Showing posts with label farmers market. Show all posts
Showing posts with label farmers market. Show all posts

Monday, May 14, 2012

FARMERS’ MARKET VENDOR SALES TIPS

I created this list of sales tips for the recent Greenbelt Farmers' Market Newsletter.

FARMERS’ MARKET VENDOR SALES TIPS

By Peter McClusky

The sales tips below will both enhance your sales and help your customers to better appreciate
the superior value of your products.
YOUR TABLE
Create a visually cohesive display - Make it easy for passing customers to understand what you sell. Place like products together.
Abundance – Continually re-stock your table to give the impression of abundance. If you're
running low on products, transfer them to smaller containers, so they look full.
Packaging and display – rustic or fancy? When planning your packaging and display,
consider the market where you sell and who your customers are. Selling vegetables out of
cardboard boxes works well, but prepared food products, such as baked goods, may sell better in formal packaging and displays.
Different levels – use inverted baskets or risers to create graduated levels on your table. This
is a better use of your table space, and brings your products closer to your customers' eye level.
Colours – use vibrant colours in different parts of your display to draw the eye to less popular
items. For example, if you sell vegetables, use red bell peppers and tomatoes.
Samples – providing free samples is a great way to acquaint new customers with your products or introduce your current customers to a new product.

EFFECTIVE SIGNAGE AND LABELS
Prices – Show your prices. Customers are more likely to buy if they see a price.
Discourage price comparing - Charge prices that can't easily be compared to the weights and
measures used by supermarkets. For example, sell 200 grams of garlic by the bag, not by
weight. In any case, always keep prices clearly marked.
Product name and info - Providing information adds to the perceived value of your products.
For example, if you sell three types of potatoes, indicate how best to cook each type: boiled,
baked, etc. If your products are from heirloom seed or are particularly high in nutrients, etc, add
this valuable information to the display.
Other signage ideas – use phrases that remind customers that you're local, and give
interesting information, such as “harvested yesterday” or “delicious in salads.”
Take-home info – Remind your customers where they bought your products. For example, if
you're selling frozen chicken, label each package with the farm name and a description of your
farm. When your customer later cooks the chicken they'll have a reminder where this delicious
bird came from.
Recipes – display printed recipes, to encourage customers to buy something new.

MARKET RELATIONS
Partner with other vendors – create free samples that combine ingredients from other stalls in
your market. For example, if you sell cheese, ask the nearby bread vendor to give away
samples of their bread with your cheese. If there is a prepared food vendor in the market,
suggest how they could use your products in their menu.
Your market manager – Provide content for their market newsletter. Offer recipes that use your
products, and tell them about new produce you'll have for the next market day. Your manager
will appreciate it – you're making their job easier, and you'll bring more customers to your stall.
Ask your manager what else you can do to help to further improve the market.

YOUR PRODUCTS; YOUR STORY!
A 2012 farmers' market survey suggests that once customers know their farmer and better
appreciate the hard work that goes into producing local food, their concerns about prices tend to disappear.

YOUR CUSTOMERS
Start a conversation - Find ways to tell your story to your customers: Why do you farm?
What's special about your products? What challenges do you have? When was each item
harvested? What farm methods do you use? How many hours a week do you spend weeding?
Clearly indicate any certifications or affiliations. Show pictures of your farm, including images of you and your colleagues working in the field. If they're looking at your stall but seem unsure, ask them what they're planning to cook. Are they cooking for children? Are they an adventurous eater? With this information you can suggest recipes that include your products and the products of other vendors in the market.

As they leave, say, “Next week tell me how your dinner went”. Are they on a budget? One vendor says she watches for customers that reach into their pocket to check their change, as they may not have enough money to make a purchase; she's willing to offer a lower price.

Finally, talking about the weather or other issues with Mother Nature and your farm is not only a
great way to start a conversation, but it allows your customers to better appreciate the
connection between nature and farming. Hearing that your spinach crop is diminished because
of heat or the kale tastes sweeter because of an early frost helps to build a picture of your farm
in the customer's mind.

Build a customer email List - Send out a weekly email newsletter. Phrases like, “next week at
the market get the first greens of the season,” teach your customers about seasonality and
encourage customers to hold off on their weekly shopping until they can visit your table.


Learn to engage and disengage - Much as we like to chat with market customers, and it's the
social experience that makes the farmers' market a special place, it can hurt sales if other
would-be customers are intimidated into feeling that they're interrupting. Most customers
understand this, but some require a gentle nudge. If customers walk past your stall while you're
already busy with another customer, make brief eye contact and smile. You might tell them, “be
with you in a minute,” and point to a tray of samples. They'll be more likely to wait their turn than
to drift away. This also sends a tactful message to your current customer that someone else is
waiting.

Be friendly – People come to farmers' markets because they want to interact. Stand, don't sit,
keep your hands out of your pockets, smile, and say “thank you.” These are simple rules, but
they'll help to create a more welcoming atmosphere. Get a friend to take a candid picture of your stall so you can see how you appear interacting with customers.

Stay Off the Smartphone - Focus on your customers.

Guarantee your products – if a customer complains about a product, offer to replace it or to
give their money back.

Offer a discount – Reward frequent customers or big purchasers with an occasional extra. This
is another great way to create customer loyalty and it's a chance for them to try something new.

Provide a basket for customers to place your products into - Offer to hold the basket for
them. If they don't know how heavy it is, they're more likely to buy additional items!

