties, like Burpee's famous Big Boy variety.

Why Heirloom Tomatoes?

I personally don't advocate either heirloom tomato varieties or hybrid tomato varieties. However, I believe heirloom tomatoes are an excellent choice for growers who are emphasizing an all-natural approach. Heirloom varieties have been around a long time. You can save seeds from year to year to reduce costs. Most of all, heirloom tomatoes are gaining popularity at nearly the same pace as organic produce. So in conclusion, I believe that heirloom tomatoes are here to stay and I'm interested in hearing your comments on successes/failures with heirloom tomato varieties vs. hybrid tomato varieties.

Direct Marketing via the Internet

2006-05-16T07:12:00.000-07:00

Today I start a new day job where I will be working on the marketing for an internet business. I believe that the internet holds huge potential for small marketers and that potential can be tapped by average people who want to market their product to a larger audience. Since most farmers and organic produce growers don't typically venture into marketing or the internet, I think this series of posts will be helpful for those adventurous souls who want to give the internet a try, but don't know how.

Getting Started

The first step in establishing an internet presence is to get a domain. This is the website name and address, like http://www.bradysplantranch.com. Domains names can be purchased for as little as $2.95 a year if you just want to "reserve" the name. If you actually want to have a website, you will need to purchase hosting from a company. Hosting means they store your information and send that information to anyone who types in your website address. Hosting fees start at around $90 a year and I have a link to one of my favorites, Bluehost.com, just to the right of this post. Once you have a domain name and hosting services you are ready to make your website. My next entry will talk about the different options available to you for developing your site.

The Importance of Publicity in Marketing

2006-05-08T16:22:00.000-07:00

While attending the big kick-off of the Southeast Idaho Farmer's Market in Pocatello, Idaho on May 6th I witnessed an excellent example of publicity, advertising, and cross-promotion working synergistically to increase traffic and sales.

Publicity Marketing

In 2006 the Southeast Idaho Farmer's Market moved from their original location of 15 years to the Historic Old Town section of Pocatello. This move had been highly debated, but necessary because of space limitations and other pressures at the previous location. Of course, moving from an established location is always risky, but the move needed to be made. Here is where publicity helped a lot.

Old Town Pocatello was very supportive of the move and actively assisted in publicizing the event. The local newspaper ran several articles on the move in conjunction with efforts to revitalize Old Town Pocatello. I talked with many customers who read about the move in the paper. This shows that publicity can drastically help traffic at your farmer's market and other selling locations.

Cross-Promotion

Another big boost to the publicity buzz was the cross-promotion of the grand opening of the farmer's market with a pancake breakfast and the kick-off for the Pocatello Clean-Up Day. By having the two events in the same location it made more people aware of the new location and offerings at the Southeast Idaho Farmer's Market. It also helped more people know about the clean-up efforts taking place. A win-win for everyone.

Advertising

Just as a disclaimer, please don't think that if you generate enough buzz and publicity that you can just quit advertising. Advertising is still important because it allows you to say what you want to say, exactly how you want to say it. Publicity can be biased and may not portray the exact image you want, so don't forget to continue utilizing your most effective advertising methods.

How Can Publicity Benefit You?

If you're a small roadside produce stand or a big-city farmer's market, publicity is a way to reach thousands of people for almost no cost. If you have a special event going on, many papers are starving for local content to keep subscribers interested with the onslaught of internet news sources. They want to know what's going on and write stories about it. So take confidence and get the word out by using publicity in your marketing mix.

P.S. I just read a recent story about Nancy Burpee and the difficulty she is having participating in the US Paralympics. She is being represented by Simmons, Jannace & Stagg in an effort to allow Nancy to compete. Support Nancy by visiting the above link.

Making the Sale, Closing the Deal

2006-04-25T19:12:00.000-07:00

Now that the farmer's market season is starting in earnest, I thought it would be useful to write a post on how to actually close the sale with a customer. This is the difference between a good saleperson and a great salesperson.

Is the customer ready to buy?

This is a tough question for many salespeople. However, there are some definate signs that the buyer is interested in making a purchase. 1) The customer feels/handles the product and closely scrutinizes it. This is a good sign they are interested. 2) The customer asks questions about the product such as how it is grown, how you make it, etc. 3) They have picked out the product and ask how much they owe you. Easy I know, but it does happen.

