A farmers market is 'theatre'; customers expect it to be more lively than a supermarket! Display, layout, containers, signage, composition, color, contrast, structures and lighting, as well as the products and service you offer customers and how you talk to them, all come together to tell your story. What makes you unique?
-Leon Sugarman, Architect and Urban Designer, San Francisco
FARMERS MARKETS ARE growing fast. The 1992 National Farmers Market Survey showed that the number of farmers markets across the country continues to grow, and more will be developed over the next several years. According to the survey, conducted by Public Market Partners, over 1,800 farmers markets operated nationally in 1991. This compares with slightly under 1,700 in 1988.
Farmers, shoppers and city planners alike are sold on the concept of farmers markets, and no wonder. At a well-trafficked farmers market, part-time farmers can achieve gross sales of from $300 to $500 per day, while full-time growers often gross up to $1000 a day! Some farmers selling at the Greenmarket in New York City drive over 200 miles to sell there!
Farmers markets differ from other direct marketing operations in that growers usually share insurance, advertising and other marketing costs. Farmers markets may be operated by grower organizations, by community development groups or by state or local governments. Facilities may range from an open lot where farmers park their vehicles and display products, to enclosed buildings with display counters, lights, heat and refrigeration. Farmers usually pay a fee for the space occupied to cover maintenance and advertising.
Farmers markets often serve as business incubators for startup growers, giving young businesses a chance to get off the ground without the overhead expenses of a traditional business. Also, many large farm operators who sell most of their produce through conventional outlets use farmers markets to dispose of produce that does not meet the requirements of conventional outlets. Such products include undersized or oversized fruit, and fruit too ripe to withstand the rigors of the conventional marketing system.
Consumers enjoy a wide selection of farm-fresh produce at lower-than-supermarket prices. Produce is available in large quantities for canning, and consumers also find in farmers markets an opportunity to support local agriculture and meet the farmers who grow their food. Farmers markets are also important social events. People stop and talk, or exchange recipes. Money spent at farmers markets generally tends to stay in the community, benefiting farmers and townspeople alike. Farmers markets are being used to regenerate downtown areas.
Advantages
Sellers at farmers markets enjoy all the benefits common to direct marketing, such as cash payment, and the pride and fun in selling to the people who enjoy eating their produce. In addition, there are special advantages in selling at a farmers market: Startup. For the beginning or small farmer with little access to established marketing channels or small amounts of produce to sell, the following advantages of farmers markets offer a golden opportunity to get started in farming:
* minimal marketing startup costs, requiring only truck and selling area;
* exemption (at most markets) from standard size and packing regulations;
* little or no packaging, advertising and promotion costs (since farmers markets are usually well established and centrally located); and
* prices substantially higher than wholesale.
Personal promotion. Farmers markets allow you to talk with and educate people about your farm and your growing techniques, and to pitch your product face-to-face with the buyer. One Southern California farmer couldn't sell his exotic chocolate fuyu persimmons wholesale, but when he took a truckload to the Santa Monica Farmers Market, at least 85 percent of those who tried his samples purchased a bag!
Customer feedback. Farmers markets are the ideal place to experiment with new varieties, and get customer reaction before committing to planting on a bigger scale. By chatting with customers, you can gain new product and marketing ideas, suggestions for packaging your products or new ways to use your products, and immediate response to new products. You also can learn from other producers at the market, as growers share ideas and experiences. Doug Richardson, the only commercial banana grower on the continental U.S., planted 40 varieties of bananas on four acres near Ventura, California. By going to farmers markets, he found which varieties achieved the greatest response, and soon expanded his banana acreage to 12 acres, focusing on those varieties which were best received in the farmers markets.
Miscellaneous. Insurance, advertising and other marketing costs are usually the responsibility of the market rather than individual growers. Parking space, restrooms and other facilities are usually provided by the market. At most farmers markets, the sponsoring group already has worked through many of the regulations and restrictions-zoning, sign, health department, business license and site insurance-which might take considerable time and effort to comply with if you tried to market at home.
