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  • From: "Cherry Tree Farms" <ctfarms AT helicon.net>
  • To: "Market Farming" <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] pricing
  • Date: Tue, 23 May 2006 23:45:24 -0400

2 things leap out at me:
 
1)  Many owners are agreeable if the price is right, otherwise they lose interest.  Each item needs to be priced individually, and he will order what he thinks he needs.  Your pricing will be compared to the other vendors that he buys from.  For top quality freshness, you can expect about a 10% premium over the standard vendor.  For example, when I first sold green bell peppers, I was able to get $14/bu.  Purveyors price was $11.80/bu.  Another farmer I know priced his at $18/bu and sold 6 bushel that entire  season.
        Finding out what the purveyors prices are in your area is a whole different game, sometimes bordering on espionage.
 
1a)  Does he do his own books?  Many places contract with an accounting service so expecting to get paid at delivery won't happen.  I would give a delivery ticket listing everything ordered/delivered (sometimes there were variances, especially for meats (ordered lbs vs. actual cut lbs., or if I had squash blossoms come on and he decided to take them even though he had not ordered them) then email or fax an invoice the following day.  Terms of Net 7 usually worked, some places net 14 were needed to get through their book system.  Just so you know what to expect up front, and know that he is expecting professional treatment.
 
2)  Most places do not have storage space, so your re-usable containers might not work except for things like salad greens in a bag that can be taken out of your container and put in their cooler shelf and you take your container back with you.  My experience with re-usable containers is 2 days after delivery they are still partially full, 3 days (the next regular delivery day in some cases) and the containers had been emptied and set out back and are no where to be found, they grow legs and walk away.
 
Hate to sound like I am squashing all over your ideas, but full disclosure:  I was the start-up manager for a cooperative of farmers that formed to supply a series of independent restaurants and stores.  Overseeing (read - doing much of it myself) ordering, delivery, pricing, invoicing, collections, formal business organization, and getting growers producing what the shops wanted through the first $750,000 of sales left me with a whole host of war stories.  The best thing you can start with is by trying to place yourself in the owners shoes; ask "If the roles were reversed, how could this person best help me?"
 
Good luck,
Doyle
Atop the PA Alleghenies
 
 
----- Original Message -----
Sent: Tuesday, May 23, 2006 1:28 PM
Subject: [Market-farming] pricing

Hello to everyone.  I have been an active listener for about a year now and this is my first posting.  I welcome everyone’s comments.  We are selling at the farmers market for the first time this year!!  We are very excited.  Additionally, we are selling to a local café.  I am about to go and discuss the plans for this venture with the owner this week.  He is a very agreeable man who is interested in supporting sustainable, local growing.
 
I am seeking advice from those already embroiled in this type of business.  Also, how do you price the deliveries?  Do you just agree to deliver what you have for a set price each week?  Do you price certain crops individually?
 
We will be delivering both produce and flowers in reusable containers, so costs are low.
 
Suggestions?


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