Now, If you honestly believe that the answer to this question is yes you should try to close the sale. Even in situations where you are in doubt I would recommend trying to close the sale because you don't get many sales that you don't ask for. Of course I am assuming that you have explained the benefits of the product and/or you see positive signs they are seriously considering making a purchase.

Closing like a pro

While many people believe that closing the sale is the hardest part of the sale, I believe it should be the easiest part of the sale. Allow me to explain. The customer has stopped at your location. That is a good sign. You have talked with the customer and explained the benefits that your product will give them and the superior value of your product. Hopefully you have noticed positive signs that they are interested, but close even if you haven't. So, closing should be easy because it is a natural conclusion to the selling process you have already started. But how to close?

There are a million different ways to close and you should develop a way that you are comfortable with and that your customers respond to. These are three generic ways that I have found very successful in almost any situation.

1.) The Alternative Close - Would you like 5 lbs. of potatoes for $2.00 or 20 lbs. of potatoes for $5.00? This close presents the customer with a choice between buying 5 lbs. or buying 20 lbs. Note that the choice is not between buying and not buying.

2.) The Assumptive Close - Can I put those cucumbers in a bag for you? This close takes confidence, but your confidence should rub off on them and reinforce their desire to buy. Use caution as this may come across as pushy to some customers, but most customers will be okay with it.

3.) Summary of Benefits Close - Those tomatoes are locally grown with no pesticides, vine-ripened for excellent flavor, and hand-picked. How many would you like? This approach reminds the customer of the benefits and then simply asks for the sale.

Of course there are many more ways to close the sale, but if you have been struggling I suggest trying one of these three. The most important thing I can say is to ALWAYS ask for the sale.

Your purpose as a salesperson

2006-03-24T11:30:00.000-08:00

Probably the first thing that comes to mind when you think of a salesperson is that pushy used-car salesperson. With the negative connotation often attributed to salespeople, I want to lay that aside for this discussion.

Who is a salesperson?

The quick answer is that you are. Because you are directly selling your products to consumers, that makes you a salesperson. Of course, you may also be the grower, owner, and worker, but you are also a salesperson.

Your purpose

The purpose of a salesperson, as we can figure out from the name, is to make sales. However, this should not be the only purpose. As a salesperson your customer comes to you with one of two problems.

1. They have a need.

2. They lack information.

Most customers fit into these two categories if you break the situation down to its most basic elements. Your purpose as a salesperson is to solve their problem. If you have the solution for sale at your booth, you will make a sale. If you have the information they are asking for, you will start a valuable relationship that could lead to sales. So what do you do if you don't have the solution or the information?

You help them get it somewhere else. I'm sure you've seen The Miracle on 34th Street where Santa sends the lady to a competitor for a toy and she becomes a loyal customer. This is extreme and overdramatized, but the idea is correct. People go to a salesperson to solve a problem. If you make sure they always get the solution, they'll keep coming to you. "So what?" you may say.

Implications

As long as consumers are coming to you for solutions to their problems, you are first in line to solve that problem. If you have the product they need you simply make the sale. However, as you see common problems come up over and over again that you DON'T have the solution for, you will become aware of opportunities for growth. You then put yourself in a position to solve their problem. So, in summary, your purpose as a salesperson is to solve problems. As you embrace this idea you will make sales, create relationships, and discover opportunities.

Benefit Selling

2006-01-30T20:06:00.000-08:00

What do you want to point out to your customers? What do you want to tell them so that they will love your product as much as you do?

Benefits

Most growers will start by telling their customers the attributes of their products. "Certified Organic", "All-Natural", or "Locally Grown" is probably one of the first things a grower will tell a customer. However, there is a better way.

Realize that these attributes are important, but I would guess that your signs point out those attributes. Benefit selling goes beyond just pointing out attributes to pointing out the benefit the attribute confers. Below are a couple of examples:

Attribute: "These tomatoes are vine-ripened."

Benefit: "These tomatoes are vine-ripened to give you that ripe tomato flavor like it came off the plant in your grandma's garden."

Attribute: "This is certified organic broccoli."

Benefit: "This certified organic broccoli is more nutritious and you can feel safe eating it."

I hope you get the idea. Do bring out your products' attributes, don't get me wrong. However, in your role as a seller you must take the customer from attributes to the benefits your product delivers.

Product Selection vs. Profit Pools

2006-01-23T08:32:00.000-08:00

An important decision that will soon face most farmers with spring coming is what to grow this year. Many will think of what grew well last year, what people liked, who else was growing certain items, etc. I propose the following analysis as one of the most important.

