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Dont overprice---Competetion High This Year !

Posted by kritzmicrogrow (My Page) on
Mon, Mar 9, 09 at 6:26

Hello Everyone, I am concerned about all of the people out of work this season. This would mean a huge surge in people growing their own produce ( or attempting).
Competition will be fierce at the markets this year. I will be very careful with my prices this season.
We might sell at a lower-than-normal price,especially in hard hit economical areas.
How do my fellow growers feel about this season?


Follow-Up Postings:

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RE: Dont overprice---Competetion High This Year !

I am keeping my prices the same or even a bit higher if needed. I feel there will be more people jumping in the game but the newbies will not be much competition as it takes several years to learn how to grow consistently and produce good food.

So I figure my long term customers will not be running over to all the new people simply because they have lower prices Many have been burned by the false economy of supporting a new grower because they are cheap but than find out quickly that the new grower is not consistent and does not show up every week and eventually leaves.

And I believe while we will see a lot of new faces come July and August, by September we will see a lot of these new "farmers"absent from the farmers markets when they find out just how hard it is to grow food for a living and how little it pays. especially the new growers who have not ever gardened much (maybe had a 10' x 10' plot).


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RE: Dont overprice---Competetion High This Year !

I have worked for 23 years building a market farm business.
It was built on maintaining the highest possible quality and
charging the highest prices at the market.
Are you lowering your prices because your produce is worth
less than last season? Or maybe because it is of inferior
quality or did you make too much money?
Amen!! to everything Lucy said in her post above.
We have lasted all these years not by cutting prices but by
maintaining quality and charging prices that allow us to make a decent profit.
Lower pricing is usually perceived as lower quality which
demands even lower prices......a never ending spiral.....to
the bottom.
I never really worry too much about price cutters.....over
the years most of them have gone out of business or changed
their pricing strategy.....I am still here!
Bud


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RE: Dont overprice---Competetion High This Year !

I agree about not lowering your prices. This year will be our second year selling for market. But it is not our second year growing vegetables, we have always grown vegetables for ourselves. I can not imagine how difficult it would be to make your first year ever growing vegetables your first year selling for market. Selling for market is definitely something that takes years of experience to perfect. Last year was our first year and we were lucky if we even broke even, but that was ok because both me and my husband have other jobs and was only looking to get experience and have fun for our first year, which we did. This year we will be expanding and hopefully adding at least one or two more markets. I think that those that will be selling for their first year and are expecting to make a living from selling at market right away will quickly learn that it a little more difficult then they may have expected.

I think that if you have been selling for a long time and have a good customer base, unless things get really really bad those customers will remain loyal to you.

I also agree that a lower price says lower quality. The market that we sold at last year is a very small market. The others that sold vegetables did not grow their own vegetables, they got the vegetables from a produce auction. They also priced everything much lower then you would find anywhere else and would have price wars. I never felt the need to join in. We kept our prices at a reasonable price and did not lower them no matter what the others priced everything. All anyone had to do was look at our table and then look at their tables and could tell the difference in quality. We let everyone know that all our produce was picked the morning of or the day before market, and people really appreciated the quality of our produce.

I wish the best of luck to everyone. Hope you all have a very successful year!


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RE: Dont overprice---Competetion High This Year !

This year, we are planting 2x-3x as much as last year. this year we have help, last year not.

We have always priced our produce at the grocery store level plus 10-25%, and have kept the level of quality at tip-top.

What I am expecting is, more people wanting to buy bulk/large quantities. Over the last few years, I have noticed an increase of these people. I do canning, so I can advise them also.

This is what I did last year, as an example.
My tomatoes were priced, at the lowest point, at $1.50-$2.00 per pound. I offered 25# boxes of tomatoes for $25.00 and had NO complaints. I offered either I sorted the tomatoes OR handed the customer a box and let them choose their tomatoes, then I weighed the box. I allowed 1.5# for the box, so a 25# box weighed 26.5# or alittle more.

I did not sell "canners" due to other vendors selling their #2 or worse as "canners". My customers know they pay more, but every tomato is usable, no rot or bad spots.

I don't know yet, whether my prices will remain the same or drop. I will decide when I get to the market. I'm not the cheapest, nor the most expensive. Just the best quality, and my customers know it.

I do have some individuals that are willing to buy the 2nds, but I also know that they know how to handle that type of produce and NOT sue me for inferior produce.


 
 

 

 


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