[Market-farming] cost of sales

Robert Farr - The Chile Man rbfarr at erols.com
Thu Feb 3 07:37:12 EST 2005


As a value-added producer, I'm going to have to weigh in here.

No comment on the cost argument, but transforming my produce into salsas 
and sauces makes me about 20x more than simply selling produce!

We have a 40-gallon kettle, fitted with valves and spouts for easy 
hand-fill, and can fill up to 75 bottles/hour, including prep, cooking, 
and clean-up time.


Steven Rogers wrote:

> Steve Sando said it might cost $400 to make $500 in sales at the 
> farmer's market. How can it possibly cost that much? That is only a 
> 20% gross profit margin. My gross profit margins stay in the 65% range 
> and I sell wholesale so my prices are well below what I see at 
> farmer's markets. Seed is cheap, it runs me about 2.5% of my 
> gross sales. Also, I don't get discouraged or resentful when I talk to 
> fellow farmers who are doing better than I am. It encourages and 
> inspires me because it lets me know how much upside potential is 
> available. That's jsut me, I try to put a positive spin on things. 
>  
>  
> Steven Rogers
> singingpigfarm at earthlink.net <mailto:singingpigfarm at earthlink.net>
> EarthLink Revolves Around You.
>  
>
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-- 
Robert Farr - The Chile Man
All-Natural Sauces, Salsas, Pesto, & More!
http://www.thechileman.com
(540) 668-7160 (local No. VA)
(877) 668-7160 (toll-free)

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