Direct Marketing of Farm Produce and Home Goods Direct Marketing Alternatives and Strategies for Beginning and Established Producers

A3602 Direct Marketing of Farm Produce and Home Goods Direct marketing alternatives and strategies for beginning and established producers

John Cottingham James Hovland Jordana Lenon Teryl Roper Catherine Techtmann

Table of Contents

Why try direct marketing? ...... 2 Financial planning...... 14 Know your fixed and variable costs . . 14 Direct marketing alternatives ...... 3 Pick-Your-Own ...... 3 Regulations ...... 15 Have a good location ...... 3 Obtain necessary permits ...... 15 Make harvesting easy ...... 3 Sell by weight or volume? ...... 15 Organize traffic flow ...... 4 Limit risks ...... 4 Merchandising...... 17 Provide supervision ...... 4 Pricing ...... 17 PYO keys to success ...... 4 Adjust prices cautiously...... 17 Offer recreation ...... 5 Pricing considerations ...... 17 Consider “rent-a-crop” ...... 5 Advertising ...... 18 Roadside markets ...... 5 Mass media...... 18 Typical PYO and Newsletters ...... 18 roadside market customers ....5 Signs ...... 19 Choose a prime location ...... 6 Special promotions and events ...19 Start with a simple design ...... 7 Display ...... 20 Plan for growth ...... 7 Sell by package or bulk? ...... 21 Sell quality produce ...... 7 Other management concerns— Roadside market keys to success ...7 employees, liability and Roadside markets checklist market assessment ...... 22 for handling produce ...... 7 Hire qualified people ...... 22 Farmers’ markets ...... 8 Training and motivating tips ....22 Plan a meeting ...... 8 Minimize liability...... 22 Farmers’ market keys to success ...8 Assess your market ...... 23 Invest the time ...... 9 Prevent common complaints ....23 Subscription farming...... 9 Cater to the customer ...... 23 Reap the advantages ...... 9 Talk to your customers ...... 10 Sources of help ...... 24 Subscription farming keys to success . 10 County Extension offices ...... 24 Home delivery ...... 10 Technical and adult education ....24 Try a catalog or newsletter .....10 Other direct marketers ...... 24 Home delivery keys to success ...11 Supporting services ...... 24 Selling to stores, restaurants and References ...... 25 other institutions ...... 11 Periodicals ...... 25 Determining business feasibility Books and bulletins ...... 25 and marketing goals ...... 12 Organizations...... 25 Marketing plan checklist ...... 13 Why try direct marketing?

Both farmers and exchange, transportation, storage here can apply to marketing other consumers these and processing. Only growers and goods. days are looking consumers handle products that are Producers who want to try for alternatives to otherwise sold from the farmer to a direct marketing can use this publi- grocery stores and wholesaler or food processor and cation. So can established direct 2 restaurants for fresh produce and passed through multiple market marketers who want to refine or other farm goods. Farm prices and channels before reaching the con- expand their operations through income levels, financial problems sumer. advertising and other methods. If and uncertainty of government pro- Many items are marketed you need more information on grams have encouraged farmers to directly: Fresh fruits and vegetables, what to grow in your area and how try roadside stands, farmer’s mar- cheese, eggs, meats and poultry, to grow it before considering direct kets, “pick-your-own” operations maple syrup, honey, baked goods, marketing alternatives, contact your and other direct marketing Christmas trees, bedding plants, county Extension agent for a listing methods. clothing, dried flowers, crafts, gifts, of agriculture, gardening and other Consumers seek new products novelties and more. This publica- publications available through and markets as changes occur in tion focuses on how to Cooperative Extension. income levels and lifestyles: People direct market today are eating 40 percent more farm produce. fresh vegetables than they did in However, 1970. Customers also cite wide much of the selection, social atmosphere and information helping farmers as reasons for direct market shopping. Direct marketing elimi- nates the “middle man” functions of food Direct marketing alternatives

Five direct market- direct marketers than they do from keting channels or other sources of ing methods are grocery stores. income. Only a few are profitable described in this Start small and be patient. You enough to stick to one form of publication. They will need to control costs to show marketing for the entire growing are pick-your-own initial profit. You will need to man- season. This might be a large-scale 3 (PYOs), roadside markets, farmers’ age a number of business issues, PYO operation or a roadside stand markets, subscription farming and such as quality control, pricing, and that has evolved into a more per- home delivery. A section on selling labor management. Word-of- manent, open-air market. directly to stores, restaurants and mouth and other advertising takes Following are descriptions of food services is also included. time to get around. Many pick- direct marketing alternatives, pro- No matter which methods you your-own operators report that it files of typical producers and cus- choose, experienced sellers agree: has taken 5 to 15 years to become tomers, and important things to Sell only top quality, competitively well-established, with the majority consider before starting your busi- priced goods and be friendly and of profits coming from repeat cus- ness. No one direct marketing cooperative with your customers. tomers. method is more successful than Today’s consumers expect better Most direct marketers have another. Success depends on the quality at comparable prices from alternative direct or wholesale mar- marketer.

