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market-farming - RE: [Market-farming] Farm markets vs. getting out of farming

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Subject: Market Farming

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  • From: "Rick Williams" <mrfarm AT frontiernet.net>
  • To: <market-farming AT lists.ibiblio.org>
  • Subject: RE: [Market-farming] Farm markets vs. getting out of farming
  • Date: Sat, 8 Feb 2003 10:50:48 -0600

> Most people want to buy their food where it is convenient,
> affordable and they feel appreciated. They don't want to
> drive seventy miles. Can you blame them?

Which is my point. You have to have a product that they overwhelmingly want
and perceive that they can not get any other way. The fact is that there are
not many people who want to do that, no matter how much the folks with rose
colored glasses insist there are.

> As for prices, affordability is variable, and a function of
> income level. The more money someone earns and has
> as disposable, the more likely they are to have little free
> time to spend running around creation picking up food.

It depends. Who is the buyer? The person earning large incomes or a spouse?
It has usually been the spouse in such cases.

> Would you drive to LaCrosse for a hamburger?

Sometimes, but usually as I said earlier, it is when you combine several
things in one trip.

> Unless the $1/lb discount represents
> at least 20% off your regular price, don't expect much response.
> Consumers are not usually moved by discounts less than 20%
> and really start to move at discounts upwards of 35%.

It is higher on the lower cost Sirloin and less on the Porterhouse/T Bones.
But that was intentional.

> You may say discounting 35% leaves you no profit, but neither
> does dumping unsold perishable product. As for using a price
> markdown offer on existing customers, don't be surprised if that
> doesn't work because they buy at your normal price and are
> unmoved to load up for a small discount.

I would not think of it as a small discount, but it is mostly to qualified
prospects for replenishing their stock. We did not market to people who just
bought a half or split.

> Use large discounts only when they are advertised widely and
> for the express purpose of attracting new customers. They are
> like free samples only not so expensive for you.

That we would probably not want to do. I get really annoyed at retailers who
do that and tend to avoid them if I feel that they are screwing the regular
customers to get new ones. Just my bias I suppose.

Sincerely,

Rick Williams





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