Disadvantages
Farmers markets share the common direct marketing disadvantages of limited volume and the need for other market outlets, greater time involved in dealing with people, and a higher proportion of your time spent in marketing. Consider the value of your time in selling the produce. Be prepared for long hours spent in loading up, traveling to the market, unloading, setting up, and the reverse at the end of the day. There may be waste, unless you have secondary markets lined up. Cold, rainy days, or even bright sunny days, may keep customers away. Depending on the market where you sell, there may be space limitations, product limitations, a few irritating rules, bureaucratic policies, and politics you have to deal with. Volume per sale will be small compared to wholesale.
Also, producers may be required to rent stalls for a year when they need them only a few weeks. At most markets, the producer can sell only produce grown on his farm. Market hours are controlled by the market organization and may not be ideal for producers; advertising, or lack of it, also is controlled by the market. Markets that are poorly located may not attract consumers.
Special considerations
You need to pay a rental fee; sellers usually are charged a flat fee or a percentage (usually 6 -10 percent) of their gross sales. You'll need to coordinate production with marketing, and estimate demand when picking the load to take to market. You should have a variety of produce to sell, and be close enough to a market so that transportation time and costs are not excessive.
Rules and regulations vary from state to state, so check with the market manager as to which apply to you. Ask for a written copy of the rules and regulations. There may be requirements regarding weight and measure specifications, labeling, sales tax reporting, vehicle permits, and provisions for the food stamp and Women, Infants and Children (WIC) programs. Check also to see if you need to carry individual insurance for accidents at the market or for food product liability, or if the market covers these. Some markets require that you sell only what you produce, while other markets may allow you to sell other growers' items in limited quantities. In many markets, processed foods may not be sold. You may also need a health permit in each county in which you sell your product.
Check out the markets
Visit the markets. Ask your county extension agent or state department of agriculture personnel about markets in your area. Talk with the market manager and some of the sellers and patrons to get a feel for different markets. Check the prices and what kind of volume the growers are moving. How well you do depends more on whether there's a need for your product at the market than the market's overall volume. Are too many other growers offering the same product or variety of products? Ask the manager about items needed for that market, and consider adding them to your product line, or seek another market where there's less competition for your products.
Study the market's clientele. Are they the right market for your products? It may be worth traveling some distance to a market farther away in order to obtain a premium price for your products.
Study the market rules and learn the costs of participating-stall fees, promotion fees, and insurance assessments. Consider whether the market's hours of operation meet your work schedule.
Evaluate services offered, such as stall size, rainy-weather shelter, restrooms, and water for drinking or washing produce.
How much advertising and promotion does the market do? Is it timed to coincide with the time your product is available? Look for signs of active promotion, such as posted signs and banners, and flyers placed on windshields and store windows. Don't waste your time and resources in a market that is not actively promoted.
Consider alternatives. Could you consign your produce to a regular participant? Check market regulations to see if this is allowed.
Suitable products.
Farmers market product trends are toward diversification, unusual products, organic products, and value-added, processed products which can increase profit margins.
Offer a selection of mainstay products that are higher than supermarket quality: in-season, tree- or vine-ripened, fresh-picked and organic. Having mainstay products encourages one-stop shopping. Carry some non-mainstream items as well, such as cut flowers, herbs, or specialty items. A few unusual items will attract people to your stand, and having something new each week encourages repeat visits by your "regulars." Do not have so many items, however, that you have little of each-remember, the higher the heap, the better it sells.
Try to have crops available as early in the season as possible; if you consistently supply desired produce before other growers, consumers will learn to look for the products they want at your stall.
In larger and more competitive markets, you may want to specialize in a fewer number of high-value items like honey or mushrooms. If you offer only a few items, however, create diversity by offering a line of products. If you specialize in almonds, for example, offer raw, roasted, smoked and blanched almonds, almond butter, etc., in a variety of packages and sizes.
Quality fresh produce is the most important drawing card at farmers markets. It's OK to offer oversized or undersized products if the food quality is excellent. If products have cosmetic blemishes, are overmature or not up to the usual quality, however, reduce the price and sell them as seconds. Do not sell anything you would not use yourself. It is better to take home any picked-over "junk" food produce than to move it at bargain basement prices. Price cutting may cause ill will between buyer and seller, and between the price cutter and other sellers. A reputation for price cutting will soon develop, and patrons will try to bargain even for first-quality items.