Pick-Your-Own

“Pick-your-own” or “U-pick” PYO operators have quality prod- find and located near a town or city customers drive to a farm to per- ucts and prices, the willingness and to attract many customers. Most sonally select and harvest a crop. patience to work with consumers, PYO customers are within a half- This eliminates most of the harvest and a commitment to working long hour’s drive of the farm. and transport work for the grower. hours and weekends. Most successful PYOs are known Some advantages to the farmer Make harvesting easy for a specialty, such as strawberries include saving harvest labor and Consider a succession of same- or Christmas trees. Other types of storage costs, possibly less discarded crop plantings for a longer harvest PYO crops include raspberries, product, and more return per acre: season. The family that picks a grapes, cherries, apples, snap beans, People are less critical of fruit or bushel of tomatoes in July may green peas, sweet corn, sweet pep- vegetable quality when they pick want to come back for more in pers and tomatoes. their own than when they judge August. Clearly separate successive Less popular items include produce on the shelf. A PYO busi- same-crop plantings so customers watermelon, because some cus- ness can provide the needed don’t pick premature peas along tomers have trouble telling increase in income from existing with mature pods. Consult crop ripeness, and asparagus because acreage. Many berry and other production guides, like those avail- many people don’t know how to small crop PYOs can be profitable able through Extension, for crop harvest it. Pumpkins are a suitable with less than five acres. management information. PYO crop, but they are only in Provide disposable containers, great demand right before Have a good location such as deep cardboard trays for Halloween. Since the customer must go to harvesting berries or beans, or Customers are attracted to the the farmer, a favorable location is reusable containers, such as two- to farm-fresh products and “farm crucial to the PYO operator’s suc- four- quart pails for cherries and experience” PYOs offer. Successful cess. Your farm should be easy to other tree fruits. If you sell by weight, standard containers Keep people away from that weigh the same will save areas with farm animals or dogs, you time when you figure the poison ivy, ponds, cliffs and actual cost of produce picked. other hazards. A sign stating If you sell by volume, provide that you are not responsible for half-pint, pint, peck, bushel injuries does not legally free you and other standard container from liability, so it’s best to try sizes. to prevent accidents. However, Ask other PYO operators you can post “no trespassing” and grocers for help selecting PYO keys to success signs in restricted areas. This 4 containers. Before you stock • Have desire and ability to work will make a liability claim more large quantities, use the con- with people, children. difficult to collect. tainer yourself. Is it sturdy • Be willing to work dawn to dusk, Check with your insurance enough when filled to over- weekends. provider for recommendations flowing? Will produce on the on limiting risk to your bottom get crushed? Is it easy • Grow top quality produce, sell at employees and customers. to hold in one hand and set competitive prices. on the ground without • Have a good location, be easy to Provide supervision spilling? get to. You need supervision in Encourage people to • Be known for a specialty. any area where you allow cus- bring their own containers. tomers, not just for liability rea- • Promote heavily, especially the They’ll save money and you’ll sons but for better business. recreational value of the farm save time and trouble stock- Field supervisors should experience. ing containers. If people direct people to the exact loca- bring their own containers, • Have good risk prevention and tions where they can pick and weigh them before picking so adequate insurance. should show them how to har- you can subtract their weight • Have backup marketing channels. vest and handle produce with- from the total weight of con- out damaging crops. Every row tainer and produce after should have a moveable flag picking. of acreage allow customers to drive marker, and supervisors should to their fields, however this can cre- remind people to place the marker Organize traffic flow ate extra noise, dust and crop dam- at the point where they stop pick- A PYO operator needs to pro- age. Consider running a “shuttle ing. vide suitable parking, check-in and service” with a hay wagon or other Employees should be able to check-out stations, transportation to vehicle to and from your fields answer questions about product picking sites, and supervision of instead. growth, storage, and preparation. customers. They should be knowledgeable Parking on public roads is dan- Limit risks about pricing, specials, container gerous and usually illegal. Map out a Use fencing and signs to keep sales, and other policies, even if they large, well-drained grass, gravel or children and others away from dan- are not directly working in those asphalt parking lot with clearly des- gerous areas on your farm and unau- areas. Train staff to be friendly and ignated parking spaces. Parking thorized vehicles and people out of helpful. Schedule follow-up training spaces should be at least 10 by 20 your picking fields. Fences should sessions once in a while to keep peo- feet, and drive-throughs at least 25 be at least four feet high and made ple informed. feet wide. If you can afford it, hire a of wood or woven wire—never Call the U.S. Department of parking lot attendant to greet and barbed wire. Keep children off Labor office in your area concerning assist customers. Post speed limits or fences. minimum wage, safety, and child build speed bumps. A well main- PYO apple orchards should labor laws before hiring anyone— tained, supervised parking lot will have only dwarf trees so customers even family. make you less vulnerable to lawsuits. can harvest the crop from ground Some PYO operators with a lot level. Avoid using ladders. Offer recreation er harvest option. You rent an Typical PYO and apple tree or part of a strawberry Enhance the recreational value roadside market row to a family for the growing sea- of your business by making the customers son and the customer presents an picking experience comfortable and (Based on 1990 UW-Extension identification card before harvest- statewide survey) fun for the customer. Provide ing. A contract is essential for rent- drinking water, picnic areas, large your-own arrangements. It helps trash cans, recycling bins, wash • One-third live in a city customers stick to rules, such as areas and toilets. Add to your with 50,000 population. days and times they can pick, and income by selling pre-picked pro- • One-fourth are over 62 helps growers remain accountable duce, snacks, soda and other items. years old, and 43 percent 5 for maintaining the crop and noti- Use a cash register to help you are 26 to 45. fying renters of harvest time. An record sales accurately and keep escape clause is essential in case • Nearly 60 percent are track of which items are most prof- either grower or renter disregards educated beyond high itable. Plan initial investments appropriate rules of conduct, in school. One-third are wisely. Don’t add extra concessions case of crop failure and for other college graduates. unless you think you can break contingencies. even on the investment. • About half have home Customers should feel free to vegetable or flower Consider “rent-a-crop” visit as often as they like and pick gardens. as much as they want. It’s a good If you are already running a • Two-thirds report annual idea to charge for the whole sea- successful PYO business, you may household incomes of son’s use up front, based on expect- want to consider adding the “rent- over $25,000. One-fifth ed yield for a particular crop. a-tree or garden” concept as anoth- report incomes over $50,000. • One-third spend between Roadside markets $5 and $10 per visit. One- fourth spend less than $5. One in 10 purchase The roadside “stand” can be a Roadside market customers $20 or more per visit. portable wagon, truck, or just a usually live in or commute to the • Over half (55 percent) cash box on a table next to a bushel locality. Some roadside stands learned of the market of corn. At the other extreme are attract many tourists, depending on through word-of-mouth. year-round or open-air structures their proximity to parks, resorts • Four in five customers with refrigerated cases, shopping and other attractions. But the bulk were less than 40 miles carts, multiple checkouts and a of business must come from local from their homes. wide array of products. These mar- consumers in order for most stands kets are more labor intensive but to be successful. Typical roadside • Tourists account for 12 can also be profitable if their opera- market customers are middle class percent of the tors combine and promote the vari- or more affluent, have higher than customers. ety and convenience of a typical average educations and are con- • Three-fourths of grocer’s produce section with the cerned about good nutrition. They customers cite quality “home grown” and “farm fresh” are not necessarily loyal to one pro- as major reason for appeal of the traditional roadside ducer or another. visiting market. stand. Their operators frequently Roadside sellers must be • Nearly half (47 percent) buy some product from other pro- friendly and knowledgeable about were very concerned ducers or wholesalers and may also product ripeness, preparation and about the use of agri- sell a variety of non-food items, storage. They must stick to regular chemicals in crop including flowers, bedding plants prices, days and hours. The stand production and and crafts. or market must offer quality marketing. products, variety, and attractive dis- supplement family income, but is A well-traveled road or highway off plays free of dirt and pests. usually not the only income source. the farm may seem like a desirable Most roadside markets are open location, but a market on the farm three to six months during the Choose a prime location may have more advantages: Product, growing season. Many markets with Location is critical to the road- labor and supplies are handier, and extended seasons have added attrac- side marketer’s success. The business additional land is not needed. tions such as animals, wagon rides, must be easily accessible and within Before choosing a location, haunted houses and other entertain- a short drive from the primary mar- contact your state or county trans- ment. Some seasonal markets even ket area. Impulse buying by passing portation department to find out 6 have adjacent PYO patches. An motorists is usually not sufficient to about any long-range construction attractive roadside market can generate a profitable sales volume. plans in the area. Call your county

