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market-farming - Re: [Market-farming] pricing

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Subject: Market Farming

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  • From: "TxBeeFarmer" <TxBeeFarmer AT HotPop.com>
  • To: "Market Farming" <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] pricing
  • Date: Wed, 24 May 2006 08:03:45 -0500

Ok, so mark it up 30 or 40%. The point is, you know the base price for your area, so just mark it up by a reasonable percent. That's what the stores do.

TxBeeFarmer
West Texas Zone 7b

On 5/24/2006 8:50:33 AM, Cherry Tree Farms (ctfarms AT helicon.net) wrote:
USDA does not have the pricing I was talking about; their price reporting
is
what you get if you take it to the auction house. To go back to my
original
example of peppers, auction price at that time was $4.65 net to the grower.

So just to take it to the low-volume (comparatively) retailer instead of
the
auction house was worth $7.15, more than double the return though there
is
the ordering and billing additional work as well. Trying to price at 10%
over terminal market puts one way under price for the small shops (not
significant volume grocery stores/supermarkets). Sure, you can move a
lot
of product while undercutting everyone else but do you want to leave that
much money on the table each delivery? And take it back through your
accounting system; where is your break even point and can you afford to
sell
for only 10% over auction?

Market breakdown (traditional):

Producer sells to wholesaler (auction house, where USDA & New Farm price
data comes from)

Wholesaler sells to Distributor (Chain supermarkets buy at this level,
truckload qty.)

Distributor sells to purveyor (Mixed truck loads, still truckload qty.)







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