Try to bring enough produce to last throughout the day, so that there's enough left for your last few customers. Develop secondary uses or outlets for what's left over. The aim is not to sell out, but to keep repeat customers.
What to bring: Prepare a list of things to take. Your list might include:
Shelter. Patio umbrellas, or a canvas patio (open-sided tent) provide shelter for yourself and your produce from sun and rain, as well as help make a colorful display. Be careful about color-choice, as colors affect food appearance (see "Display" in this chapter).
A lightweight folding table and a tablecloth. Remember to leave a space at the edge of the table where customers can set their parcels while getting out their money. Make sure your tablecloth is plastic, or a material that you can keep clean.
A plastic spray bottle of cold water. Spruce up your products throughout the day to help keep them fresh. Bring a water jug for yourself also, so you don't have to leave your stall to find a drink of water.
A cash box with change to start the day. Suggested amounts of change to bring to the market: If you estimate your gross will be under $200 for the day, bring about $80 in pennies, nickels, dimes, quarters, singles (ones), fives and tens; if you figure your gross will be from $200 to $500, bring about $150 in change; over $500 a day, bring about $160. Keep the cash box out of sight to avoid tempting the light-fingered. You might also utilize a carpenter's apron with deep pockets for holding bills and coins so that you can make correct change on the spot. This helps increase the speed of sales, and you don't have to turn your back on customers to go to a change box.
Signs. Use lots of them! Use cards and markers to make up display signs beforehand. Off-white paper is preferable to white paper, as white is glaring and tends to show flyspecks. Blue, green or red markers are preferable to black. Color-code your signs-use neon red for tangelos, green for avocados, etc. Department store-type metal sign-holders with slots allow you to replace the signs as needed for product or price changes. A green chalkboard along with several colors of chalk works well for posting a customer price list.
Be creative in your product signs. "Sweet, Ripe Kiwis"; "Savoy Cabbage, Crisp & Crunchy"; "Walnuts: Crack 'Em Yourself," etc. Describe your product-let people know that it is crunchy, tangy, tart or sweet. Provide useful information: "Good for soups" or "2-lbs. of these apples make an 8-inch pie," etc.
Scale. For the items you sell by weight, a simple spring scale hung from a bracket will suffice. It needs to be certified by the County Sealer of Weights and Measures. Consider purchasing an electronic scale. It will cost upwards of $600, but its greater accuracy will pay for itself if you do large volume. Most produce items can be sold by the piece or by volume, however.
Salespeople. Things go better by twos. Having a partner makes it easier to wait on customers and allows you to take a break.
Containers suitable for your produce. Look for used crates, baskets, or grape lugs (flats) from your local supermarket, and wash them thoroughly before using. If you are growing organically, be aware that organic certification rules forbid using crates and boxes with chemical fungicide residues from commercial packers.5 Wooden baskets are nice display containers, but they are expensive. Line the wooden containers with paper or plastic bags and then hand these removable bags to the customer, saving the wooden container for reuse. This reduces handling time and damage to soft produce from pouring into a bag. Paper bags are preferable from an environmental standpoint, but plastic bags for moist items may be a necessity. Use larger paper sacks for easier carrying of small individual items, and have large grocery bags for customers who buy a substantial amount of products. See-through mesh bags not only allow customers to see the quality of your product, they also allow air circulation and are great for hot days.
For cost and environmental reasons, allow customers to bring their previously-used bags for the produce that they're taking home. In order to avoid potential liability problems that might occur should a used bag be contaminated with chemical residues, however, use new bags for customers who do not bring their own.
Having your farm name and logo printed on bags is an excellent low-cost way to keep your image in the customers' eyes. Your state department of agriculture may have a program for cooperative purchases of printed shopping bags.
Educational materials. Recipes, pamphlets and flyers. Especially helpful if you're selling anything new or unusual!
Miscellaneous. Bring pencils, pens, calculator, a sales and tax record book, and business cards. Do as much bunching, bagging and pricing as you can beforehand. Be prepared for the morning rush of buyers. The more you do in advance, the smoother your day will be.
Bring yourself! Try to grow a diversity of crops so you can come to the market year-round. Regular attendance at the market is important, as shoppers get to like you, look for you, and depend on you!
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