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rio_grande124

Pricing is the hardest part of this

Rio_Grande
10 years ago

Got an ear full on the phone about how expensive we are compared to the farmers markets. In some instances that is true. We are charging 60.00 a bushel for green beans, 50 if a CSA member but with all the labor involved in gb harvest it is worth it to us to eat them for any less. We will can or freeze them and eat. But on other things our market is just way too cheap. Salad for instance, they get 1.00 a gallon bag. The going price is 2.00. We will sell it for 2 not a penny less. Corn is selling at the farmers mkt for 3.00 a dozen we price our bodacious at .50 an ear. I guess we are just expecting too much.

Comments (33)

  • myfamilysfarm
    10 years ago

    $3/doz has been the going price at farmers markets since 2000. It's hard to get the price up there unless you can talk the other vendors into raising their prices.

    The last I sold bushels of green beans was $40 for 25#.

    I've found that I can't price the same as my Amish friends, people expect higher prices and better quality from their stands. Amazing thing is we both have purchased from the same place. They price their stuff the same as Lancaster, and that's much closer to largest metro areas.

    When someone complained about our prices, we offered 1/2 price if they picked them after they drive out to our place. Never had anyone take us up with the offer.

  • Rio_Grande
    Original Author
    10 years ago

    Spent a few minutes talking today to my parents for whom I really do this for. I think our issue is for years people stop in at the farm and buy produce and as I have mentioned before we use the Amish auction prices as a gauge for pricing. What we found when we started to venture into looking for customers as we have this year is there are tons of people who are happy to make 30.00 for a bushel of beans regardless of what they have in it. That's not going to work for us. Gonna have to figure out a direction. I know we won't be growing salad for 1.00 a gallon. This isint ment as complaining. I just not fond of working my tail off for nothing especially when it isint my money that's being lost. Had a 2 bushel order today that was a no show when I went to meet her, won't answer her phone. Fun..

  • little_minnie
    10 years ago

    Being you pay for utilities, vehicle insurance, mortgage, etc and they don't you can't work that cheap. Just calculate what you earn per hour and tell customers what it is when they say you are too high. I like Marla's idea of picking their own green beans. If I could get someone to pick all my beans I would give them half for free!
    I calculated my earnings as maybe $3 an hour. I will not lower my prices.

  • Rio_Grande
    Original Author
    10 years ago

    They are worth it to us to keep. Local lady told me tonight she can buy them for 25 a bushel. We ain't doing that. I need to get the rest of this sorted out so we can make some on this venture.

  • jrslick (North Central Kansas, Zone 5B)
    10 years ago

    I dislike green beans, always have, always will. They are so labor intensive. It takes just about the same amount of time to pick 5 pounds as it does 50. You have to bend over and check every plant. It has gotten hot and I have just let them go and pick what we get for ourselves. I will water the crops that have a better chance of producing.

    I don't grow Sweet Corn, but everyone sells it for $5 to 6 a dozen. The person who had the first sweet corn was selling it for 3 ears for $2 or $8 a dozen. That lasted one week.

    $1 for salad mix, that is crazy. How much weight? We do half pound bags for $3 to $3.50.

    We are getting $3 a pound for tomatoes right now, which is crazy to me, but I was at $3.50. I lowered it as we have picked over 800 pounds in the last 4 days. We have two markets on Saturday, I hope we can rid ourselves of this glut.

    Jay

  • Rio_Grande
    Original Author
    10 years ago

    I think I. Spaced my planting to far apart. The only thing we have really been hit with is beans. If we can't sell them what we don't can I will push out to the CSA everyone seems to love them. I had a buyer who said our beans are so much better than the rest around that she thought our prices were just right. Now to find 20 more like her.
    Not sure on the salad weight, it's a gallon bag. We send out 2 gallon bags with the CSA I don't think it's enough,but that is what the share calls for.

    800 lb of tomatoes would rock especially at 3.00 a pound.

