I use the OPX(organic price index) @ NEW FARM as an pricing aid, grocery stores & other marketers, then adjust. Some times prices must be lower in certain areas, some areas the prices can be a bit higher. I find that in a area with higher learning(college towns) premium prices are ok with the more educated types who appreciate well grown food items which are grown using sistainable practices. I charge more for the 1st crops and adjust down as more items come to market. Most price cutters aren't well thought of and the public sometimes assumes a lesser quality product, therefore reducing sales.

Pricing is such an artform in itself. Sure you can gather all the information from other sources but if your product is unique and in demand then a higher price may be warranted. If you don't have a high quality product then lower the price a little.

A few examples I can relate are Tomatoes and Raspberries. Both are priced using different criteria. I will start selling tomatoes next week at $3.75/pint. The price will only remain for a few weeks, then I will drop the price 25 cents/ pint every week until it reaches $2/ pint. In the fall after a killing frost the tomato price will be raised each week using a similar weekly increase.

With red Raspberries the price I charge never changes, even for larger quantities. I can get $3.75/half pint from early july thru mid November and customers know the labor involved and selling out at that price weekly is not a problem.

Other produce may be handled differently. I always sell my basil bunches for $1 each but last weeks bunch size was only 8-10 stems whereas in a month the bunches will be as big as I can get my hand around to bunch. That price may sound a bit cheap but summer basil is easy to grow and I can not only move 150 bunches of basil but also draw people to tomatoes and other produce.

That part of my pricing logic. If it doesn't sell then you need to evaluate your program. Either charge less, change the display or decide to stop growing if it is not profitable.

Do not undercut others all you will do is end up making some people mad at you and losing money. it is best to stay in line with the other vendors or even charge a bit above them. Believe it or not but most folks see a higher price as higher quality. if ypou are always selling out of something than the price is too low, if it is not moving well at all than lower the price by 25¢ each market until it starts selling well.

It is best to sell by the piece or basket/bag because it takes time to weigh out items and you will lose some sales doing so. Also most markets require scales legal for trade that have been checked out by the county auditor. most of my stuff is either boxed/bagged before I get to market or sold by the piece. I do still weigh out some items like baby zucchini.

Tomatoes should always be sold by the box, if they are loose people will handle tham and you will lose about 1/4 of the maters you take to market from rough handling. If they are in boxes most people will not pick them up, bruise them and than put them back. I sell big tomatoes in quart boxes and cherry tomatoes in pint or 1/2 pint boxes

I also agree that undercutting isn't wise; you need to "get along" with your fellow vendors even if you shouldn't be collaborating on prices. A lot of these folks are just trying to stay in business and make a living.

One thing I'm inclined to do, however, is drop the price during the last hour. I don't want to take too much stuff home and exposure is likely to have had an effect on the vegetables and flowers after a few hours. Also, there are customers who show up with the very intent of bargaining on prices at that time. I'd rather just drop them and say that's what I'll take.

Most of the price guidance is coming from the going price at the market but we do reconnaissance thru the supermarkets during the season. Try to get 10% above and no more than 10% below supermarket prices (mostly, ignore the sale items  loss leaders). Seems to work in providing guidance.

Steve

Thanks all....most helpfull and made me think of some things I had not before!

what is the best price i should sell my freshly picked squash and zucchini for they both are whole and just came out of the garden

I may be new to the market I am selling at this year but I've been selling for years and I believe most customers make the subconscious decision to buy your product before they ever see the price. Price matters but it is not the most important thing. If your price is too high it may stop them from buying as much but I doubt it stops them from buying.

Customers at our market when surveyed say they expect to pay 50cents more than supermarket prices. I know of other farmers markets where the prices are double supermarket price and they have no trouble selling everything. But those kind of markets are usually well established and they have "trained" their customers to pay more after years of keeping them happy with fresh high quality produce. If your market is new or young you may have more trouble getting premium dollar for your goods.

I'm a consumer and I'll tell you what I look for.

1st and foremost is quality. If the quality isn't there, I don't care what the price is. The reason is because I go to the farmers market for quality.

Once I determine the quality, I look at price and I expect to pay around grocery store prices. Yes, I'll pay more for better quality, but I find many vendors of fruits and veggies get their products from the same places that the grocery stores get them from. The difference is that they have some things they grew themselves.

I am lucky in that I have a local farm stand that has very high quality fruits and veggies with prices lower then the supermarkets. They supplement their home grown with commercially grown, but they cherry pick what they get commercially to resell. I am also lucky because I have a friend who's family is in the wholesale fruits/veggie business so I know where many of these "Farm market" vendors are getting their product.

Some of these consumers just crack me up because they're not thinking. They buy bananas and think they were locally grown because they were gotten at the farmers market. Come on, how do they not see the large "Dole" banana boxes in the back? How do they not realize you can't grow banana around here or other products that arn't in season?

We try to go by what the local supermarket prices are on stuff as a guide and request our vendors not undercut other vendors. We reason if the supermarket can charge what it does for their produce we ought to be able to get at least that much if not a little more.
Some vendors have thought they need to be cheaper than the grocery stores, but we've been educating them to educate the public that FM produce is better, fresher etc. and that most people will not have a problem with that.

..yahh, right, and no-one has so far mentioned sitting down and doing your sums, a cost-analysis time thing..

..what others get is only a guide line, but you should have learned by heart your depreciation costs, the hourly cost for a replacement worker, your input costs, etc etc, + 10%, all per crop..

..and that's before they leave the farm..

..if you haven't done your basic spade-work, then there's likely to be tears by bed-time..