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Maryland Farmers Market Association ã2017 1
A FARMER’S GUIDE to
Selling at Farmers Markets
Maryland Farmers Market Association ã2017 2
TABLE OF CONTENTS
SECTION 1: ARE FARMERS MARKETS RIGHT FOR YOU? ..................................................................................................... 3 ComparisonofFourMarketingOutlets..............................................................................................4
SECTION 2: FINDING THE RIGHT FARMERS MARKET FOR YOU ................................................................................. 5 Beyondthesales:factorstoconsiderwhenselectingafarmersmarket...........................................5
WorksheetA:FindingtheRightFarmersMarket(IdentifyingPreferences).................................7Identifyingpotentialcostsassociatedwithsellingatfarmersmarkets.............................................8Estimatingpotentialrevenueatfarmersmarkets...........................................................................11
WorksheetB:FindingtheRightFarmersMarket(AnalyzingMarketCharacteristics)................13 Measuringsalessuccessatmarket..................................................................................................14
FarmersMarketTrackingSheet...................................................................................................14
SECTION 3: MAXIMIZING SALES AT THE FARMERS MARKET.......................................................................................15 Display..............................................................................................................................................15
Layout..........................................................................................................................................15Presentation................................................................................................................................16Signage........................................................................................................................................18CustomerService.........................................................................................................................19WorksheetA:StandingoutatMarket(DevelopingaGreatDisplay)..........................................21 WorksheetB:DesigningYourFarmersMarketStand.................................................................22
SECTION 4: SHARING YOUR FARM'S STORY ............................................................................................................................. 23 Establisharecognizablebrand........................................................................................................23Createanonlinepresence................................................................................................................23OnlinePlatformsataGlance...........................................................................................................24Engagingwiththemedia.................................................................................................................25
WorksheetA:IdentifyingYourFarm’sPromotionalPotential....................................................26
Maryland Farmers Market Association ã2017 3
SECTION 1: ARE FARMERS MARKETS RIGHT FOR YOU?
Farmersmarketsarejustoneoutletforfarmerstoselltheirproductdirectlytoconsumers.Howdoyoudecidethattheyaretherightoptionforyouandyourfarm?Althougheveryfarmersmarkethasitsowncultureandflavor,therearecertainconsistentaspectsofsellingatfarmersmarketsthatyoucancounton.Incontrasttootheroutletssuchaswholesale,farmersmarketsprovideanopportunitytomaximizetheamountofrevenuethatgodirectlytothefarmer;however,theycomewiththeirownsetofopportunities,challenges,andlogisticalconsiderations.Readontolearnmoreabouthowmarketswork,iftheyareagoodfitforyourfarmandbusinessmodel,andhowtomaximizeopportunitiesforsuccess.
Direct interaction
Customerinteractionisakeycomponentofsellingatfarmersmarkets.Manypeopleshopatfarmersmarketsbecausetheyenjoyconnectingwiththefarmersgrowingtheirfoodandcanbuydirectlyfromyou,theproducer.Youdon’thavetobegregarioustobesuccessful,butbasiccustomerserviceprinciplesareimportant.Asmilegoesalongway,andpatientresponsestoquestionswillserveyouwellinthelongrun.Noteveryonewhocomestoyourstandwillbepleasanttointeractwith;bepreparedtonavigatetheseinteractionsinawaythatdoesn’tnegativelyaffectyoursalesandyourbusiness.
Product marketing Amajorperkoffarmersmarketsisthatthemarketassumesresponsibilityforgettingcustomersthereonmarketday…butit’suptoyoutogetthemtobuyyourproduct.Howwillyoumakeyourproductstandoutfromtheothervendor’s?Signage,display,andproductplacement—discussedlaterinthisguide—arekeytosuccess.Whilestrongbrandingandmarketingarekey,it’simportanttonotethateachfarmersmarket’scustomerbaseisunique;you’llhavetotailoryourproductandsalesstrategyaccordingly.
Interdependence Farmersmarketsareanexerciseininterdependence:customersrelyonfarmerstoprovideproductofconsistentqualityonaregularbasis,andfarmersrelyoncustomerstomakerepeatpurchasesthroughoutthefarmersmarketseason.Shoppersbuyproductsfromsourcestheycantrust.Ifyoucandemonstratetheabilitytoprovidequalityproductanddosoonaweek-to-weekbasis,youwillbeonestepclosertodevelopingasteadyandreliablecustomerbase.
