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market-farming - Re: [Market-farming] Advertising - follow-up questions

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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] Advertising - follow-up questions
  • Date: Thu, 13 Feb 2003 13:47:22 -0800 (PST)

Adriana wrote:

>Thank you Jay for taking the time to give a comprehensive answer. I
>have a couple of follow-up questions:

You are welcome. I hope it was helpful. (-:

>1. For a small market farmer with gross sales of say $20,000 per year
>who aspires to double their sales through advertising, what is a
>reasonable amount ($ or %) to budget for advertising?

Depending on what level of profit the farmer needs to
take away from the sales and what their costs are
as a percentage of sales, they might be able to devote
more than 5% to advertising.

The more appropriate questions are how fast does the
farmer want to double their gross? and if that means
doubling production, can the farmer deal with that?

Though effective advertising changes consumer
expectations about a product, your advertising does
not raise consumer income levels. Advertising
premium products in markets where there is little
income often does not pay back (sometimes it
does). In those markets, one has to build volume.

If a farmer has done no advertising previously,
their first year's budget might appropriately be
invested in establishing a strategy and five-year
plan, then buying some supporting marketing
tools which can be used to enhance the face to
face marketing done by the farmer at market.
If media buys or a web site fit into the plan, they
might be substituted for other tools, or used in
conjunction with them.

>2. How important is it that the advertising agent/consultant have
>prior experience with market farmers or food related businesses? How
>important is "local"? Let's say I want to establish a presence in
>several cities, are you better off using a local advertising agent
>who is familiar with that market?

Advertising is not a distribution business. Local reps
are not required to make media buys if you want a
presence in several cities. Dividing your forces
by having multiple agents/agencies would be
counterproductive.

While food related experience may be nice, it is
probably not necessary, but using someone or
some firm that specializes in manufactured goods.
Depending on who your market is, backgrounds
or experience with service business or local
retail sales might be fine. But you have to be sure
the person or firm has some idea of what you are
doing. If their only experience with a Farmers
Market is the Old Farmers Market in Los Angeles,
their concept will be worlds apart from the modern
reality.

>3. OK, what SHOULD a beginner be looking for - an advertising agency,
>consultant, commercial artist?

If you need a haircut you go to a barber
or stylist.

If you need a haircut, shampoo and set,
manicure, pedicure, facial, massage
and need them all in the same hour,
you need to employ a team.

How fast you want to get somewhere
determines how many horsepower you
need. But don't forget local speed limits
along the way, i.e., your ability to produce
and deliver without undue strain or a drop
in product quality.

An experienced, savvy consultant will
help you find your way initially, help you
get use to the fit of your new clothes
and image as you bring them online,
and help you find an agency when you
need the services an agency provides.

The average small market farmer will not
have need for an agency in the beginning.
When you buy an agency you pay for a
lot of overhead. When that overhead is
beneficial to you its expense is justified,
otherwise, your dollars go farther with a
knowledgeable consultant.

Seek out an artist or layout person when
you know what you want and you don't
know how to do it, e.g., you know what you
want your business card to say but you
are not a graphic artist, or you have an
idea for a farm logo but don't know how
to draw.

Hope I answered your questions.


Jay Gee
not a farmer - but interested in farming




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