Utility room Loading dock Sink

Receiving and preparation area Office Refrigeration room Dry storage DDX X XDXD X X Sales area D= High demand D D D X D X D X items D X X= Related & X other items X B= Bulk items D X D X D X D X D D Entrance

B B B B overhang or awning

6’ 10’

60˚ 20’

25’ Parking lot

20’ planning and zoning commis- larger open-air market or sion or local township for any more permanent structure. zoning regulations and to Contact your county obtain any necessary selling Extension agent and visit non- and building permits. competing roadside marketers Your market site should be for floor plans and other ideas. free of rough terrain, ditches, Call area contractors for plans tall weeds and other obstacles and estimates if you need to vehicles or their occupants. Roadside market keys to building assistance. Contact Parking must be off the road success refrigerator dealers, grocers or 7 and marked spaces should be at other marketers to buy or rent least 10 x 20 feet. Try to pro- • Good visibility, accessibility from used refrigerators and other vide 15 parking spaces for every road. equipment instead of purchas- 100 vehicles expected daily. • On the farm or in a farm setting. ing everything new. Invest in Leave room to expand parking. • Caters to local customers. new equipment later, if your Again, check with local zoning business continues to grow. ordinances before planning a • Quality produce. Increase efficiency by parking lot if you’re selling on • Attractive, clean display. designing separate areas for a public road. • Well-informed, friendly employees. receiving, washing, prepara- tion, display and sales, prod- • Clear pricing policies. Start with a uct storage, utility, your office simple design • Steady business hours, evening and washrooms. Display pro- Beginning operators tend hours. duce in refrigerated cases, so to over build and over equip. A • Other marketing channels. you won’t need to move it simple, sturdy pavilion that around as much. Markets with allows easy access by customer enough space for a walk-in and seller, but keeps rain, wind cooler can use wheeled display and sun off you and your dis- Roadside markets checklist carts for easy loading, trans- play may be all you need. for handling produce port and overnight cold stor- Display produce on or in age. With careful planning, front of counters or tables. you can expand and develop _ Check delivery with invoice to con- Have enough room within your your market and its products firm order. booth or pavilion for chairs, as much as demand allows. cash and change, supplies and _ Inspect all produce at delivery. Sell quality produce extra produce. _ Mark receipt date on crate or car- You can build an attractive ton for inventory control. The typical roadside mar- keter specializes in local fruits and portable stand with some _ Trim and compost leaves and and vegetables, growing 60 careful planning and help from stalks. other marketers and builders. percent or more and buying Or, consult Facilities for _ Wash produce for sale. the rest elsewhere. Sources for Roadside Markets, listed at the _ Stack produce to prevent quality procured produce back of this publication, for bruising and leaking. include wholesale produce simple roadside stand plans. _ Sort, grade, size, package and houses, farmers’ markets, and label produce. other local farmers. Plan for growth It’s not easy knowing how If you are a successful _ Minimize handling of produce—use much and how frequently to roadside seller and are ready to pallets, carts, mobile racks. order produce. You could plunge into something more _ Know which items to refrigerate. order 50 watermelons for an elaborate, consider building a _ Check displays each morning to anticipated hot and sunny ensure top quality. weekend, only to find your melon available in grocery stores. Your own chandising and a quality display of sales dampened by cool and rainy experience is the best guide to order- goods. Thoroughly washed produce weather. Ordering more for holi- ing since customer’s needs and may be more important to the road- days, paydays, and seasonal desires change constantly. side market patron than to any demands (raspberries, sweet corn, Remember to order what your cus- other customer, since people who sweet potatoes) can boost your tomer wants, not just what you like. stop at roadside stands often buy business, as can ordering several cul- As with other direct marketing fruits and snacks to eat in their cars. tivars of apples, berries or other sea- alternatives, the success of roadside sonal items, an option not always markets centers around strong mer- 8

Farmers’ markets

A farmers’ market brings than customers at PYOs or two or more producers roadside stands, but they together with consumers at patronize the market more the same time and place, usu- often. ally once or twice a week, to Farmers’ markets have a market items such as fresh special appeal to part-time or fruits and vegetables, bedding small scale farm operations, plants, baked goods, cheese, although large commercial meats, homemade candy, farmers sometimes participate. dried fruits and flowers and Farmers’ market keys to The typical farmers’ market even homemade clothing and success seller must like people, have crafts. The number of farm- • Commitment and cooperation patience for crowds and offer a ers’ markets nationwide has from producers and businesses. clean, attractive display of increased in the last decade. • Strong advertising. quality goods. Wisconsin had approximately 85 farmers’ markets in 1990, • Regular market days and hours. Plan a meeting up by at least 20 over the pre- • Quality produce and other goods A farmers’ market usually vious five years. Increased for sale. begins with sponsors inviting interest in farmers’ markets is • Attractive displays. interested producers to a meet- evident in central cities, at ing to discuss market poten- • Steady prices, avoid price wars. suburban shopping centers tial, to choose a site and times, and in smaller communities. • Participants should have and to designate leadership. The typical farmers’ mar- alternative marketing outlets. Market sponsors can be busi- ket customer is an urban resi- • Strong market management and ness groups (such as the local dent attracted by the idea of clear policies. Chamber of Commerce), “farm fresh” quality and vari- county Extension committees, ety brought to the city. Yet producers or consumers. farmers’ markets in rural com- Market leaders can assist with munities also succeed because purchase in mind and are typically business permits and fees, state customers like the product variety in no great rush. One-third of the and local regulations, insurance and and social atmosphere created when shoppers at farmers’ markets indi- liability, publicity (including bad producers get together to sell their cate they combine other activities weather or other cancellation poli- goods. such as shopping and dining with cies) market layout, and market Farmers’ market customers visiting the market. These cus- rules. Leaders can also advise on don’t always have a specific tomers tend to spend less per visit product transportation, stand setup, pricing and customer relations. Invest the time produce there than you could on Successful markets are carefully the farm or if you have a “unique” If you already have a portable managed based on policies set by product other farmers’ marketers stand, or even just a truck and some the growers and sponsors. Producers may not have (maple syrup, honey, tables, it costs little to attend a must understand and follow the pickles or popcorn, for example). farmers’ market. Expenses include rules, which may require that prod- Few farms have the personnel or transportation, labor, any coopera- ucts be grown locally and that sell- resources to add regular farmers’ tive advertising fees, containers and ers market only their own products. market participation to existing packaging. The market’s opening day PYO operations or roadside stands. The major cost is time. A typi- should be widely publicized. Two people are usually needed to cal Saturday morning market, for 9 Newspaper ads and editorials, radio make sales and keep displays example, lasts three to five hours. spots, posters, flyers, mailers, local stocked at a busy market stand. Add harvest, packaging, transporta- TV and any other paid or free pub- Regular market attendance is crucial tion, setup and tear down time and licity just before opening day will to establishing good customer rela- you might need a larger time com- get the word out. All advertising tions and building repeat business. mitment to sell the same amount of should headline the location, hours, produce than you would from an days and months to quickly estab- established PYO or a roadside mar- lish the market’s place as a weekly ket on the farm— especially if you fixture and not a one time affair. have to travel far or attend a farm- Other information can include ers’ market more than once a week. parking locations and types of items A farmers’ market might offer for sale. advantages if you can sell more