Photo credit: Port Towns Farmers Mercado
Maryland Farmers Market Association ã2017 4
Thechartbelowcomparescharacteristicsoffourmarketingoutlets:
FARMERS MARKET
SALES
COMMUNITY- SUPPORTED
AGRICULTURE SALES
DIRECT ON-FARM/
ONLINE SALES
WHOLESALE: RESTAURANT/ INSTITUTION
SALES
Directconnection/interactionwithcustomer
Highlevelofdirectinteractionbetweenfarmerandconsumer
Highlevelofdirectinteractionbetweenfarmerandconsumer
Highlevelofdirectinteractionbetweenfarmerandconsumer
Interactionisonlywithbuyer,notwithconsumer
SenseofcommunityHighpotentialtobuildcommunityoffarmersandconsumers
Highpotentialtobuildcommunityoffarmersandconsumers
Buildsacommunityofcustomersbut
customersarenotnecessarily
connectedwithoneanother
Lowpotentialtobuildsenseofcommunity
betweenfarmerandconsumer
Opportunitytobuildloyalcustomerbase
Highpotentialforrepeatcustomers
Highpotentialforrepeatcustomers
Highpotentialforrepeatcustomers
Highpotentialforrepeatcustomers
Guaranteedsales(viapre-soldoptionsorcontracts)
Noguaranteedsales
Structuredonpre-sales
Noguaranteedsales
Highpotentialforcontractedsales
Bulksales Lowlikelihood Sharesmimicbulkssales
Possible,butnottheemphasisofmarketoutlet
Institutionsoftenwantproductin
bulk
Outsideassistancewithpromotion
Marketsoftenpromote
themselves
Farmerdrivespromotion
Farmerdrivespromotion
Aggregatedistributors
typicallypromote
Outsideassistancewith“banking”services
Marketsoftenprovidecredit/debit/SNAPservices
Farmerresponsibleforfacilitatingpayments
Farmerresponsibleforfacilitatingpayments
Farmerresponsibleforfacilitatingpayments
Benefitsfrom“cooperativesales”structure
Multiplevendors=strongmarket
Farmeroperatesassolevendor
Farmeroperatesassolevendor
Possibleifusingaggregator
All-weathersales Salesareweatherdependent
Notweatherdependent
Notweatherdependent
Notweatherdependent
Year-roundmarketSomemarketsareyear-roundbut
mostareseasonal
Canhappenyear-round
Canhappenyear-round
Canhappenyear-round
On-site(minimaltravel)Farmersmust
traveltofarmersmarketsite
MostCSAshavebothon-andoff-farmdistribution
sites
Typicallyon-farm Farmersmustdeliver
Lowentrycosts Nobrick-and-mortartofinance
Nobrick-and-mortartofinance
Usuallyrequiresinvestmentin
infrastructureon-site
Largeinstitutionshavecertain
requirementsthatmayrequireinitial
investment
PricecontrolFarmerhashighlevelofcontroloverprices
Farmerhashighlevelofcontroloverprices
Farmerhashighlevelofcontroloverprices
Mostlycontrolledbyreseller’s
prices,althoughhigh-end
restaurantsoftenpaymorethanwholesaleoperations
Maryland Farmers Market Association ã2017 5
SECTION 2: FINDING THE RIGHT FARMERS MARKET FOR YOU Onceyou’vedecidedfarmersmarketsaretherightmarketingoptionforyou,howdoyougoaboutdecidingatwhichmarketstosell?It’slikelythatthelargest,oldest,and/ormostwell-establishedfarmersmarketshavewaitlistsforprospectivevendors,soitmightnotberealistictoexpectimmediateaccesstothesemarkets.Butdon’tworry:thereareoptions.Infact,onelookusingMDFMA’s‘FindaMarket’toolonourwebsite(http://www.marylandfma.org/find-a-market/)showcasesthewiderangeofmarketsthroughoutMaryland.Takethetimetofindthemarket(ormarkets)thatbestfityourneeds. Beyond the sales: factors to consider when selecting a farmers market
Eachfarmersmarketprovidesauniqueexperience.It’sthereforeimportanttofindamarketthatprovidesthetypeofexperiencethatmakesmarketdayfulfillingbeyondjusttheday’snetsales.Makeyourdecisiontosellatmarketawell-roundedone:findafarmersmarketwhereyouenjoysellingyourproduct.Askyourself:
Manymarketshaveaclearmissionandpurpose.Somefocussolelyonsupportinggrowers,whileothersaspiretoaddressfoodaccessissuesindisinvestedareas.Thesemissionsandpurposesmayinfluencewhoispermittedtosellatthemarket(‘produceronly’)orpotentialvolumeofsales.
Therelationshipsyoubuildwithmarketstaffandfellowvendorswilldefineyourexperienceatmarket.Takethetimetoseekmarketsthatprovideyouwithopportunitiestocultivaterelationships.Marketstaffingandgoverningbodiescaninfluencemarketculture;gettoknowwhorunsthemarket,whetherit’sstafforvolunteers.
Whatlengthortypeofcommutefeelsreasonableforyou?Areyouopentourbandrivingordoyoupreferamoreruralcommute?Wouldyouprefertoselltoyourneighbors,orareyoumoreinterestedinbringingyourgoodstoothercommunities?
ADVICE FROM THE FIELD
“Pay your dues. Start at smaller markets and make a reputation for yourself. Let the markets get to know you. Let the other farmers get to know you.”
Jack Gurley Calvert’s Gift Farm
Isthemarketmissioncompatiblewithmyfarm’smissionandpurpose?
DoIfeelwelcomeandcomfortable
atmarket?
Doesthemarketlocationwork
forme?
Maryland Farmers Market Association ã2017 6
Yourtimeisvaluable,sotrytothinkstrategically:selectfarmersmarketsthatallowyoutomaximizeyourtimeoff-farm.Adistantmid-daymarketmeansyouareunlikelytogetmuchdoneon-farm,butschedulingtwodistantmarketsonthesamedaycanmakethoselongermarkettripsmoreefficientandworthwhile.
Alsoconsideryourharvestschedule:doesitmakemoresensetoscheduleallofyourmarketsinablockof1-2dayseachweeksoyoucanreduceharvesttime?Doyouhavespacetostorelargerharvests,orareyouharvestingintocoolersanddrivingdirectlytomarket?Doesyourfarmyieldenoughtosupplymultiplemarketsback-to-backdays?
Andthenthinkbiggerpicture:howmanyweeksdoyouwanttospendatmarket?SomemarketsendinSeptemberwhileothersstretchwellintoNovember,andafewevengoyear-round.Doesyourcropplanaccommodatealonger-seasonmarket?Areyourproductsthetypethatmightbeparticularlylucrativeduringaparticulartimeofyear(turkeys,greens,sweetpotatoes,etc.)?
Howwelldoesthismarketfitintomydaily,weekly,andseasonalschedules?
SECTION2:WORKSHEETA
FINDING THE RIGHT FARMERS MARKET: IDENTIFYING PREFERENCES Usethisworksheettoanalyzehowwellafarmersmarketmeetsyourgoalsandpreferences.
Maryland Farmers Market Association ã2017 7
YOURGOALS
Usethissectiontocapturewhatyouwanttogetoutofsellingatfarmersmarkets.Forexample:whileprofitislikelyyourtopobjective,whatareyourothergoalsandpriorities,ifany?Areyoucommittedtosellinginyourowncommunity?Inareaswhereaccesstofresh,localfoodiscompromised?Whatisimportanttoyou?