Profit Pools

Imagine the last time you visited a gas station while traveling far away from home. You chose the cheapest station you could see (even if the difference was only like 2 cents a gallon) and filled up. You then stepped into the convenience store and spent $2.50 for a drink and candy bar. Where do you think the gas station makes the most profit on your visit? I'll tell you that they probably made more profit on a drink and candy bar than a full tank of gas. Why? Because they recognize their profit pools.

Certain items are by nature very price competitive. If you are in the Midwest in June/July, corn is cheap and plentiful. Because of the price competition farmers have to sell a lot of corn to make a decent profit. However, a farmer with Japanese eggplant doesn't need to sell a lot to make a good return. Why? Because eggplant are easy to grow and you usually can't find Japanese eggplant in grocery stores. You usually find those big lightbulb-shaped monsters.

The lesson here is to recognize what items you can grow and how profitable those items are to you. If cabbage doesn't make you a lot of profit, replace it with something that does make a lot of profit. Seems simple right? I suggest that you need to answer the following question before proceeding.

Product Selection

One of the main ideas in marketing is to get your existing customers to spend more because getting new customers is much more difficult. The usual method is to broaden the product offering to include complimentary goods that go with what they are already purchasing. This is where the balance must be made. Do you limit your product selection to focus on highly profitable items, or do you broaden your product selection to get more dollars from your existing customers?

No single answer exists and you need to answer for yourself, but here are my suggestions:

-If you have limited space, I suggest focusing on high profit products.
-If you have plenty of space, maybe you just need to expand.
-Whatever you do, make sure that you are consistent enough to retain customer loyalty. Customer loyalty will always pay off whereas profit pools are always shifting.

In summary, look at your costs and revenues to find your profit pools. If your numbers aren't that good then use your intuition. Most farmers' market vendors have an inate feel for what they should do. Trust yourself and get your feet wet in the profit pool.

Free Publicity

2005-12-10T21:56:00.000-08:00

Perhaps one of the greatest assets of a farmers' market is their connection to the community. As a member of the community, a farmers' market can get a lot of good publicity for free.

Managing PR

Perhaps the best source of free publicity for community events is the local paper and news channels. With the loss of viewers and subscribers to national internet sources, local media are searching for unique events that can only be found on a small local level. This is the opportunity for farmers' markets to get free publicity.

It Takes Work

Don't think that publicity is going to come to you simply because you exist. Publicity has to be sought out and managed. The most important thing is to establish responsibilities with someone in the organizations you want to publicize your market. Once those relationships are in place, these are the steps I recommend taking:

-Write a weekly press release
-Hold special events
-Join the Chamber of Commerce
-Use local entertainers

Using these steps a farmers' market can increase its visibility without increasing its advertising budget.

Organic Vegetable Gardening

2005-12-05T08:52:00.000-08:00

I will be entirely honest by stating up front that I am not a USDA "Certified Organic" vegetable gardener. This isn't because I don't believe in growing organic vegetables, but because I don't believe that the government needs to oversee everything that a vegetable grower is doing and what they advertise.

Why Practice Organic Vegetable Gardening?

I believe that by growing vegetables in conditions that most closely approximate the actual, natural growing conditions improves the quality of the vegetables. I don't have any scientific data to support this, but I believe the following points to be true of vegetables grown in the organic garden:

1.) Organic and naturally grown produce is free of substances that even arouse suspicion of causing cancer or other diseases believed to come from unnatural agents. Thus, organic gardening gives peace of mind.

2.) Gardens raised using natural gardening techniques maintain a balance with the environment that allows for consistent, sustainable yields of organic vegetables. One day the grocery store won't have a produce section with every vegetable imaginable available any time of year.

3.) Organic and naturally grown vegetables have a superior taste. This is very subjective, but I believe it justifiable if only because organic vegetables are allowed to mature and ripen in the garden, on the vine. The nature of handling produce for sale at big stores just isn't the way it comes from the garden

Responsibility

My last point I want to make is simply that human beings have a responsibility to care for the land we use. This responsibility isn't the government's or the EPA's, but is a responsibility that lies with each individual. How much better would this world be if 6 billion little things were done to help the land and environment every day. That is just one little thing per person, per day.

P.S. For my definition of "organic" see my post titled "The True Intent of Organic Produce".