  • randy41_1
    10 years ago

    we weigh our salad mix and put 1/4 lb of it in 10x14 clear plastic bags...is that a gallon? we charge $10/lb. or $2.50/bag.
    800 lbs of tomatoes is impressive but we don;t have the market for that.looking to get $3.50/lb tomorrow at the market and hoping for at least 100 lbs.
    we were charging $4/lb for early hoophouse grown beans. when we start selling the outside grown beans they will be $2.50/lb. we sold some beans last year wholesale for $1.75/lb (or was it $1.50?). not doing that again.

  • jrslick (North Central Kansas, Zone 5B)
    10 years ago

    I wasn't hoping for 500 pounds in a week either, but it has gotten hot and dry and they all are just turning. Another high tunnel grower has about 200 pounds and outside growers have 40-50 pounds at Wednesday's market. This week is our county fair and we are busier than ever with all the kids projects and responsibilities. Some how we are going to pull off 3 markets this week. 1 on Wednesday and 2 on Saturday. I may have to be up late into the night and up early to make it work, but this is why I grow in high tunnels to capture the early profit while prices are high!

    My only problem is with such a late spring, I didn't push my outside plantings to get them in early, so while the outside ones look great, they have set on and growing, I may run out of tomatoes before they are ready. I have been trying to avoid that, but I may have messed that up again!

    About pricing, It takes time. When we started our market farm and sold at the local farmers market, prices were rock bottom. People were bringing in there extra stuff and they were one step above giving it away. There were very few, if any, every week vendors. We attend market every week now, we are there rain or shine. Over the years, we have slowly rose our prices. You can't just start with high prices unless it is a more established market.

    Jay

  • myfamilysfarm
    10 years ago

    $1 per bag of lettuce is too cheap unless maybe that bag is a qt or pt.

    Speaking of green beans, I picked up 4 bushel (26#) for less than $10 today for my own use. No need for me to grow and pick them for those prices.

    I've been selling about 100# of tomatoes each week in my little bitty market at $2. I'll stay there until the cheapy guy comes in and undercuts me. My market won't stand for more.

    Sweet corn was going for 50 cents/dozen today at auction, unfortunately I wasn't driving the truck, so I couldn't get any. Next week, the truck goes.

  • jrslick (North Central Kansas, Zone 5B)
    10 years ago

    50 cents a dozen, who can make any money at that price. That is legal robbery, in my opinion.

    Jay

  • myfamilysfarm
    10 years ago

    I know, but that's what the people paid. The amish think of it like this, they hope to get the good prices early and late, and deal with the glut time. There was probably 1000 dozen or more. Many people took corn home, just not me, I barely got loaded what I bought (most for me, I can't grow it for what I can buy it for).

    Wednesday, they were selling 1/2 bushels of peaches for $5.00. The transportation cost was more than what they brought.

  • Rio_Grande
    Original Author
    10 years ago

    Got a little insight today. Stopped at a market in a town next to us. Walked he isles and saw alot of beans at 2.00 a pound and we would do that price. I stumbled on some 25.00 bushels and the first thought I had was aren't they called GREEN beans, wilted picked so early there was very little beans. What I learned today is but for one stand who had great looking green beans but no price on them, the rest were not of the quality we are selling. I have 2 bushel to deliver in the am and they will get picked tonight and spend the night in a 40 deg cooler until we take them to the consumer. Everything but the one looked several days old to me.

  • myfamilysfarm
    10 years ago

    If you pick them very small, they will look wilted very quickly, unless cared for correctly. We're selling at $2.50 per pound, but year before last couldn't get more than $1.50.

    You need to know what things are selling for in nearby areas, versus what others of us can get. Markets can be so different with prices or even what sells.

    I always got $50/bushel for tomatoes, but my tomatoes were #1 perfects. Many people got sticker shock, until they seen what was actually in the boxes. Same with the green beans, we tried not to have any broken or moistened beans, which can lead to moldy spots. Plus our stuff was never put in a cooler, and was always less than 24 hrs old. Still try for that, but we do have a couple of refrigerators that are barely turned on, just to take a bit of the heat out.