Listyourgoalshere:
MARKETPREFERENCES
Usethissectiontoidentifyspecificcharacteristicsyouarelookingforinafarmersmarket.Doesyourfarm/businesshaveamissionthatmayinfluenceyourmarketchoice?Whatlocationsworkbestforyou?Whatareyoursalesgoals?Thinkthroughwhichofthesemarketcharacteristicsaremostimportanttoyouperthegoalsyou’veidentifiedinthesectionabove.
MarketmissionDoyouprefertosellatafarmersmarketwithaspecificmission?
Marketmanagement/cultureWhattypeofmanagementstyledoyouprefertoworkwith?Whataboutmarketculture?
MarketlocationIsaspecificlocationmoredesirablethanothers–urban/rural,affluentorunderservedpopulations,etc.?
TraveldistanceHowfarareyouwillingtotraveltomarketeachweek?
Day(s)ofweekWhatdayscanyoutobeatmarket?
Time(s)ofdayWhattimeduringthedaycanyoubeatmarket?
Marketseasonduration(#ofweeks)Whatseasonlengthworksbestforyouandyourharvestcalendar?
Targetnetsales(forallmarkets)Howmuchdoyouneedtonettobesuccessfulsellingatfarmersmarkets?
Maryland Farmers Market Association ã2017 8
Aswithanymarketingoutlet,thegoalwhensellingatafarmersmarketistowalkawayhavingmademorethanwhatitcostyoutosellthere.Thissectionprovidesanoverviewofthecoststhatmayaccompanysellingatfarmersmarkets.Onceyouassesstheinputsrequired,you’llbebetterabletofigureouthowmuchrevenueyou’llneedtobringintomakethismarketworthwhilefromafinancialperspective. Identifying potential costs associated with selling at farmers markets
Permits&LicensesSellingatanyMarylandfarmersmarketrequirescompliancewithbothstateandcounty/cityregulations.Mostofthesepermitsandlicensescomeatacostandrequirerenewalfromyeartoyear.Besuretofactorinthesecosts.Regulationsvarybycounty.VisittheMDFMAwebsite(checkunderthe‘Resources’tabforalinktoapagetitled‘Regulations’)foracompletelistofallpermittingandlicensingrequirementsthroughoutthestate:http://www.marylandfma.org/resources/regulations/
Somequicktips:o Sellingfresh,“uncut”fruits&vegetablestypicallydoesn’trequirea
specialpermit…
o …butprovidingsamplesoffreshfruits&vegetablesdoesusuallyrequireapermitfromthelocalhealthdepartment.
o Theneedforapermittosellvalue-addedgoods(i.e.cannedgoods,
fermentedproducts,bakedgoods)isdeterminedbytypeofitem(whethertheHealthDepartmentconsidersita“potentiallyhazardousproduct”)aswellasthatitem’stotalannualsales.
o SellingmeatatafarmersmarketusuallyrequiresaMobileFarmers
Marketpermitorlicense,inadditiontoinspectionfees.
o Ifyouhavequestions,contactyourlocalAgriculturalMarketingProfessional(AMP).Tofindanexpertnearesttoyou,usethe‘Regulations’linkaboveforalistofMarylandAMPsandtheircontactinformation.
o STARTEARLY!Don’twaituntilthelastminutetogetyourpermits
andlicensesinorder–itcantakeuptoafewmonthstoprocessyourapplicationsandnothavingpermitssecuredcanjeopardizeyourmarketseason.
Maryland Farmers Market Association ã2017 9
VendorAgreements
Maryland’sfarmersmarketsvary,andsotoodotheirvendoragreements.Thevendoragreementcantellyoualotaboutthemarket’scapacityandwhatyou,asavendor,canexpectfromthemarketmanagement.Agreementsshouldbewrittenandformattedsoastoveryclearlyoutlineanyparticipationfeesandexpectationsofvendors.
Thefollowinglistillustratesthepotentialcoststosellataparticularfarmersmarket:
o Stallfees:Mostmarketschargevendorstosellatthemarkettohelpcoveroperationalcosts.Thismaybeaone-timeflatfeeupfront;othersrequirevendorstopayapercentageoftheirtotalsales.Besuretofactorinthiscost.
o Attendancepolicy:Mostmarketshaveamaximumnumberofmarketdaysyouarepermittedtomisswithoutincurringpenalties.Somemarketsreimburseadeposittovendorsiftheyadheretoattendancepolicies,whileothersissuefinesafteracertainnumberofmissedmarketdays.Knowwhatyouareagreeingtoandhownon-adherencetothemarket’spolicymightaffectyourbottomline.
o Commitment:Thenumbersofhoursthemarketisopeneachdayandthelengthofthemarketseasonaffectnotonlyyourprojectedsalesbutalsoyourstaffingand
travelexpenses.Besuretofactormarkettosetupbeforeandbreakdownaftermarketinyourtotalhourscalculations.
o Paymentschedules:Althoughmanycustomerspaywithcash,marketsmayalsooperatetokensystemstoallowcustomerstousedebit,credit,andtheSupplementalNutritionAssistanceProgram(SNAP,alsoreferredtoElectronicBenefitsTransferorEBT).Acceptingmarkettokenscanincreaseyoursales(note:somemarketstakeapercentageofthesesalestooffsetthecostoftheservicetheyareproviding).Tokenreimbursementmayoccuronaweekly,bi-weekly,ormonthlybasisdependingonthemarket.
Alsokeepinmindthatmanymarketsdon’tprovidesamedayreimbursementfortokensalesthedayof.Knowhowlongitmightbebeforeyouwillbereimbursedforthesesalesandunderstandhowitwillaffectyourfarm’scashflow.
Attendancepolicieshelpmarketsensureaconsistentproductline-upforshoppers.Nobodywantstoshopatamarketifthere’suncertaintyastowhetherthevendorsshowupornot!
Doyouhaveenoughproducttosellallseasonlong?Ifyouplanonusinghighschoolorcollegestudentsduringthesummermonths,howwillyoustaffyourmarketiftheyreturntoschoolbeforethemarketseasonisover?