Subscription farming

Through subscription farming, with doing their part to support Reap the advantages also known as “community-sup- local farms. Subscribers want Subscription farming has sev- ported agriculture” and “garden quality and freshness. To many, the eral advantages to the producer. memberships,” customers pay in term “community-supported agri- The customer typically pays for the advance for an entire growing sea- culture” is synonymous with organ- service up front or in installments son’s share of produce that they ic growing methods. at the beginning of the growing will regularly pick up or have deliv- Typical producers are proud of season. This gives the farmer capi- ered to them. their farms and what they grow. tal to purchase seeds, equipment Like other direct marketing Many like to make their subscribers and labor for the season and elimi- alternatives, subscription farming feel as though they’re members of nates speculation on future sales can adapt to local conditions and the farm rather than outsiders pay- volume. situations. Sharing the bounty— ing for a service. Farm-centered Instead of worrying about and the risks—of agricultural pro- activities enhance this community market fluctuations, the farmer can duction with members of the com- support. Harvest festivals, summer concentrate on growing a variety of munity not only provides con- solstice celebrations, fall cider quality crops that mature through- sumers with locally grown food, pressings, volunteer days for people out the growing season to ensure a but may even allow a farm to sur- who want to experience working steady supply of fruits, vegetables vive. on a farm, and other activities can and flowers to the subscriber. The Typical subscribers are urban strengthen the bond between com- producer typically receives a higher dwellers who may want to save munity and farm and bring more price than wholesale and the money, but are more concerned customers to the business. customer receives quality pro- goods before you become a duce at competitive prices. community-supported farm. Many of the on-site risks You are more responsible to a and supervision responsibili- prepaying client than to an ties associated with PYOs occasional roadside shopper. don’t exist with subscription Quality has to be top notch. farming. In addition, produc- You can’t pass off slightly over- ers spend less time selling or ripe produce by selling it at sitting around than roadside Subscription farming keys to half-price, so you might have or farmers’ marketers and success more waste if your harvest and 10 complete most of their mar- • Good word-of-mouth, other delivery methods are not effi- keting efforts by the begin- advertising. cient. ning of the season. • Have alternative marketing One way to deliver the Transportation time and cost methods. goods is to bring baskets, boxes can be greater, but product or cloth bags of shares to a cen- delivery to one central loca- • Sell only top quality produce. tral pickup site. Also set out an tion can defray this expense. • Promote a variety of fresh, local “extras box.” That way, if some- Many community- produce and alternative growing one doesn’t want all of their supported farms enjoy volun- methods. beets, they can toss a few into teer or bartered labor from • Have a contract clearly stating the extras box, while claiming subscribers who become more subscription terms. someone else’s extra carrots. Be sympathetic to farm life flexible with supply and through “belonging” to a demand to foster good relations farm. They offer help with questions and learn more about with subscribers. If you have harvesting and delivering produce their food and how it’s grown. surplus tomatoes one week and shares to customers and surpluses to Customers can provide valuable someone mentions they’re doing food banks. information on pricing and other some home canning, offer them marketing trends throughout the more. But be careful about giving Talk to your customers year. Do your customers think your members too much: It’s important to spend time they’re getting a good value? Are Customers indicate that they would cultivating personal relationships they satisfied with the delivery rather forego the surplus than have with your subscribers, even if only system? Are they satisfied with the food spoiling around the house. for an hour or two at a weekly variety of products? You will likely need to combine delivery site. Customers like to talk Apart from bad weather and subscription farming with other to farmers on delivery day, ask other farming risks, you have to be direct marketing methods to move fairly confident you can deliver the enough product and make a profit.

Home delivery

Many consumers who receive must cover the additional time and course). Some grocers advertise home-delivered farm goods value transportation costs this marketing their home delivery services in the the convenience of the service and alternative requires. The business yellow pages. This may be an like to believe the delivered prod- relies on imagination, ingenuity and option if you have eggs, cheese and ucts are of superior quality. Or they strong advertising. Word-of-mouth, varied produce to sell year-round. may simply like the producer and creative newspaper ads and direct want to keep in touch with a farmer mail can tell customers you are will- Try a catalog or newsletter because of their own roots or views ing to home-deliver. Distribute fly- If you want to publish your regarding family farms. ers, or take mobile sales wagons to own catalog, get ideas for content Profits from home deliveries campgrounds (with a permit of and illustration from other food gift catalogs. Contact catalog Many successful home marketers with non-compet- delivery companies maintain ing products—like cosmetics good customer relations to or greeting cards— to get make their customers feel more detailed catalog market- special and to promote loyalty. ing information. If you’re just starting out, call Consider publishing a your customers personally to “magalog,” which contains Home delivery keys to success find out whether they are satis- information and stories fied with your product. If you • A unique product with a reliable about the farm and its prod- have a solid customer base, try 11 ucts as well as product supply. publishing a quarterly newslet- descriptions and prices. This • Frequent mailings or visits to ter with articles about product type of catalog has a more keep in touch. uses and recipes, nutrition, “homey” look and is an • Catalogs or other clear ways to health, area recreation and avenue for educating cus- list products and services. history, and any tours or events tomers as well. you schedule on your farm. Publishing a catalog can • Reliable delivery methods. Ask customers to submit their be an attractive and profes- own recipes, letters sional way to market your stories, poems and other ideas product. However, you’ll for your newsletter. Include need to invest a lot of time clip-out coupons promoting and money in writing or get- your products or services. ting help writing the catalog, If you cannot handle all taking pictures or drawing illustra- and receiving the first orders. deliveries yourself, look into a tions, getting estimates from area People like browsing through cata- commercial delivery service. Also printers, compiling mailing lists and logs and may want to order a set of contact your local post office for paying for postage or other distribu- jams or a fruit basket at a later date. information on long-distance tion services. Be prepared for a They might also pass the catalogs delivery service. delay between mailing the catalogs on to their friends.