  • Rio_Grande
    Original Author
    10 years ago

    So we shouldn't cool them? I did that to try and keep them fresh.

  • randy41_1
    10 years ago

    we cool them. prevents excessive flexibility. like when the customer picks one up to see if they snap.

  • little_minnie
    10 years ago

    Beans need to be cool but not cold and not wet. Very fussy.

    When I had plenty of lettuce I was giving 1.5# to the CSAs and writing down $6. Some complained about too much lettuce but hub and I would eat 2# in a week easily.

    I use a little garden scoot to pick green beans. Really helps. The one I have is actually a kid's toy thing. I never noticed that until recently. But I must have had it 15 years! I remember I was embarrassed when my parents gave it to me but then I started seeing how awesome it is. It has a lid that lifts and I put my tools and gloves and stuff in it. Then I put a kneeler on for a padded seat. When weeding and I get sick of sitting I can use the kneeler for a while.

  • little_minnie
    10 years ago

    Something like this scoot. It is covered completely so I leave it out by the beans and rain doesn't get into the tools usually.

    Here is a link that might be useful: garden scoot

  • Mark
    10 years ago

    I put beans in the fridge and they hold just fine. Not wet of course, but cold is no problem.

  • myfamilysfarm
    10 years ago

    I've been putting them in the warmer frig and keeping for almost a week. Of course, I try to keep them as dry as possible. Too cold will help cause moldy clumps if any bean is broken and exposed to air (doesn't seem to if in ziploc type of bags).

  • diepilze
    10 years ago

    Understanding blended margin is important. You can't make a killing on everything without scaring customers away to competitors.

  • Rio_Grande
    Original Author
    10 years ago

    Not trying to make a killing, trying to make a reasonable wage, but I see where you are coming from. Mom brought to my attention today that she could go to the local store and figuring sizes we were still cheaper than buying a can at a time from the store. Again we like beans and despite selling all but on bushel we have picked will eat what doesn't sell.

  • myfamilysfarm
    10 years ago

    In the US, our food is the cheapest in the world. This has been established for years. (I'm talking about the civilized world, not 3rd world). This is due to government subsidizes and the low migrant labor costs. If the 'farmers' were paying minimum wage, the price of our grocery store food would double at the minimum.

    I just canned up 26# of beans (1 bushel box full) and got 18 pints and 10 qts. At the store, buying 1 can at a time, the pints would cost me $1 (for better, not generic), so the qts would cost between $1.75-$2. Plus the jars ( I already had mine, but to replace would be almost $1 per jar, including ring and lid). So if I bought from the store, it would cost me $35.50 (taking the lower price) and by canning myself (adding in the cost of jars for 1st time canners) it would cost me $28 for jars plus what I would paid for the beans (in my case $10). That means what I 'saved' by canning myself (not counting the work and electric) would be $-2.50. I'm not including the pressure canner that would run at least $50-60, one time purchase.

    Now do you see why 1st time canners don't think canning is 'worth' the dollars. Plus that is at $10 bushel. If I paid $40 bushel, it would have 'saved' a $-32.50. Not even if they had the jars would it be cheaper to can. this is based on $$s ONLY.

    I debated for several years whether it was worth it to me to can. When I really started, I was on a diet with NO salt and at the time, you couldn't buy the low/no salt processed veggies. Plus we had 3 growing boys (almost teenagers) and we could/did grow it ourselves. I inherited many jars and the canners were gifts from yard sales. I decided that the last few years, I would start canning again MAINLY to be able to teach the younger generation, so they would have the option that I had.

  • diepilze
    10 years ago

    Specialty crops help my "blended wage" during the glut period.
    I am able to set the price on french beans, wax beans, asparagus beans, edamame and fava beans because no one else has them. I don't sell a bushel of each but having a higher margin makes up for it. If the crop fails, or I can't harvest, or if ppl refuse to buy, then its just a cover crop.