Maryland Farmers Market Association ã2017 10
OperatingCostsIt’simportanttounderstandthevariouscostsofsellingthroughfarmersmarkets.Thesecaninclude:
o Staffwages:Calculatehowmuchitwillcosttosendyourstafftomarketeachweekandplanondeductingthisfromyoursales.Evenifit’sjustyougoingtomarket,don’tforgettofactorinyourhourlywage—yourtimeisvaluable.
o Travel:Atminimum,you’llpayforthegastogettoandfrommarketeachweek.Alsofactorinthecostsofwearandtearonyourmarketvehicle–whichmayleadtorepairslater—andwhetheryou’llhavetopurchaseanadditionalvehicletomakethosetrips.Includethesecostsinyourexpenses.
o Supplies:You’llneedtoreplenishyour
stockofmarketingsupplieslikeshoppingbagsandpackingcontainers(i.e.pintboxesforcherrytomatoesorproducebags)throughouttheseason.
o Equipment:Whatwillyouneedweekafterweekatthemarkettomakeyourstanda
success?Astandardlistincludes:
• Tents(insomecountiestentsmust meetcertainrequirements;seeour regulationsinformationonlineto confirmifthisisthecasewhereyou willbeselling)• Tentweights• Tables• Tablecloths• Displaycontainers(nicebasketsorcrates,
forexample)• Signage• Producescaleifyousellbythepound• Cashboxthatcanbesecured• Moneyaprons/beltsforstaff• Electronicpaymentprocessingequipment
ifyouplantoacceptdebit,credit,orSNAP/EBT independentlyofthemarket.
Checkoutthistripcalculatortool:https://www.fueleconomy.gov/trip/AAAestimatedthatin2016,theaveragecostfordrivingavehicle(includinggas,maintenance,etc.)fellbetween$.060-$0.70permiledriven.Dependingonthetypeofvehicleusedformarkettransportation,thiscostmightbehigher.
Besuretothoroughlyanalyzeallcontractsforpaymentprocessingequipment.Allplanshaveassociatedusagefeestoconsider;pickaplanthatmakesthemostsenseforyoursalesstrategyandthetypeofmarketwhereyou’reselling.Manyequipmentcostsareone-timeexpensesandmayonlyaffectplanningforfirst-timemarketfarmersorasreplacementcosts.
Maryland Farmers Market Association ã2017 11
Estimating potential revenue at farmers markets Salesatafarmersmarketareinfluencedbymanyfactors,someofwhichareoutsideofyourdirectcontrol.Ifyouhavespecificexpectationsforrevenuefromaselectfarmersmarket,takeamomenttofindoutasmuchasyoucanaboutthemarkettoassessifitcanmeetyourneeds.Ifyoucan,visitthemarketandgetafeelforthecustomerbase.Haveaconversationwiththemarketmanager,andcheckoutthemarket’swebsite,socialmedia,andotherformsofmarketing.
Howmanyvendorsarethere,andwhatisthevendorretentionrate?
Whatarevendors’averagesales?
Howisthemarketpromotedtothepublic?
Whatistheaverageattendancepermarketday?
vs.Whatotherservicesdoesthemarketprovide?
Whataretheothervendorsselling?Istherespaceforyourproduct?
Howlonghasthemarketbeeninoperation?
SECTION2:WORKSHEETB
FINDING THE RIGHT FARMERS MARKET: ANALYZING MARKET CHARACTERISTICS
UsethisworksheettoidentifyspecificcharacteristicsofpotentialfarmersmarketsandhowtheyrelatetothegoalsandpreferencesyouidentifiedinWorksheet2A,payingspecialattentiontothoseyouidentifiedasparticularlyimportanttoyou.Remember:It’sunlikelyanymarketwillmatchperfectlywithallofyourpreferences,butthinkofthisworksheetisa
toolyoucanusetolookcomprehensivelyatwhateachmarkethastooffer.
Maryland Farmers Market Association ã2017 12
MARKETNAME:______________________________________________
MarketavailabilityIsthismarketacceptingnewvendorssellingyourtypeofproduct?
MarketmissionDoesthismarketalignwithyourfarminggoalsandvision?
MarketmanagementWhorunsthismarketandhowdotheyrunit?Doesthisfitwithyourexpectationsofmarketmanagement?
MarketcultureWhatsocialcodeisinplaceatthemarket?Howdoeseveryoneinteractwithoneanother?Doyoufeelcomfortableandsupportedinthistypeofsocialenvironment?
ServicesprovidedPaymentpaymentprocessing(debit,credit,SNAP/EBT)
Isthisanassetforyou?Doesthepayoutschedulefityourneeds?
Promotion&outreachDoesthemarketprovideanadequatelevelofpromotionandmarketingonbehalfofitsvendors?
Productspecifications(producer-onlyvs.resellingpermitted)Dothesespecificationsbenefityouasavendor?
Vendorresponsibilities(i.e.vendorsmustreportsalesdataweekly/monthly/seasonally,orturnintokensforreimbursement,etc.)Areyouabletofulfilltheseresponsibilities?
SECTION2:WORKSHEETB
FINDING THE RIGHT FARMERS MARKET: ANALYZING MARKET CHARACTERISTICS
UsethisworksheettoidentifyspecificcharacteristicsofpotentialfarmersmarketsandhowtheyrelatetothegoalsandpreferencesyouidentifiedinWorksheet2A,payingspecialattentiontothoseyouidentifiedasparticularlyimportanttoyou.Remember:It’sunlikelyanymarketwillmatchperfectlywithallofyourpreferences,butthinkofthisworksheetisa
toolyoucanusetolookcomprehensivelyatwhateachmarkethastooffer.
Maryland Farmers Market Association ã2017 13
LocationIfyouhaveaspecificvisioninmindforwhereyou’dliketosell(i.e.urbanv.rural),howdoesthislocationcoincidewiththisvision?
DistancefromfarmHowdoesthisscopeoftravelimpactyourworkplan?