Farmers' Market Diversity

2005-11-29T19:36:00.000-08:00

This post is directed to the farmers' market as a whole, though the principles can also be applied to an individual vendor.

Getting Traffic

For a farmers' market to succeed, the key element is to get traffic. You have to get people to come out and see what the vendors have to offer. Of course you can advertise more, but that is an expensive option that most farmers' markets don't have the luxury of using. The easier way...

Increasing Product Diversity

An easier and cheaper way to increase the traffic at your farmers' market is to increase the product offering. This can be accomplished by either bringing in new vendors with new products or getting existing vendors to bring more product variety.

The reason that product diversity can increase traffic without the additional cost is because there are many people who know about the farmers' market buy don't come because what they are looking for isn't there. When they become aware of the new products they will come out and be in a position to buy the many other products that were always available. This means that sales will increase by the amount of new products sold, but also more existing products will be sold because of impulse purchases.

So increasing product diversity is not only good for the new vendors you bring into the market, but also for the existing vendors because more people are seeing their goods and when more people see the product more people buy the product. So look for new products and increase product diversity

PS Try to send roses from a farmer's market. Locally grown cut flowers are likely to last longer since they don't spend as much time in transportation.

The Oxymoron of Pricing

2005-11-19T08:49:00.000-08:00

For most farmers marketing their products directly to customers, the question of pricing seems simple: the lower the better.

The Farmer Mentality

The farmer mentality is an interesting one. With the nature of commodity pricing farmers are accustomed to selling their products at the market price, that means the lowest price that buyers can get out of farmers. The farmer takes the market price because they have bills to pay. Then next year they think that if they grow more they'll make more money, but the increased production drives the price down and negates the increase in production.

The Pricing Oxymoron

So how does the farmer make a better return? The more they grow the lower the price goes. If they keep production constant they continue to struggle financially. The answer is simple. Sell at a higher price. But how?

Price as an Indicator of Quality

When a farmer starts selling direct to customers, the farmer controls the price. However, the farmer needs to get out of the farmer mentality about price. That means pricing at a point that is profitable for the farmer. Now let me explain how to get customers to pay the price and like doing it.

1)Produce a superior product
2)Believe in your product
3)Price your product where you can make a profit

When people don't have perfect knowledge they often use price as an indication of the quality of the product. This means that if you have a superior product a low price might actually be turning people off. They might question your quality because the price doesn't match the advertised quality. This means that raising the price can actually increase the perception of your product. That means a better price for every product sold and you can actually make money doing what you do best.

Caution

This strategy will take patience. You may run into some resistance, but allow the change to happen.

Lessons from an Idaho Farmers' Market

2005-11-02T09:14:00.000-08:00

In my fifteen years of working with a small Idaho farmers' market I have observed many ways of presenting fruits, veggies, crafts, and a lot more. For this entry I want talk about the general appearance of the booth/display.

Appearance

The general appearance of your booth/display is critical to get customers to stop & look, decide, and purchase. For this post I will talk about how the appearance of your booth will get people to stop & look.

Branding

You have to keep in mind the brand image you are trying to convey. If you want people to view you as a local organic produce grower, you don't want your displays to look like the supermarket. As a local grower, you want people to associate with you. Use a rustic style table cloth that reminds people of how things were when they were a kid. Be friendly and talkative. Everything you do, say, and display is an extension of your brand.

Let me give you an example from the Idaho farmers' market that I have seen. The display is beside a large refrigerated truck and all the fruit is set out in a display for individual sale as well as bushel boxes stacked for sale. All the produce is perfectly cleaned and looks great. Obviously this operation wants to be seen as a big grower that delivers store quantity straight to you. In contrast, there is the two young kids standing by a card table with zucchini, squash, and a few tomatoes. Who sold more? Of course the big operation did, but these kids weren't trying to compete with that. They successfully portrayed an image of a backyard garden that grew a little too much.

Conclusion

Let me boil this down. Don't worry if your produce isn't perfectly shaped and cleaned. If your branding is as a local grower, those very imperfections can act as your seal of authenticity. I have rarely heard a complaint about a funny shaped cucumber or a dirty potato from farmers' market customers (especially not in Idaho). If you want a high-end brand image, work on professional displays and shine up that produce, but remember to be consistent. Again, everything you do, say, and display is an extension of your brand.

