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  • From: <ghfarm AT sbcglobal.net>
  • To: "'Market Farming'" <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] pricing
  • Date: Wed, 24 May 2006 13:14:27 -0500

I have been in the wholesale, retail and farmers market avenues for nearly
34 years now. My time and effort to do research is more than paid for. I
see it time and time again, people are so eager to establish a business or
adventure that they fail and fail miserably in marketing. And next to
marketing; is knowing their production costs.

Point, chiefs do not pay wholesale for goods. I will not share my pricing
structure, but I will say, that 20-25% more is a start, but today (which
brings to my 3rd point where people miserably fail) know your delivery
costs.

Take note, that the prices posted on various sites (such as the USDA) are
wholesale prices which do not include freight to the consumer and other
handling charges, such as shrinkage.

Failure will come to those who fail to educate themselves with a "well
rounded degree."

Work hard, sweat a lot, but be cool,

Ron

-----Original Message-----
From: market-farming-bounces AT lists.ibiblio.org
[mailto:market-farming-bounces AT lists.ibiblio.org] On Behalf Of logrock
Sent: Wednesday, May 24, 2006 1:00 PM
To: 'Market Farming'
Subject: Re: [Market-farming] pricing

Well, this is hearsay, but I was told by a member of a local farmer's
co-op that they charge restaurants 20-25% more than they get at the
farmer's market. They justify it because of the extra effort of billing
and not getting paid in some instances for 30 days, delivery, special
requests for packaging, etc. Again hearsay, but reportedly they get no
resistance to price because of the huge mark-up the restaurants will
get.

And this is not hearsay. The first time we were brave enough to
approach a chef, he told us "Charge me a little more, I'll gladly pay
it. I want you to stay in business. Just don't tell me you will
deliver something and not show up with it, because I am running a
business here too." He went on to say he understood that hail storms
happen, critter eat things, etc., and as soon as we realize we have a
crop failure, just let him know so that he could make other
arrangements.
-----Original Message-----
From: market-farming-bounces AT lists.ibiblio.org
[mailto:market-farming-bounces AT lists.ibiblio.org] On Behalf Of Lucy
Goodman
Sent: Wednesday, May 24, 2006 8:58 AM
To: Market Farming
Subject: Re: [Market-farming] pricing



What I do is charge restaurants exactly the same price that I get for an

item at the farmers' market unless they want to buy a case lot. this
means if the restaurant wants to buy say 4 bunches of radishes I charge
them the going rate at the farmers' market. but if they want 24 bunches
than I will give them a price break of about 25%.

the other thing you should do is ask the kitchen manager for price
sheets from his other purveyors-that way you know what =he is paying for

food and you can price accordingly. but remember the price sheets are
for case prices and they will charge more for a broken case and if this
guy is buying small amounts from you you should not be charging
wholesale prices unless you do not want to make any profit on this
venture.

Also realize your food will be fresher and often you will have varieties

that the restaurant cannot get from the big purveyors (like heirloom
tomatoes or peppers). if you are selling greens point out that you will
charge more than the big guys but your product will be far fresher and
there will be almost zero waste (often restaurants toss out 25% of what
they buy because it is rotting when it gets to the kitchen)

If you do use the USDA commodity prices or the OPX these are all
case/bulk prices and you should mark up at least 25 to 35% over those
prices for what your are doing.

Lucy Goodman
Boulder Belt Eco-Farm
Eaton, OH
http://boulerbelt.blogspot.com

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