Dayoftheweek/timeofdayHowdoesthisimpactyourworkplan?
Opening&closingdatesHowdoesthistimeframecorrelatewithyourplantingandharvestingschedule?Willyouhaveproductatthebeginning/endoftheseason?
NumberofweeksinmarketseasonHowdoesthistimeframeaffectyouropportunitytomarketandsellyourproduct?Doyouhaveenoughproduct/staffingtosellatmarketforthefullseason?
YearsinoperationHowdoesthisinfluencecustomerbaseandpotentialsales?What‘returnoninvestment’doyouforeseefromjoiningayoungmarket?
AveragesalesforvendorssellingsimilarproductWhatcanyouexpectinsalesatthismarket?
AveragesalesforvendorssellingdissimilarproductIstherepotentialforyourproducttosellwellwiththeestablishedcustomerbase?
Numberoftotalvendors/numberofvendorswithsimilarproducts?Howwillthisimpactyourpotentialsales?
AverageweeklyattendanceHowwillthisimpactyourpotentialsales?
Maryland Farmers Market Association ã2017 14
Measuring sales success at market Goodrecordkeepingisessentialinallbusiness.Trackinginputsandoutputsthroughouttheseasonallowsyoutoassessyourlevelofsalessuccessatthemarket.Acashflowbudgetsheetworkswellforthispurpose:Thefollowingisanexampleofhowyoucouldtrackearnedrevenueagainstincurredexpensesatmarket.
FARMERS MARKET TRACKING SHEET[FarmersMarketName] Explanation Week1
[date]WeekX[date(s)]
1 MARKETINCOME2 Marketsales Totalsales 3 TotalMarketIncome =Row2 4 MARKETEXPENSES5 CostofGoodsSold(COGS)orVariableCosts6 LaborCosts7 Staffwages #ofhoursxhourlywage 8 Payrolltaxes Taxespaidforpayroll 9 Benefitscost–i.e.healthcare,etc. Costsforstaffbenefits 10 Other Othercostsrelatedtostaffing 11 TotalLaborCosts =Rows7+8+9+10 12 SupplyCosts13 Packagingmaterials Costsforrubberbands,clamshells… 14 Displaymaterials Costsforsigns,crates,baskets… 15 TotalSupplyCosts =Rows13+14 16 TransportationCosts–i.e.fuel(www.fueleconomy.gov/trip/)17 TotalTransportationCosts Costofgas 18 COGSorTotalVariableCosts =Rows11+15+17 19 GROSSPROFIT =Row2–Row18 20 GROSSPROFITMARGIN% =(Row19/Row3)*100 21 OverheadorFixedExpenses22 Vendorfees =totalmarketfee/#ofmarketweeks 23 Insurance =totalcost/#mktscovered/#mktwks 24 Permits&Licenses =totalcost/#mktscovered/#mktwks 25 VehicleMaintenance&Repairs =totalcost/#mktsincluded/#mkt
wks
26 Equipment–i.e.marketscale =totalcost/#mktscovered/#mktwks 27 Materials–i.e.aprons,cashbox,etc. =totalcost/#mktscovered/#mktwks 28 Marketing–i.e.newslettersign-up,sheets,flyers,etc. =totalcost/#mktscovered/#mktwks 29 OwnerDraw =%timededicatedtomks/52wks 30 TotalFixedExpenses =Rows22+23+24+25+26+27+28+29 31 NETPROFIT =Row20–Row30 32 NETPROFITMARGIN(%) =(Row15/Row3)*100
Maryland Farmers Market Association ã2017 15
SECTION 3: MAXIMIZING SALES AT THE FARMERS MARKET Themarketmayberesponsibleforgettingcustomerstoshowupinthefirstplace,butit’suptoyouasamarketvendortotransitionmarketvisitorsintoloyalmarketcustomers.Thecustomerexperienceyoucultivateatyourstandhelpsdefinethecustomer’sexperienceatthemarketasawhole.Belowareafewtipsonhowtocreatethetypeofcustomerexperiencethatresultsinsales.
Display Agoodproductdisplayisfundamentaltoyoursuccessatafarmersmarket.Createanattractive,enticingvisualpresentationtodrawandwelcomecustomerstoyourstand.Useyourdisplaytohighlightspecificproducts.Configureyourset-uptomakeiteasyforcustomerstoseeandaccessyourproduct.LayoutFlow:Makeiteasyforcustomerstoknowhowtomoveinandaroundyourspace.Astandwherecustomersfeelcrowdedanduncomfortableorareunabletoreachyoutoaskquestionsorexchangepaymentcandiscourageshoppers.Access:Ensurethatbothyouandthecustomerareabletoeasilyseeandhandle
yourproducts.Customerswanttofeelwelcometomaketheirpurchases,andyoumustbeabletoreorganizeandreplenishasneededthroughoutthemarketday.Think‘kneestoshoulders’whenbuildingyourdisplaysofolksdon’thavetoreachtoohighorbendtoolowtogetwhattheywant.Protection:Farmersmarketsareoutsideaffairs,andit’slikelythatatseveralpointsthroughouttheseasonbothyourcustomersandyourproductswillbenefitfrombeingshelteredfromtheelements.Makeyourstandarefugefromtheelementsasbestyoucan.Everyonewillbehappierforit!
Maryland Farmers Market Association ã2017 16
Space:Besuretoleavesomeemptyspacenearwhereyouacceptpaymentsocustomerscanresttheirselectedproductastheymaketheirpurchase.Otherwise,acustomermightfeelinclinedtoputtheirfivepoundsofsweetpotatoesontopofyourdelicatecherrytomatoes.
PresentationColor:Capitalizeonyourfield’srainbowqualities!Usethatnaturalpalettetocreateatapestryofcontrastingcolors-makeyourproduce“pop”.Tryputtingyourbrightestcolorsclosesttotheaisletomakesureeveryonepassingbyseesyourstand.Thisgoesfortheinediblepartsofyourdisplay,too:usecleantableclothsthatcomplementyourproductandgivethetableatidy,freshlook.Shape,size,&texture:Adisplayofdifferentsizes,shapes,andtexturescanbejustastantalizingascolor.Playwiththenaturalcontrastsamongyourproducttomakeyourdisplayfeelalive.