Selling Organic Produce, Selling Crafts, Heck, Selling Anything

2005-10-14T09:21:00.000-07:00

Getting this blog up and running has been a learning experience, but I am now ready to start a series of posts on how to improve sales of produce, crafts, homemade foods, and just about anything. My main point of emphasis will be in a farmers' market setting because I have been selling in a small Idaho farmers' market for 15 years, however, I think that the principles can be applied in many places

Signage

Besides having a great produce, I feel that having great signage is essential to success in a farmers' market setting. Why? Most farmers' markets are set up with vendor booths set up on both sides of walkways. How many aisles or the shape of the market is not really significant. What is significant to note is that customers are moving by your booth and will probably only spend from 5-20 seconds looking at your booth. This is a very short amount of time to convey the high quality, great value, uniqueness, etc. of your product. A key element in getting a customer to stop and purchase at your booth is signage

Simple and Direct

Given the short amount of time the customer is looking at your booth, don't put so much information on your signs that the customer just doesn't bother reading. Yes, I am talking to those vendors out there who have the big whiteboard/chalkboard that has their business name, specials, cute little additions, and all the prices listed. This is something I particularly have noticed with those vendors who are selling crafts. I am not telling you that you shouldn't have these type of signs, but I am telling you that it should not be your only signage.

Most likely the customer is not interested in everything you have to offer, therefore, they only want to see the price of the item that catches their eye. So, Rule #1: Have the price clearly marked on all the items you sell. And when I say on the item, the price should be in close enough proximity that a customer can tell it goes with the item even if they only look for 2-3 seconds.

Creativity

I discuss this topic with a certain amount of anxiety because I think that the more pressing problem at farmers' markets is not too little creativity, but too much creativity. This is because most consumers don't expect the local farmer to be a marketing genius and have creativity oozing from their displays. The rough look and dirty potatoes actually can enhance the local farmer image for some vendors. However, with little work on creative and informative signs, this same local farmer can have a lot more success.

For starters use descriptive terms. Don't just put "Onions", put "Sweet Onions" or "Fresh Onions". This sells the product to anyone who reads it. Also try to understand what your customers value. Instead of "Fresh Broccoli", try "Fresh Broccoli. Pesticide Free." Of course, you have to be honest in what you say, but I believe that a common trait of farmers' market shoppers is that they value organic produce and locally grown and produced goods. So if you already have that quality, make sure your customer knows it at first glance.

Lastly, get your customers to focus on the benefits of your product. If you sell ingredients, get them to think about the final product. Put a picture of a salad with all the fixings on your lettuce sign. Then the customer is thinking about the salad they are going to make with your lettuce and not so much about the price. This can be especially powerful in a discussion (i.e. asking someone how they use your product), but don't forget how it can help your signs too.

In conclusion, I think that anyone can improve sales by improving signage. If you already have very good signs, work on your creative aspect (keeping it simple of course). If you know your signs are lacking, start with the basics. I'll post a new entry every week, so bookmark this page.

PS I read an interesting bit on investment diversity the other day. It is about investing in silver as a method of diversifying your portfolio. Feel free to check it out.

"Certified Organic" vs. The True Intent of Organic Produce

2005-09-29T10:20:00.000-07:00

I first thought of just updating my last post on the benefits of organic produce, but my recent reading in the blogosphere has motivated me to elaborate further on what the term "certified organic" means versus the spirit of organic.

Certified Organic

The term "certified organic" was introduced by the government to regulate the growing market for produce grown without the use of artificial pesticides, herbicides, etc. This was in response to valid complaints from strict organic growers that the term "organic" was being used by unqualified producers. I believe the intent was correct even though I don't believe the government needs to do everything for consumers. Anyway, it was intended to indicate producers that were truly committed to organic produce and help consumers identify and buy from those producers.

Commercialization

Of course, it wasn't long before big businesses realized that the "certified organic" label meant a higher price premium and more profits. So many large corporations now are pursuing "certified organic" labeling for their products. This allows them to get their wares in small, health-oriented stores as well as on the shelves of your local superstore. I don't necessarily disagree with the labeling or the increasing availability of "certified organic" products. However, I believe the spirit of organic production is being lost in a battle of definition and regulation.