Selling to stores, restaurants and other institutions

Selling to restaurants, grocery The assurance of a nearby, store needs it. Grocery stores and stores, convenience stores, hospi- dependable supply of quality prod- restaurants expect and insist on tals, schools, nursing homes and ucts is critical in developing and dependable service. If local produc- other food services can eliminate maintaining these markets. Local ers can’t deliver, other suppliers the wholesale buyer or food broker products have market value to retail will be found. One way to attract from the marketing chain and may stores and restaurants buyers seeking greater volume is to get the product to the consumer provided the product is pool your product with other fresher and faster. These businesses of high quality and producers. may be willing to buy a variety of available when the items locally based on their interest and support of community farms. The personal touch of a direct mar- keter can help win over the food- service buyer, as can attractively packaged unique, local products. Determining business feasibility and marketing goals

Before you build a identification of your customers and standing of business and marketing roadside stand or knowing how to satisfy them can principles. Many sources of help are design a brochure help you solidly launch your busi- available. Talk to potential cus- for your farm, you ness and keep up with changes in tomers to help identify your market. should determine the marketplace. Consult with other direct marketers 12 the feasibility of your proposed busi- The checklist included here can and county Extension agents. Check ness and outline a marketing plan. be the basis for your marketing plan the sources of information cited at While even the best plans are no As you complete the checklist, you the end of this publication. Contact insulation from climatic catastro- may find you need outside help to your local Chamber of Commerce. phes and fickle markets, thorough increase your knowledge and under-

This table shows one way to visualize a marketing plan and keep up with changing trends in marketplace. Fill in the columns from left to right to outline how you wish to improve the different aspects of your business. Fill in the “Evaluation” column with positive or nega- tive results to help you determine whether to revise your strategies or objectives: Make general conclusions based on more detailed observa- tion and analysis of your business. Outlining a marketing plan this way can help you set goals and periodically review your operation.

MARKETING PLAN MARKETING SITUATION MARKETING OBJECTIVES MARKETING STRATEGY EVALUATION

PRODUCTS Varied produce Add “gourmet” deli Grow apples, popping New items are selling (sweet corn and other foods, other fruits, corn, pumpkins. well. Farm is showing a vegetables, berries) bakery, beverages. Procure rest. profit.

CUSTOMERS Families Attract more affluent Provide an attractively People are staying families. landscaped eating and longer and spending Have “gourmet” resting area. more. recreation, too.

CHANNELS U-pick, produce store Offer customers other Try special events Events are too much enjoyable sales (Easter egg hunts, work. Have only one per channels. pumpkin festival.) year.

COMPETITION Grocery stores, Match stores on Improve quality, Survey shows more farmers’ markets, quality; other farms on cleanliness, people are satisfied, other farms quality and atmosphere. repeat customers. atmosphere.

ADVERTISE Classifieds, signs, Try newspaper display Contact newspaper Ad drew many handbills, radio ad, feature story advertising rep and customers. promoting new editor. Editors interested in story for next spring. atmosphere. MARKETING PLAN CHECKLIST

PRELIMINARY ANALYSIS INTERMEDIATE ANALYSIS DETAILED ANALYSIS — Do you have the personali- — Have you identified your — Have you kept detailed ty and experience to adapt market? (i.e., by surveying profit and loss records or to and enjoy small busi- potential customers, talk- have you estimated profit ness ownership and ing to the competition and and loss projections for management? reading trade publications) your new business? — Is there an obvious demand — Does your market include — Have you developed a 13 in your area for something enough customers who will pricing strategy? you produce or want to purchase your product? produce? — Do you have a detailed — Are customers willing to advertising plan and — Is your production process travel to your location? budget? free of flaws? (i.e., inspec- Can they get there easily? tion, storage, handling, Will you deliver? — Do you have a way to mea- pest control) sure the effectiveness of — Can you provide the types your advertising? — Can you expand your and qualities of products acreage if necessary? they want to buy? — Have you met with a lawyer and insurance agent to — Are you zoned to sell — Do you know the average identify your liabilities and commercially? income of people in your determine how to cover area? them? — Do you have adequate support staff? — Do you know who your com- — Have you reviewed your petitors are, and what marketing plan with a — Do you have a financing makes your product or reputable business plan? service unique? management consultant? Do you have a preliminary — — Are your competitors profit and loss statement? successful? Does it look profitable? — Do you know why any are — Can you compete with not? similar markets in your area? — Have you determined your projected market share? (What percentage of your potential customers are already buying from and seem happy with the com- petition? Are there enough people remaining to support your enterprise?) — Are you aware of marketing trends? (i.e., labeling prod- ucts “organically grown,” promoting recyclable or reusable containers, stressing freshness and quality over price.) — Have you secured all nec- essary state and local permits, tax forms and other contracts? Financial planning

Good financial employee turnover?) You need an Fixed costs records help start a annual profit/loss statement for tax business on the purposes. • Taxes, licenses and fees right track, help You need a balance sheet, or • Accounting and legal guide it along suc- statement of assets (what you own) 14 fees cessfully, and can deter errors and and liabilities (what you owe), to • Insurance fraud. show the overall financial position • Mortgage You need to initially estimate of your business at a specific point • Remodeling and then keep track of your fixed in time. • Purchased vehicles and and variable production costs to Seek professional advice from equipment help you price your product and accounting services and other busi- • Building and equipment continue making wise decisions to nesses if you need help developing depreciation ensure profit. and analyzing profit/loss statements, • Estimated crop and A monthly or quarterly balance sheets and other records. business losses from profit/loss statement is your budget Successful Roadside Marketing, listed bad weather and will help you pinpoint areas for in the references section at the back change. (i.e., Are you overspending of this publication, has a section Variable costs on advertising? How much of that that includes sample profit/loss • Seed, fertilizer and money can you transfer into statements and balance sheets. chemicals increased wages to minimize • Irrigation • Leased vehicles • Rented vehicles and equipment Know your fixed and variable costs • Fuel, repairs and maintenance • Telephone, utilities, You should delineate expected steadier profit, you can invest more postage fixed costs from variable costs to in the business. • Containers, other help you estimate what your costs Following are the annual fixed marketing supplies will be at any level of production. and variable costs to estimate before • Advertising supplies and Variable costs go up or down pro- you do any pricing and selling. costs portionally with your production. Estimate each expense in dollars ini- • Wages paid Fixed costs stay the same whether tially, and then keep track of • Salary allowance for or not you sell a single turnip. Your expenses in dollars and as a percent- farmer and family goal, especially if you are just start- age of net sales: Competitors typi- • Workers’ insurance and ing out, should be to minimize cally disclose percentages and ratios compensation fixed costs and maximize variable rather than dollar figures when • Product spoilage, costs. You can’t avoid some fixed comparing their operations with damage and pilfering costs, like taxes, licenses and fees. one another. (i.e., If grocers and (by employees or But other typical fixed costs can be other direct marketers on the aver- consumers) transformed into variable costs: age spend 2 to 3 percent of their Hire a delivery service instead of gross sales on advertising and you purchasing another vehicle, or rent are spending 10 percent, you may a transplanter instead of buying be overspending in this area.) one. As you show greater and Regulations

Direct marketers food production and protection, unless the food is protected from must be familiar weights and measures, packaging dust, insects and any other unclean, with and comply and labeling, and food advertising unhealthy or unsanitary condition. with state and fed- and trade practices. To prevent contamination, equip- eral food laws. In Wisconsin’s Food Law, ment need not be elaborate, but it 15 Wisconsin, the Department of Chapter 97, states that only safe and must be suitable for the type of Agriculture, Trade and Consumer wholesome food can be offered for product being sold. Protection (DATCP) is responsible sale. It is illegal to manufacture, pre- for administering laws concerning pare for sale, store or sell food