Variety:Youdon’thavetogroweverythingoncustomers’shoppinglists,buthavingavarietyofproductswillconvinceashopperyouaremorelikelytohavewhattheyarelookingfor.Varietyprovidesyouwithaplethoraofcolors,shapes,sizes,andtexturestoplaywithatyourstand.
Maryland Farmers Market Association ã2017 17
Bounty:Customerswanttofeelasiftheyhavechoice.Keepyourstandfull–toomuchemptyspacesuggestsyoumightnothavewhatthecustomerislookingfor.Thisrequiresyoutoeffectivelymanageyourdisplaythroughoutthedayasyoursupplyisdepleted.Replenishreadilyandconsolidateyourdisplayasthedaywearson.Layering:Useheightandvariousdisplaycontainers
(baskets,crates,shelves)tocreatedifferentlevelsofdisplaythatengagetheeye.Doingsocancreatemorespaceforyourproductorsuggestbountywithouttheneedtopileradishesskyhigh.Grouping:Placeproductsinintentionalgroupstohelpthecustomernavigateyourstand.Groupingbypricemakesiteasierforcustomerstoplantheirpurchase,whilegroupingbyfamily(i.e.‘roots’)canmakeiteasierforthecustomertofindwhatthey’relookingfor.Quality:Customersexpectqualityproductspresentedtotheminaqualitymanner.Taketimetocleanyourproduce,trim,andpackageneatly,whetherinbunches,clamshells,boxes,orbags.Learnthebestwaytokeepyourproductfresh.Forexample,useaspraybottleongreensinthesummerheatorkeepthemcoveredtoprotectfromicywinterair.
Keepherbbunchesinbucketsorwatertokeepthemfromwilting.Usedampclothstokeepbunchesofradishesorturnipsfromdryingoutastheywaittheirturnforthedisplaytable.Cleanliness:Keepyourstandclean.Cleantablecoversanddisplaycontainerstellyourcustomersyoutakecareofyourfarmandyourproduce.
Maryland Farmers Market Association ã2017 18
SignageInformation:Makeiteasyforcustomerstofindoutwhoyouare(clearlydisplayyourfarmname),whereyouarelocated,andthetypesandcostsofproductsyousell.Letcustomersknowifyouparticipateincertainprograms,especiallyiftheprogram,suchastheFarmersMarketNutritionProgram(FMNP),requiresyoutodoso!Listingcertifications,websiteinformation,orsocialmediahandlesareallgreatwaystocommunicatewhoyouaretoyourcustomers.Language:Yoursignsshouldbeaswelcomingandfriendlyaspossible.Forexample,“Cashonly,please”ismuchmoreinvitingthan“Nocreditordebit.”Similarly,ifyouacceptcertainpayments,thinkaboutusinglanguagesuchas“WeWelcomeSNAP”asopposedto“WeAcceptSNAP.”Knowwhatlanguageyourcustomersspeakandincludetheselanguagesonyoursignage,ifpossible.Thesecustomerswillfeelmorecomfortableatyourstand.Personality:Goodsignagepresentsachancetogetacustomer’sattentionbyusingeye-grabbingcolorcombinations.Italsoprovidesanopportunitytoconveyyourbrandandletthecustomergettoknowyou.Usingphotosofyouandyourfarmcanhelpcustomersgetasenseofwhoyouareandthetypeofagricultureyouengagein.Functionality:Don’tletyoursignsgetintheway.Makesuretheyworkforyouandfor
yourcustomers.Chalkboardscanbewhimsical,buttheycanbehardtostandupandsmudgeeasily.Whiteboardsarefunctionalbutcanfeelinstitutionalifnotdonewell.A-frames(above)arethesturdiestoptionbutneedmorespacethansomethingyoucanhangorpropagainstyourstand.Thereareprosandconstoeachtype,sodoyourresearchandfindasolutionthatworksforyou.
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Consistency:Productandpricinglabelsareessentialsignage.Justremembertobeconsistent.Labeleverythinginthesamestyleoflabels.Makethemfun,butmakethemlegible.Education:Signscanbeextremelyusefulinhelpingcustomersunderstandwhatyouaresellingandhowtocookwithit.Signscanalsobetheperfectwaytoaddpromotionalinformationthataddvalueandintriguetoyourproduct.Forexample,asignreading‘pickedfresh’mightseemobvioustoyou,butitwillreassureyourcustomers.Similarly,signageexplainingthedifferentflavorsofyourtenvarietiesofheirloomtomatoeswillhelpcustomerspicktherighttomatoforthem.Remembertoincludethename,too,socustomerscanfindthatvarietyagainiftheyreallylikedit!CustomerServiceYoursuccesssellingatfarmersmarketsreliesonyourabilitytocreaterelationships,nomatterhowbriefandcircumstantial.Customersshouldfeelwelcomeandappreciatedforhavingspentmoneyonyourproduct.Establishingrapportwithyourcustomerscanhelpyoubuildastrongbaseofloyalcustomersandguaranteedsales,evenwhentheweatherisbad.
Beinviting:Adoptawelcomingstanceatyourmarketstandandrememberthatagreetingandasmilegoalongway.Letyourcustomersknowyouenjoyinteractingwiththem–evenifthatinteractionisthesameinteractionyou’vehadwith50otherpeoplethatday.Wearcleanclothesandhandleproduceandmoneywithcleanhands–ifyouaren’tclean,thencustomersmightgettheimpressionyourproductisn’teither!