  • myfamilysfarm
    10 years ago

    I usually sell the 'tradiitional' crops for those people that want to can.

  • little_minnie
    10 years ago

    I made a list of prices at the grocery store where I work. Does not compete with Walmart on day to day prices. These are all regular, not ad prices.

    Garlic 3.99lb
    Tomatillo 2.99lb
    Vine on tomato 2.99 lb
    Hydroponic tomato 2.49 lb
    Roma 1.49 lb
    Yellow/orange vine on 3.99 lb
    Cherry pint 3.99
    4 pack tomato 3.49
    Winter squash 1.49 lb
    Onions 1-1.69 lb
    Red potato bulk 1.69 lb
    Napa cabbage 1.59 lb
    Cabbage .69 lb
    Lettuce 1.88 each
    Butter lettuce 3.99 each
    Broccoli 1.68 lb
    Red pepper 1.88 each
    Green pepper .9 each
    Cucumber regular .98 each
    Snap pea 4.99 lb
    Snow pea 3.99 lb
    Beans 2.99 lb
    Zucchini or summer squash 2.49 lb
    Leeks 2.49 lb
    Kohlrabi 4.99 for 3
    Eggplant 2.49 each
    Sweet corn 4/1.88
    Radish bunch .99 each
    Scallion bunch 1.08 each I think
    Green top carrots 2.99 bunch
    Organic zucchini 3.99 lb
    Organic red pepper 3.99 each!
    Organic cucumber 2.99 each
    Organic snap peas 3.99 pint
    Organic cauliflower 3.99 each
    Organic broccoli 3.99 each

  • myfamilysfarm
    10 years ago

    I was comparing the canned goods in the store, not fresh.

  • little_minnie
    10 years ago

    Had nothing to do with your post.

  • myfamilysfarm
    10 years ago

    ok, misunderstood. It's good to know what other areas' grocery store prices are. Thanks for all the work. I know the canned goods are going up, most $1 or more per can for the better brands.

  • diepilze
    10 years ago

    Re: little minnie
    I worked as a produce manager for a few years after dropping out of school. A typical margin for Walmart or Kroger is around 30%-33%. Fresh Market shoots for 32-36%. Whole Foods Market shoots for 38-42%. When I worked for Fresh, middle management did not set GP% targets. Every manager was expected to be above comp (average GP%). Simple method for firing half of your dept. managers every three months.
    A lot of produce managers are very skilled at manipulating inventory levels in order to make it look like they are turning a good GP%.
    ) //end offtopic

  • 2ajsmama
    10 years ago

    Wow minnie some of those prices are more than I would expect - maybe b/c of short growing season there? Here squash is on sale 99 cnts/lb usually $1.49-1.69, even saw organic for $1.79/lb today. Also saw organic curly kale for $1.99/lb (misprint? Should it be $1.99/bunch??). I'm wondering if I overcharged lady who came out last night, $3 for 6 large stems of white Russian kale and $2 for 2.25 oz of curly blue Scotch? I think I gave her good price on blueberries - $4/pint.

  • little_minnie
    10 years ago

    The prices are regular not sale prices as I said. I don't think much of it is grown here. I wouldn't call this store upscale but it isn't cheap to buy things not on ad. All prices are set at corporate not by the produce manager. I am in pricing.

  • 2ajsmama
    10 years ago

    Other than the 99 cent squash those weren't sale prices for here. Though in New Haven farmer's market organic squash was $2/lb (but organic blueberries were $7/pint!).

    Do you think I overcharged on the kale? The curly kale was in a gallon bag, it takes up a lot of room so I thought $2 was OK since I'd sell same size bag with a bit more lettuce in at $3.

    This post was edited by ajsmama on Wed, Jul 24, 13 at 8:16

  • myfamilysfarm
    10 years ago

    If the customer didn't complain, you didn't overcharge.

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