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market-farming - Re: [Market-farming] cost of sales

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  • From: Robert Farr - The Chile Man <rbfarr AT erols.com>
  • To: Market Farming <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] cost of sales
  • Date: Thu, 03 Feb 2005 07:37:12 -0500

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
EarthLink Revolves Around You.
 

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-- 
Robert Farr - The Chile Man
All-Natural Sauces, Salsas, Pesto, & More!
http://www.thechileman.com
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