Take emailed orders – Taking a customer's emailed order ahead of market day saves them
from getting to the market early and creates customer loyalty. If you're not able to show up on
market day be sure to call the customer so they can make alternate plans.

Be encouraging, not pushy - If a customer asks for a small package of an item, ask “Would
you like two?” If they're buying items for a salad, suggest complementary items that they haven't
tried. But don't badger customers who're just looking.

Dress the part – If you're selling farm produce, farm clothes are appropriate. But for some
value-add food products, customers may be more responsive if you dress the part. For example, if you're selling ready-to-eat food, consider wearing an apron or chef whites. Take a look at successful vendors who sell products similar to yours.

Be hygienic – This is especially important with recent food scares. In addition to the importance of adhering to applicable health regulations, take extra care to follow sensible hygienic practices. Your customers will appreciate it.

LEARN FROM OTHERS

Watch other successful vendors - including their dress, display and signage, how they
interact with customers, and their manners. Also, pay attention to any business that leaves you
with a good impression, including your mechanic, local bank teller or your favorite waiter.

Perhaps they're doing something you can adopt for your business.

ENGAGE YOUR TEAM

Get your colleagues to participate - Discuss what you all can do to create a better customer
experience. Role play. Ask them to share constructive criticism of your sales techniques and
table display.

So many new things to do! Start with just a few suggestions, and make them part of your
routine. By adopting a few new sales methods, your customers, new and old, will have a better
appreciation of your hard work and the superior value of your products.

I'd appreciate hearing any comments or feedback on these suggestions. I can be reached at
Peterm@torontogarlicfestival.ca.

Peter McClusky has worked as a farm intern, farmers' market manager, and market vendor, at various times selling pancakes, and vegetables and meat. He serves on the board of the Aberfoyle Farmers' Market. He grows heirloom garlic and manages the Toronto Garlic Festival. Prior to getting into farming and local food he ran the international sales department of a digital media company in NY.

Wednesday, November 17, 2010

Profit vs Altruism at the Farmers' Market

 A farmer friend of mine, let's call him Henry, has been selling lettuce mix at a price of $4 for an 8 ounce bag at a farmers' market in Toronto. On 20 bags his gross for the day is $80. Whole Circle Farm and another farmer I know charge $7 per 8 ounce bag. Another farm, The New Farm, charges almost double this price. Why is he charging such a low price?

Henry wants to provide some of his produce to customers who’re in a lower income bracket, hence the lower price. It fits with the philosophy of many farmers, that everyone should have access to healthy food. The challenge is, how to pursue this worthy objective and also get a fair price for their produce.  Henry claims that other vendors at his market also charge $4 per 8 ounce bag, making it difficult for him to change his price even if he wanted to.

This got me to thinking about what Henry or any market vendor could do to make sure they  fetch a fair price. Here are a few ideas:

  • Know Your Costs: The most important thing is to understand the cost to produce your products. Two good resources for this are "Organic Farmers Business Handbook, by Richard Wiswall. It explains how to do cost analysis. Another great book, Crop Planning for Organic Vegetable Growers, by Daniel Brisebois, explains how to break down production cost to bed foot per crop;
  • Set Price Based on The Value of Your Product: Don't necessarily set price solely on what other farmers or vendors at your market are charging or, on the price charged by supermarkets. Perhaps the other farmers are following each other's lead, a likely scenario, since many farmers are price followers and takers, not price makers.  Henry could consider discussing price with the other vendors. However, discussing price with your competition may be contrary to the Ontario Business Practices Act. So I can't officially encourage anyone to do that. Henry could simply point out to his fellow vendors that their market is priced well below other farmers’ markets;
  • Sell Your Products and Yourself: Do a good job of explaining to customers the value they are getting: organic, local, freshly harvested. Whatever it is, talk it up. Having good signage on your table is important. Giving away samples of your  vegetables is a good idea. Our Hakurai Turnip sold like cupcakes after customers had a sample from our market table.
Henry has the additional challenge of wanting to provide discounted lettuce for his lower income customers while at the same time charging a higher but fair price for the other customers.

An option for Henry would be to set a two tier price: If he brings 20 bags of lettuce mix to the market he could sell 15 bags x $7 bag = $105 gross. For low income customers he can offer them at a $3 discount. In other words, 5 bags at $4 each = $20. Henry’s gross for the day would be $125, $45 more than what he earns with his current pricing.

How would he know which customers to charge the $4 price?  He likely knows them, and can offer the discount to them. However, that could be tricky if nearby customers see that they’re not getting a discount. Another solution would be to charge $7 for all bags sold at the market, and at the end of the day, give away 5 bags through a food bank. Other deserving families will get lettuce, and Henry, bless his charitable heart, will have more revenue at the end of a long day at the market. On 15 bags at $7 each his gross would be $105, $25 more than he currently earns, and $550 more for the season.

Here’s a summary of some possible pricing scenarios Henry could follow while still being true to his philosophy of providing food for everyone regardless of their income:


Suggested Pricing Scenarios

Price Charged per bag of Lettuce (20 bags weighing 7 oz each)
Gross Sales per Week
Gross Sales Increase per Week over the Current Pricing
Total Gross Sales in a 22 week Season
Current Pricing
$4 each bag
$80
n/a

$1,760
Two Tier Price
15 bags x $7 ea  and 5 bags x $4 ea
$125
$45
$2,750
One Price
15 bags x $7 ea and 5 bags donated at end of the day
$105
$25
$2,310

 Whatever Henry does, it would be easier to implement any changes before the new season starts.