Obtain necessary permits

Wisconsin direct marketers do blends, because these items are not for contaminants or composition not need a special license to sell in their natural form. requirements. DATCP inspectors non-processed food products, like You don’t need a sales tax typically visit direct marketing melons or apples. However, if the number and sellers permit from the operations if warranted by cus- melons are sliced or the apples are Wisconsin Department of Revenue tomer complaints. caramelized, a special food proces- if you sell only farm produce, but For more information on nec- sor’s license is required. you do if you sell other taxable essary permits, food laws and other No license is needed to sell items. direct marketing regulations, con- honey, apple cider or maple syrup, State requirements that affect tact the Wisconsin Department of but a license is required to sell bak- direct marketers may include Agriculture, Trade and Consumer ery items, jams and jellies, salad inspection of sales or processing Protection, 801 W. Badger Road, starters, vegetable medleys, trail facilities, review of labels on pack- Box 8911, Madison, Wisconsin mixes or other food mixes and aged food products, and the collec- 53708, (608) 266-7184. tion of food samples to be analyzed

Sell by weight or volume?

The same weights and mea- The law in all states is that liq- Chapter Ag. 54 of Wisconsin’s sures laws apply to direct marketers uid commodities shall be sold by administrative code provides rules of farm produce as they do to all liquid measure and non-liquid for selling fresh fruits and vegeta- other retailers. Scales must meet commodities shall be sold by bles. Some, like apples, corn and standards for commercial scales set weight. The law permits other cantaloupe can be sold by weight or by the National Bureau of methods of sale only where the count, while others, like asparagus, Standards. It is not unusual for a method is in general use and does beans and potatoes must be sold DATCP inspector or city inspector not deceive the consumer. One only by weight. to find and impound a non- exception is eggs. They are sold by If an item is packaged before commercial scale. If a commodity is both count and size. Closed con- sale it must be labeled according to weighed at the time of sale, the tainers of apples must comply with the requirements of Chapter 53 of scale’s indicator must be visible to the USDA grade standards, which Wisconsin’s administrative code. the consumer. must be stated on the container. The label must list the name of the food, any ingredients other than the When a direct marketer adver- raw product, the net weight, liquid tises any pre-packaged food product measure or count as required, (met- and includes the retail price in the ric translations are optional but may advertisement, the ad must list the be helpful in targeting certain eth- package contents by weight or nic markets), the name and address volume or state the price per of the processor, packer or distribu- measurement unit (such as $1.25 tor, a declaration of quantity and per pound). any other information required by For more information, contact 16 law (such as grade and sizes for DATCP’s weights and measures eggs). No quantity declaration is division at (608) 266-7244 . required for packages weighed at the time of sale and for clear packages of six or fewer fruits or vegetables, if the fruit or vegetable is sold by count. If all packages are of uniform weight or measure, an accompany- ing placard can furnish the required label information. Merchandising

Successful direct judiciously invest time, money and marketers think creativity in pricing, advertising, like consumers and displaying and packaging their adapt production products in the best possible light. and products to 17 consumers’ wants. These marketers

Pricing

Pricing is based on both Adjust prices cautiously Pricing considerations production costs and the marketing After setting base prices for Studies show consumers care environment. It is one of the most individual items, adjust prices $ about quality (freshness, fla- difficult challenges direct marketers based on nearby grocery stores and vor, color) more than price, but still face. competing direct marketers. (Your expect lower prices for directly mar- Direct marketing allows net adjustment will need to be an keted produce than from retail greater flexibility for pricing than increase over your initial base price produce. most other farm product markets. per pound, otherwise you need to Listen to your customers and While competitive price levels are decrease costs to make a profit.) $ evaluate their comments and important, try to start with a per- Many direct marketers can sell bulk complaints. Your prices may be too centage markup above your docu- items at 15 percent lower than gro- low if you have no complaints or if mented costs and keep your prices cer’s retail prices. Few direct mar- you are selling out too early. between wholesale and retail. keters sell at 30 percent higher than Your total production costs Price according to product the competition, unless their quali- $ (fixed and variable) determine the desirability and availability ty is exceptional or they offer other lowest price at which you should to the consumer. If everyone else is consumer incentives. Whatever you sell your product, before taking selling sweet corn in your area, you do, don’t undercut your competi- into consideration other marketing may have to charge less for it. tors just to get more business. And factors, like competition and prod- Products that only you sell can don’t specifically advertise that uct demand. Check with non- command a premium price. your prices are less than your clos- competing direct marketing opera- est competitor’s. This could result Are your buyers likely to tions to estimate how much prod- $ in a price war and you could price switch suppliers based on uct you can reasonably expect to each other out of business. small price differences? If so, devel- move in one month, and to make Keep track of your monthly op consumer loyalty through sure you are producing enough income and expenses to quickly friendliness and helpfulness. Offer product to meet potential demand. assess whether you need to modify special services, like a “freebie” card Then, divide your monthly produc- your operations to show a profit. good for a free pound of produce tion costs by total pounds of pro- Making financial decisions off the with every 20 pounds purchased. duce expected to sell in a month to cuff and ignoring market influences Post your prices clearly and best determine your lowest price can kill your fledgling business. $ allow customers to view cash per pound. Adjust prices for specif- register displays. ic items up or down, but make sure your average price per pound will $ Set prices at the beginning of still cover production costs. the season and stick to them. Customers who expect to pay the same price for snap beans all season may be unpleasantly surprised if you make them boost their bean Emphasize your product’s If your product has close budget. Similarly, price slashing $ uniqueness over price. Sell $ substitutes, know what the toward the end of the market period variations on common items—like substitutes cost. If you cultivate creates customers who will expect miniature carrots or specialty beans. Christmas trees, know what people reduced prices in the future. Try growing fresh herbs, Asian are paying for artificial trees. If you Even if competition is low vegetables or edible flowers, like sell dried apples or other fruits as $ now, do some investigating. colorful nasturtium. Offer recipes to snacks, check out prices for com- Do current market trends indicate make products more desirable. mercially sold apple chips, fruit rolls that new producers may enter your Advertise apples that were and similar snack foods. Even 18 market and compete with you? If so, “fresh-picked this morning,” or different common vegetables, like build customer loyalty based on green peas that are “extra sweet.” corn, peas and beans can be viewed things other than price. as substitutes for one another by consumers.