The True Intent of Organic Produce

In my 15 years of selling produce at a small farmers' market, I have realized that growing produce naturally is only about half of the story for customers wanting organic produce. Of course there are the health benefits, but the other half of the story is what I want to emphasize. When customers come to me week after week they develop a relationship with me as the grower of their produce. They have purchased great tasting, fresh produce from me in the past and so they keep coming back for more. So you might say the superior quality, both taste and freshness, is what keeps my customers coming back. But again you would be missing what I feel is the biggest point: they TRUST me! They know I am a local grower from a heritage of farming who pulls weeds by hand, picks by hand, and doesn't apologize when the produce is less than perfectly shaped or a little dusty. They are willing to eat what I grow because they know where it comes from, not because they know the government has been keeping tabs on me for their protection. This relationship of trust between consumer and producer is what I feel is the heart of "organic" and this is what people need to be looking for. Not a label slapped on fancy packaging, but a producer they know and trust.

Why Organic Produce?

2005-09-24T20:40:00.000-07:00

With so much publicity about the benefits of organic produce, I though I would add my two cents on the matter. Just to avoid confusion, I am not referring to the government's standards on "certified organic". I believe organic means locally grown by responsible stewards of the land that avoid the use of artificial herbicides, pesticides, etc.

Organic Produce Tastes Better

This is the best reason. When produce is locally grown you get it only hours from when it is picked. This means that tomatoes are picked red, cucumbers are crisp, and your carrots still have a little dirt on them. In my 15 years of experience with the Southeast Idaho Farmers' Market ( www.pocatellofarmersmarket.com ) I have seen hundreds of repeat customers who won't buy anywhere else because it just tastes better.

Organic Produce Is Healthier

I acknowledge that there is a lot of material out there that both sides of this argument will use to support their point. However, I base my opinion on the fact that people born in the early part of the 20th century, who grew up on farms the better part of their lives, and had access to the improved medical care of the late 20th century continue to amaze me with their longevity and quality of life. I know there are probably examples the other way, but I think they had something right and science will continue to support that.

Final Thoughts

In short, I hope that consumers will be willing to go to their local farmers' markets or roadside vegetable stand to get locally grown, organic produce. If you grow organic produce and are interested in how to successfully market your products direct to consumers, bookmark this blog and keep reading in the coming weeks as I post a series of articles on improving sales and building a strong customer base for organic produce.

The Fitness of American Agriculture

2005-09-08T15:31:00.000-07:00

With all the media hype concerning the poor health of Americans in general, I think it necessary to discuss the health of American agriculture.

Corporate Takeover

The small, family-operated farm in the United States is on life support. Census statistics continue to point out that fewer and fewer Americans are involved directly in production agriculture activities. One cause is the increasing number of large corporate farms. These large farms are able to produce at a lower cost than the traditional family farm, leading to the exit of more and more small family-operated farms.

While control of American agriculture continues to become more focused in the hands of a few powerful corporations, the potential for abuse also increases. Factor in the availability of foreign-grown farm products and soon these large multi-national corporations may move most of their agricultural operations into emerging agricultural superpowers such as Brazil.

Farm Survival

Currently, the majority of successful small farms are focusing more on local markets and exploiting profitable niches. Joel Salatin is a fantastic example of how a small operation can succeed while using agricultural processes that sustain and protect the environment. If you would like to see some other successful small farmers, visit a local farmers' market. I doubt that you would need to go very far, and I further believe you would enjoy the superior products available at these local markets.

Many small farmers are also capitalizing on the increasing market for organic and naturally grown products, and I don't mean just fruits and veggies. These growers also offer natural beef, lamb, pork, poultry, and more. Though growing at a rapid rate, I see this niche expanding in the next 5-10 years at an even faster rate given consumer attitudes regarding pesticides, herbicides, etc.

So What?

A question asked all too often, but often not out loud. The changing complexion of American agriculture will have a serious economic and physical effect on the health of this nation. How? That remains to be seen, but I look forward to your posts to see what you think.

Welcome to Farmer Marketing!

2005-09-07T21:34:00.000-07:00

Thank you for coming to visit Farmer Marketing. My intent in this blog is to give insights and observations on topics relating to sustainable agriculture, organic gardening, and marketing farm fresh products.
I grew up on a small family farm growing hay, barley, grass, and cattle. My father also started a commercial greenhouse and nursery with a produce garden. This has given me the opportunity to see many facets of agriculture from production to marketing at a farmers' market. My experience with marketing has been augmented by my current pursuit of a business marketing degree and my recent role as marketing intern for a farmers' market.
Please leave your posts and feel free to recommend other sites on the topics presented. Thanks for stopping by.