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  • From: "mtlivestock" <crublee AT libby.org>
  • To: <market-farming AT lists.ibiblio.org>
  • Subject: [Market-farming] pricing
  • Date: Thu, 19 Aug 2004 11:14:06 -0600

We are in an area that is isolated. So our success may not be duplicated in
large, multi-market areas.

We educated folks on the need to charge reasonable fees for reasonable
profits. We also spent a great deal of time educating the public on the
costs and work that goes into growing local foods. After just two years, we
saw a big reduction in this pricing problem. Another year later, most of us
worked together to keep our prices reasonable by using the "sale barn"
market prices as a guide. We all charge differently for different services
or ways of selling our products, but we all sell the same product. In the
end, we average about the same prices. We just go about pricing a bit
differently (to allow that independence we farmers love!).

We just had serious discussions with a few others we network with about our
product. We saw the benefit of increasing all our prices to an average,
reasonable price. We share customers and in this manner, someone gets a sale
at any moment. In this manner, we sell more, our network folks sell more,
and we all get the about the same prices. Our customers? They REALLY
benefit as they get a great product anytime they need it without the high
costs that would occur if each farmer had to increase their inventory to
meet "on demand" shopping!

Set up producer meetings touting the benefits of average prices among
members. Find references online in many marketing and market garden sites.
The farmers can emphasis the way the food is produced, packaged, etc.
instead of letting price be the sale clincher.

Sorry, I am not saying this well. But I don't think competition from
low-cost sellers will be an issue if you take the time to hold a few
producer meetings and set some good ground rules. AND educate your
customers! Low-cost sellers need to be educated on the prices people are
willing to pay and their labor being an important production cost. These
usually get a low-cost seller to increase their price up to reasonable.
Showing how it hurts all farmers is also a good way to make a change.

Christina





  • [Market-farming] pricing, mtlivestock, 08/19/2004

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