Advertising

Among Wisconsin’s farmers’ your ad in the shoppers, newsletters Newsletters market producers, 87% use paid and magazines your potential cus- Directly mailing newsletters or advertising, with newspaper ads tomers are most likely to read. postcards to customers can help you purchased most frequently. But Publications should have a cir- keep in touch, especially if you run good word-of-mouth advertising is culation within a 30-mile radius of a home delivery business. It takes what direct marketers say is the key your farm. Run your ad every week time to build a mailing list, so get to long-term success. of the harvest season. People need into the habit of asking every cus- Good word-of-mouth requires constant reminders before they tomer for their name and address at satisfied customers. Since people are decide to visit a business. the point of sale. Get addresses off more likely to spread complaints Don’t forget free advertising. checks, if you accept them. Contact about a business rather than praise, Ask your paper’s editor or local TV clubs and organizations for mem- the importance of good customer reporter to do a story about your berships lists. Be prepared to pay for relations cannot be stressed enough. new pick-your-own business, your mailing lists. Get into the habit of asking your unique product or an upcoming If you do a newsletter, be cre- customers how they found out event on your farm. ative with content. Your customers about your business to gauge the Radio is effective and immedi- will enjoy information about crop effectiveness of word-of-mouth and ate. Call your local station to progress, availability and price other advertising. announce upcoming events. Even a changes, as well as friendly, conver- rain cancellation announcement sational articles about life on the Mass media still gets your business’s name on farm, general topics like nutrition, Paid advertising complements the air. Flyers, handbills or and special events. One Wisconsin word-of-mouth advertising. brochures can inform customers subscription farm’s newsletter fea- Customers who hear about a busi- about other services and events tured an informative “Bug of the ness through many different sources related to your farm. Try distribut- Month” column. The newsletter often have a better opinion of the ing these through area hotels and also spiced up the appeal of a com- business even before they visit. If resorts, restaurants, tourist informa- mon garden vegetable by promot- you purchase a newspaper classified tion centers, and community ing an upcoming “Zucchini Fest,” or a more expensive display ad, bulletin boards. complete with a zucchini bread include your business’s name, logo, bake-off and “mega-zucchini log hours and phone number in the ad. toss.” Other attention getters include Whether you produce a fancy examples of produce and statements printed piece or send out neat of organic growing methods. Place copies of a typed newsletter, put black on yellow or orange, yellow or promote vegetables and recipes your customer’s names in print orange on navy blue, and green, red popular in other countries, and “art often. Include your address and ask or navy blue on white. To be visible fairs on the farm” for selling people to send their favorite recipes, at 50 feet, letters should be at least decorated pumpkins, corn, gourds poems, stories, suggestions and 13⁄4 inches high. To be seen at 100 or other “country-style” crafts. questions—anything that might feet, paint them 31⁄2 inches high. Promote special activities for interest your readers. For 200, 300, 400 and 500 feet, try children, such as spring visits to see You can also include coupons 7, 11, 14 and 18 inches, respective- baby animals, or a Halloween in your newsletters, or hand them ly. Brush strokes should be 1⁄5 as haunted house. Contact teachers to out with sales at a farmers’ market. wide as the letter’s height. set up school field trips, then give 19 Offer people product samples. Let Give people time to slow students coupons they can use on customers know you have gift cer- down. Cars traveling at 30 miles an subsequent visits with their parents. tificates. Encourage “spin-off” sales: hour need 2⁄10 of a mile to slow Use themes, like holiday decora- Sell home canning supplies along- down safely. At 40 mph, they need tions and costumes, to enhance the side your tomatoes, pie crusts with 1⁄4 mile. Vehicles moving at 50 mph “country flavor” of the business. 3 your cherries, whipped cream and need ⁄10 mile to slow down and Start a “two-year” club, where shortcakes with your strawberries, those at 60-65 mph need 4⁄10 to half loyal customers receive a congratu- corers and caramelizing kits with a mile. If they’re going a lot faster latory letter and certificate for free your apples, and doughnuts with than that, they probably don’t have produce. People love recognition, so your cider. time to stop at your market. put their names on a special “two- year club” poster. Signs Special promotions and events Advertising, like the rest of the Signs are most important to Special events and promotions business, should start small. Try one roadside marketers and pick-your- keep your business’s name in the or two advertising or promotional own operators. They inform people forefront and show your customers ideas at a time. It will be easier to of location, business hours, special you appreciate them. Special events measure each method’s effectiveness promotions, seasonal products and can include wine or cheese tours and will keep you from overspend- other attractions. Develop a name and tastings, fall cider pressings, ing your profits. and logo to distinguish your opera- Easter egg hunts, ethnic festivals to tion from other farms. Paint all your signs with the same design and colors and keep them in good repair. Federal, state, county and township roads may have rules regarding sign size and distance from highways. Consult with highway officials before creating a sign. Sign vendors are listed in the Yellow Pages. If you make your own signs, use color, high contrast and large letters to grab the attention of motorists. Some of the easiest-read color combinations are Display

20

After word-of-mouth or paid Here are some tips: • Keep aisles at least 5 feet wide. advertising attracts the customer, • Display only the highest quality • Use words like garden, fresh, fla- your overall display should further produce—restock frequently. vor, natural, homegrown, juicy, enhance the product image to the • Display products at convenient firm, farm, select, vine-ripened, customer. To create effective dis- heights and depths so customers fresh-picked, organic and orchard plays, borrow ideas from grocery can easily see, touch and smell on your display signs if they accu- stores and other direct marketers. them. (The average customer is rately describe your produce. between 5’4” and 5’6” tall.) • Display your products in the best BAG BIT: • Alternate colors for visual appeal. possible light—low glare fluores- Help alleviate Wisconsin’s prob- cent lamps work well indoors, • Keep shelves no deeper than 2 feet lem of disappearing landfill space flood lights outdoors. Paint ceil- from front to back. by encouraging people to bring ings flat black or brown and use their own shopping bags to your • Place empty wooden containers or spot lighting to highlight business. Or, if there’s room in other supports beneath your pro- individual displays. your promotional budget, sell duce to give shelves a fuller look • Try a mix of packaged and bulk reusable cloth shopping bags without overstocking or bruising. items for visual appeal. imprinted with your market’s • Spread high-demand items • Label prices clearly. name and logo. around, to encourage shopping the entire store. • Display product information (brochures, recipes, samples). • Display your business name and Successful Roadside Marketing: and vegetables, how to build and any trademark on labels, A Manager’s Manual, listed at the display fruit baskets, and how to containers and signs. back of this publication, offers market potted, bedding and woody detailed information on how to plants. handle and display individual fruits

Sell by package or bulk?