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Knowyourmessaging:Planhowyouwanttotellyourfarm’sstory.Beconsistentandknowwhatyouwantyourcustomerstotakeawayfromyourconversation.Knowyourproduct:Besurethatyouandyourmarketstaffcanansweranyquestionsaboutyourproductthatcustomersmayask–howit’sgrown,whenitwasharvested,whatitcosts,howtocookwithit,whatittasteslike,etc.Knowyourcustomer:Taketimetounderstandwhatyourcustomersarelookingfor.Notwomarketsarethesame,andyoumightneedtoadjustyourmessaging,display,orsignagetoconnectwithaparticularcustomerbase.Listentoyourcustomer:Relationshipsarerarelyone-sided:ensurethatyourcustomersfeelappreciatedbylisteningtotheirstoriesandtryingtoaccommodatetheirrequests,withinreason.
Behelpful:Providinghandoutsonhowtogetthemostoutofyourproduct–storagetips,instructionsonhowtocookit,recipesuggestions–canbevaluablewaystoenhanceacustomer’sexperienceatyourstand.Trainyourstaff:Ifyouaresuccessfulatmarket,youwon’thavetimetopersonallytendtoeverycustomer.Makesureeveryoneworkingatyourstandisabletoprovidequality,appropriatecustomerservice.
SamplingEngagingthesensesiskeywhenattractingcustomers;samplingallowscustomerstotasteexactlywhatyou’reselling.However,besuretogetthenecessarypermitstoshareacut-upversionofyourproductatthemarket.VisittheMDFMAwebsite[http://www.marylandfma.org/resources/regulations/]foracompletelistofpermitregulationsbycounty.
SECTION3:WORKSHEETA
STANDING OUT AT MARKET: DEVELOPING A GREAT DISPLAY Usethisworksheettobrainstormwhichelementsyou’llhavetoworkwithwhencreatingyourdisplay.
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First,figureoutwhatyouhavetodisplay.Whatproductswillyoubringtomarket?Then,considerwhentheproductwillbeondisplayatmarket.Usethisinformationtohelpyoufigureouthowtoadjustyourdisplaycontainersfromweektoweek.Whatmethodisbestfordisplayingthisproduct:willthisproductdobestincontainers,sittingdirectlyontableorinlargetraysonthetable,orinbinsbelowtable?Ifyouwanttousecontainers,whattypeofcontainerswillworkbest:baskets,quarts,crates,etc.?Thinkaboutthisintermsofwhatyouareselling.Howdoesthiscomplementotherproductsandhowtheyaredisplayed?
Next,whatotherdisplayelementswillyouneedtosetupyourstandatmarket,andhowwilltheycomplementoneanother?Howmanytableswillyoubeusing,andwhataretheirdimensions?Howwillyoucoverthesetables?Doyouhavewaystocreateshelvesforalayeredeffect?Howwillyoudisplayyourfarmname?Howwillyoudisplayproductprices?Willyouhaveinformationaboutyourfarmorrecipestogiveawayatyourstand?Howareyougoingtodisplaythesegiveaways?
Product Seasonality Displaymethod
Tables,shelving,andcoverings
Signage Giveaways
SECTION3:WORKSHEETBDESIGNING YOUR FARMERS MARKET STAND
Usethisworksheettosketchoutapotentialmarketstandlayoutthatwillworkforyouandyourproduct.
Maryland Farmers Market Association ã2017 22
Usethegridbelowtosketchthelayoutofyourstand(eachsquareinthegridrepresentsonesquarefoot).Consider:
o TRAFFICFLOW:Howwillcustomersmovethroughyourstand?Wherewilltheypay?Wherewillyoubestanding?
o ACCESS:Howcanyouensurebothyouandyourcustomerscanreachproduct?o PRESENTATION:Whatproductswillyouhave?Howcanyoutakeadvantageofthe
differentcolors,shapes,sizes,textures,displaycontainers,etc.?
Maryland Farmers Market Association ã2017 23
SECTION 4: SHARING YOUR FARM’S STORY Farmersmarketcustomersarelookingforqualityproduct,buttheyareoftenalsolookingforasenseofconnectionwiththefarmerwhogrewtheirfood.Theywanttoknowwhoyouare,whereyourfarmislocated,howyougrowyourproduce,howyoucareforyourlivestock,etc.Theyarelookingforyoutodistinguishyourselfandyourproductfromwhattheyfindinthesupermarket…andfromeveryotherproducersellingatthefarmersmarket.Therearemanywaysyoucanconveythismessage,andtherearemultipleoutletstousetocarrythismessagebeyondjustthefarmersmarket.Establish a recognizable brand
Asuccessfulbrandisasmuchaboutaphysical,recognizablelogoasitisaboutwhatpeopleunderstandyourlogotorepresent.Ifyoualreadyusealogo(orevenjustafarmname),thinkabouthowyoucanincreasethevisibilityofyourlogoandfarmname.Ifyouarecreatingalogo,startwithidentifyingwhatitisyouwantcustomerstoknowaboutandexpectofyourproduct.Beyondyourlogo,picturesofyouandyourfarmcanhelpgivelifetoyourbrand,puttingafacetothenameandhelpingmarketcustomersputapersonaltouchonthosegrowingtheirfood.Bannerscanbeagreatwaytodisplayphotosand/oryourfarmnameandlogo.
Create an online presence
Makeiteasyforcustomerstofindmoreaboutyouwhentheylookonline.Manyfreeonlinelistingsexist(someofwhicharelistedbelow)andareaneasywaytobothincreasethevisibilityofyourfarmandtodrivecustomerstoothermarketingoutlets,suchasyourwebsiteandsocialmedia.Thefollowingcharthighlightstheprosandconsofeachplatform.
Maryland’sBesthttp://www.marylandsbest.net/
AmazingGrazingDirectoryhttps://www.futureharvestcasa.org/resources/amazing-grazing-directory-0
OrganicIntegrityDatabasehttps://organic.ams.usda.gov/integrity/
CertifiedNaturallyGrownhttp://www.cngfarming.org/
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ONLINE PLATFORMS AT A GLANCE
Platform Who’s my audience? How do I use this platform effectively?
What are some advantages to using
this platform?
What are some limitations to using
this platform?
