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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: "jay gee" <jgj23 AT mindspring.com>
  • To: "market-farming AT lists.ibiblio.org" <market-farming AT lists.ibiblio.org>
  • Subject: RE: [Market-farming] Farm markets vs. getting out of farming
  • Date: Sat, 08 Feb 2003 12:10:09 -0800 (PST)

Mot to be argumentative ;-)

Rick Williams wrote:

>> 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.

In your case especially, you are unlikely to have a unique product.
Like it or not, beef (butchered or ground) is a commodity. According
to your posts, you are placing very high hurdles in the way of those
who might be interested in in buying your meat. So high that the
average person is likely to say, "I don't need this! This is too much
work!" They may buy once, but then they go elsewhere.

There are very few people on this list wearing rose colored glasses,
except maybe yourself. You continue to argue that your customers
should bend to your desires in spite of all the evidence to the contrary
that it won't happen.

>> 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.

Are there no two income families in Minnesota?
What reasonable person would burden their
spouse with a two hour round trip to buy some
steaks or roasts?

>> 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.

What multitude of things are offered in your area to
justify to a city dweller leaving town and driving for
an hour? They are unlikely to come to the country
for the retail shopping...

>> 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.

I think you missed my point. Unless you offer 35% or more off,
people are unlikely to respond in quantity. Makes no diff whether
it's Sirloins, T-bones or anything else.

>> 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.

Again, you are missing the point. Your existing customers do not
need a discount.

If you believe you are offsetting the value of their time to drive
140 miles by providing a discount, you are fooling yourself.

>> 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.

Exactly! Your biases ARE the culprit.

You can get all the annoyed you like, but these people
are using proven methods known to work.

I guess if you want to reinvent the wheel, that is your
business. I don't think most of the rest of us feel that
way -- we would rather make success the easy way,
by doing things that work.


Jay Gee
not a farmer - but interested in farming





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