For farmersnewand one-time , pricing grocery green groceries can be a challenge . You do n’t want to overcharge and miss sales event , but you also do n’t want to charge too little and underestimate your own hard study or undersell your fellow farmer . With these factors in idea , not to mentiondroughtsand low yield , where do you begin ?
Calculate Production Costs
If you have keptthorough recordsfrom the beginning of the season , you could get a good idea of your production cost for a finical item through the next formula : Add up your pre - harvest costs ( seeds , tools , labor , etc ) , disunite that by the region used to grow something ( acres , straightforward foot , et cetera ) . Then divide that numeral by the phone number of pounds glean of that item .
If you make up yourself a decent wage for labor , this formula should give you a rough estimate of what it costs you to grow a certain point , and a good approximation of the minimum per - pound - Mary Leontyne Price you should file . In other words , never burden less for a merchandise than what it bring you to bring about it . count your product cost , then consider the other factors below before land on a firm sales agreement price .
Observe Local Prices
Because you ’re uprise the nutrient yourself and picking it by hand , you ’re going to charge more for your produce than the supermarket will . Supermarkets often get their food inexpensively from big farm , sometimes in other countries , and it ’s not usually viable trying to compete dollar for dollar sign . However , block off and look at supermarket garden truck prices to determine a baseline cost for each item . If the supermarket trade organic ruby-red black pepper at $ 2 per lbf. , you should feel positive to ask at least that much for your own homegrown peppercorn . Occasionally , you may be able-bodied to charge less and still make a decent profit , in which case it would be worthwhile ( and fun ) to permit the customer know that your prices are cheaper than the supermarket ’s .
Consult with Fellow Farmers
It helps to be on good terms with the other members of your market , particularly when hop to price something for what it ’s deserving . train other farms ’ prices and speak with fellow farmers to debar uttermost price gaps . Keeping your prices in stemma with others will see that they will work with you on pricing and wo n’t undersell you in the time to come , effectively helping the profits of both farms .
Consider the Season
Some time of year are better than others , but if you are having a dry or particularly raspy acquire season and your yields are suffering , it might be necessary to consider that in your pricing reckoning .
Joe Evans of Paper Crane Farm in Asheville , N.C. , order 2013 was a hard year . “ Our prices at securities industry excogitate that to compensate for some of the losses we had incurred throughout the time of year , ” he aver .
Chances are , of course , your fellow local farmers are going through the same issues and a little audience with them will provide a consensus on a fair and general price for an detail .
Use the USDA
The USDA ’s Agricultural Marketing Service provides a cost leaning for more than 400 fresh fruit , vegetables , crank , ornamentals and other speciality crops . Theirwebsitemakes it easy for you to pull up nearly anything you might sell , giving you a good idea of price percentage point at markets around the country . Keep in mind , these price sometimes deviate , and many of them are sweeping Price , so like depend the price of your produce , other agent should be taken into history before determining a last price .
Balance Supply and Demand
If you arrive at market and find you are the only farmer with say , dulcet cornormelons — which are often in high need — your product abruptly takes on raw economic value and you could consider asking slimly more for it . However , if all Fannie Farmer are selling a fussy item , asking too much more for it can put you at a disadvantage .
If you have a product that customers seldom see at market , such as artichokes or powdered ginger , the novelty alone may demand a mildly higher price than what is across the country uniform . Be reasonable , but never devaluate what you do or chaffer any more than you sense well-off . More than likely , whatever you charge is what the vegetable is worth , and you should feel positive in standing behind that . As Eliot Coleman write inThe New Organic Grower(Chelsea Green Publishing , 1995 ) , “ Food price should muse quality , just as damage do in other consumable goods . ”