‘older’audience:o 65%ofusersare35andolder
o highestusageamongages45-54
equallypopularinurbanandruralareasevenlysplitbetweenmale/femaleusers
updateregularlywithfreshcontent‘tag’otherusers&‘share’poststobroadenreachmixitup:usedifferentmediatoengagewithyouraudience
multimediacapacity:photos,videos,links,textselldirectlythroughplatformcreateevents‘Insights’helpassesswhatdoesanddoesn’twork
limitedvisibility;requiresdedicationtobuildanaudiencehardtoconvertuserstoutilizeotherplatformslotsofcompetition
‘younger’audience:o mostusersare35andunder
morepopularinurbanareasthaninruralareasmorepopularwithwomenthanmen
usephotostotellyourstoryusehashtagstoconnectandpromotecontent
greatforillustratingyourfarm’saestheticsandgoings-onfilterstoaddartisticqualitytophotoscancross-postwithotherplatforms
photographyskillsamustdependentonphotostotellyourstory
‘younger’audience:o highestusageamongages18-29
morepopularinurbanareasthaninruralareasevenlysplitbetweenmale/femaleusers
usehashtagstoconnectandpromotecontentbeconversational,butkeepitshortandsweetsharewhat’shappening‘rightnow,’anddoitoftentakeadvantageorurl-shortenerstosavespace
easytoupdatefast-pacedandlivelyeasytoconveypersonality
requiresconstantmonitoringandupdatinglimitedcharacters(140)
‘allages’platform:o equallypopularamongages18-29and30-49
morepopularinurbanareasthaninruralareasmorepopularwithwomenthanmen
greatforsharingrecipeslinktootherplatforms(website)rePinrelatedcontent
easytoupdateeasytoconveyfarmvaluesand‘wayoflife’
cannotcurrentlyselldirectlythroughplatformlimitedopportunitiesforengagementandstorytelling
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ONLINE PLATFORMS AT A GLANCE (continued)
Platform Who’s my audience? How do I use this platform effectively?
What are some advantages to using
this platform?
What are some limitations to using
this platform?
Website
‘allaccess’platform:nostrongpreferencebyanyidentifiedage,gender,orgeography
useimageryandcolorstomakesitevisuallyappealingcreateauser-friendlysitethatiseasytonavigatehighlightimportantinfo
canselldirectlyfromplatformfairlystatic:updateasneeded
highlevelofinactivitymakeswebsitesineffectivepromotiontools
Blog
‘allaccess’platformslightlymorepopularwithagesunder35
tellyourstorycreatepersonable,identifiablevoice(s)
easytosharenewcontentandinformationeasytosharemultipleperspectives
timestampallowscontenttoeasilybeidentifiedas‘outdated’requirestimetoplanandcreatecontent
Adaptedfrom:http://www.meyerfoundation.org/sites/default/files/files/SWT-Platform-Comparison-090414.pdf
Engaging with the media Capitalizingonlocalmedia(newspapers,magazines,localtelevisionand/orradio)canbeanothergreatwaytoincreasevisibilityofyourfarm.Consider,though,thatwhenyourelyonanoutsidertotellyourstory,theymighthaveadifferentideathanyouabouttheimportantpiecestohighlight.Itmaybehelpfultoprepareinadvanceby:
Researchingthepublication/broadcaster.Gettoknowwhatkindofstoriestheypursueandhowtheypresentthesestoriestothepublic.Focusingonyourstrengths.Ifyouarecamerashy,thenthinkcreativelyaboutamorecomfortablemediaoutlet,suchasprintorradio.Remainingtruetoyourbrand.Thinkaboutthestoriesthatbestportraywhoyouareandwhatyourproductis–thesearethebeststoriestoshare.Findingallies.Seekoutindividualsandorganizationspositionedtohelpgetyourstoryintothepubliceye.
SECTION4:WORKSHEETAIDENTIFYING YOUR FARM’S PROMOTIONAL POTENTIAL Usethisworksheettodevelopyourfarm’sstoryandhowtoshareit.
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Usethequestionsbelowtohelppinpointwhatyouwanttosharewiththepublic.
1.Whatisimportantforcustomerstoknowaboutyou,yourfarm,yourproduct,yourgrowingmethods,whereyousell,etc.?
2.Whatmakesyouandyourfarmuniqueand/orspecial?3.Whatmakesyourproductuniqueandspecial?Whyshouldsomeonebuyfromyou?Whatmakesyourproductworththeirmoney?
4.WhatstoriescanyousharethatdemonstrateyourresponsesfromBoxes1,2,&3?5.WhatimagescanyousharethatdemonstrateyourresponsesfromBoxes1,2,&3?Usethequestionsbelowtoidentifyhowyoumightbesuccessfulinsharingyourstory.AnalyzeyourresponsesusingthechartaboutONLINEPLATFORMSATAGLANCEonpages22-23.
6.Istheresomeoneinvolvedwithyourfarmwhoenjoyswritingaboutthefarmandfarmlife?
Yes No Unsure
7.Doessomeoneinvolvedwithyourfarmhavethetimeandabilitytoregularlypostfreshcontentatleastseveraltimesaweek?
Yes No Unsure
8.Doessomeoneinvolvedwithyourfarmhavethetimeandabilitytoregularlytakephotosonthefarmoratmarket?
Yes No Unsure
9.Whoisyourcustomerbaseandhowdoesthisfactorintostrategiesforpromotion?Doyouwanttoexpandyourbaseorfocusinonanichegroup?
Yes No Unsure
MarylandFarmersMarketAssociation©2017
Acknowledgements
Funding for this guide was supported by the U.S. Department of Agriculture’s(USDA) Agricultural Marketing Service through grant 16FMPPMD0049. Itscontents are solely the responsibility of the authors and do not necessarilyrepresenttheofficialviewsoftheUSDA.
Funding for this guide was provided through theRural Maryland Council MAERDAF FY 2017 grantprogram. Its contentsare solely the responsibility
oftheauthorsanddonotnecessarilyrepresenttheofficialviewsoftheRMC.