21 Most successful enterprises use Packaging advantages Bulk advantages a combination of both prepackaged • Helps maintain freshness • Consumer can choose quantity and bulk goods to fit their needs. • Convenient way to sell small • Consumers tend to buy more of fruits and vegetables certain items (i.e., nuts, dried • Can enhance product, market fruits) appearance • Enhances market’s “home grown” • Customer convenience— image eliminates weighing and pricing • Less refrigeration needed for bulk • Seller convenience—easier to produce move items around, less work at • Reduced labor involved with checkout packing • Way to list price, seller’s name • Reduced cost for packaging and address, recipes and other supplies information • Less product damage Other management concerns—employees, liability and market assessment

Hire qualified people

Friendly, alert, well- Wisconsin’s Department of • Correct employee errors immedi- 22 trained salespeople Industry, Labor and Human ately or they will be harder to fix and other employ- Relations can also assist you. You later on. ees can build your need to keep accurate, detailed writ- • Ask an experienced employee to sales volume even ten records on many labor manage- train a new one. more than the best advertisements ment issues for both state and feder- or displays. Lazy, inattentive or irre- al government tax purposes. • Explain rules of conduct and sponsible help can destroy your Before you hire anyone under safety to help avoid lawsuits. business. 16, contact the U.S. Department of • Train employees to do multiple You may need to hire outside Labor ’s Occupational Safety and tasks. You may need more help in your family to ensure adequate sup- Health Administration (OSHA) certain areas at certain times. port. The more time you spend office in your area for a list of legal • Encourage communication, screening applicants, the better you farm occupations and other jobs for creativity and participation. can predict employee ability and children under 16. • Praise people often for their good behavior on the job. Check with work. your state or federal labor office for Training and motivating tips information on hiring suitable • Teach your employees as much as • Provide pay incentives such a employees, employee safety guide- you can about the business—its raises, profit-sharing and bonuses lines, laws and reporting require- history, philosophy, products and for good service and hard work. ments for wages, workers compensa- methods—so they can answer • Address performance problems by tion, payroll tax requirements and customers’ questions. showing personal concern for social security. employee’s well-being, not just your profits.

Minimize liability

Farmers risk losing buildings, employees can result in financial • False shoplifting accusations. equipment, cars, trucks and other ruin. Liability can arise from many • Offensive language in front of cus- property to fire, flood, wind, theft situations, including the following: tomers. and vandalism. More difficult to • Personal actions or negligence by grasp than physical loss due to acts • Verbal or physical abuse or sexual the direct marketer, the marketer’s of nature or crime is personal loss harassment. family, and any employees. due to liability. Farmers who Liability insurance is inexpen- become direct marketers increase • Trespass or injury by livestock. sive compared with the potential their exposure to potential liability • Defective machinery, equipment costs if a customer is injured on lawsuits. or other unsafe conditions on the your property, whether you are at A direct marketer’s liability premises. fault or not. Pick-your-own opera- (responsibility) for careless acts or tors are especially vulnerable to law • Defective or contaminated prod- negligence (failure to act) that causes ucts, chemical residue on produce illness or injury to customers or that causes illness. suits. Every direct marketer should areas of your operation regularly, consult with a professional insur- conducting frequent employee ance agent to secure the liability training and information sessions coverages needed for the business (especially if the business is grow- and its employees. ing), and meeting with your Some practices to help you insurance agent annually to update avoid liability include inspecting all coverages.

Assess your market 23

As your direct marketing busi- • What do you dislike? Cater to the customer ness grows, keep abreast of market- • What are your suggestions for Personal selling style is very ing trends. If your strawberry or new products and services? individual and direct marketers sweet corn sales are dropping off, Contact your county need a sense of the best approach seek and promote more unique Extension agent for additional help for different customers. Certain crops. Or consider adding value to on customer assessment and sur- customers value and want assis- your product by promoting special veys. tance. Others do not. Either way, services such as home delivery. you must be pleasant, courteous You are responsible for devel- Prevent common complaints and informed. oping your own market. You can’t Poor directions are usually the You and your staff must value rely on permanent market situa- number one complaint. Include a and cater to the customer. Even if tions or government programs. You map or clear directions to your your products and services are tops, must constantly study your poten- farm or stand on all your advertis- family members and hired employ- tial and evaluate the successes of ing. Another common complaint is ees with inattentive or bad attitudes other markets. Subscribe to trade uncleanliness. Frequently ask cus- will discourage purchases and publications and talk to other pro- tomers if they think your operation repeat business—the life blood of ducers. Be willing to change your is tidy or if they have suggestions any successful direct marketing operations if the market warrants on improving cleanliness. operation. it. Seek cooperation from other Misrepresentation is a frequent Employees should be able to growers to share equipment costs, complaint. Don’t advertise your answer most questions or be able to knowledge and experience. Don’t produce as “home-grown” unless obtain answers for customers. A go it alone. all of it is. Don’t advertise your response of “I don’t know” may be Evaluate your customers needs growing methods as “organic” if translated by the customers as, “I and wants by talking to them, by you use non-organic chemicals or don’t care,” and the sale may be displaying a suggestion box with fertilizers in any phase of produc- lost to a competitor. Everyone paper and pencils, or by conduct- tion. involved in your business must ing formal surveys by mail or tele- Customers also complain show your customers that they are phone. When asked, people are about mixed sizes sold together or valued and appreciated. Your busi- generally happy to share their feel- varying degrees of ripeness sold in ness depends on it. ings about a particular business. one package. Separate sizes and sell Avoid “yes” or “no” survey ques- them at different prices. Avoid sell- tions. Provoke more thoughtful ing overripe produce. Use your responses with questions like: judgment. Never sell unattractive • What do you like about the food or food you would not eat products and services we yourself. presently offer? Sources of help

County Extension offices Technical and adult education Supporting services County Extension agents pro- The vocational, technical and As producers consider or vide educational program assistance adult education college districts in expand direct marketing, the need in production of farm products and Wisconsin offer one and two year for production, marketing, finance 24 farm business management and agricultural curriculum. A six-year, and management expertise increas- marketing. As a business, direct 18-credit farm business and es. As with all business, supporting marketing requires knowledge of production management program is services are important to success and record keeping, budgets and available to producers who want to survival. These services include financial management. Crop and continue their education. Each dis- accounting, tax, insurance and legal livestock budgets are essential along trict also offers workshops and semi- services, management consultants, with consideration of market nars on topics such as sales effective- and friends who run small potential for the product. Computer ness training, taxes and small busi- businesses. programs can help ness, and starting and managing a Helpful government depart- estimate production costs for veg- business. Call the technical college ments include the Wisconsin etables, fruits, and alternative crops. in your area for more information. Department of Agriculture, Trade The Extension faculty team and Consumer Protection, the frequently includes agents working Other direct marketers Wisconsin Employment Relations in economic and community Direct marketers are generally Department, the Wisconsin development. Business development willing to share business ideas that Department of Revenue and the assistance includes feasibility work and also those that have failed. Wisconsin Department of Industry, seminars for entrepreneurs The majority welcome potential Labor and Human Relations. These marketing help and individual direct marketers, particularly those state and local government offices business counseling.The County outside their own marketing area, to are listed in your telephone book. Extension office is the local entry meet with them and discuss mutual Also try your local library for books point to the University of interests. A fellowship and informa- and trade publications. Consult Wisconsin System faculty resources. tion network of direct marketers other marketer’s catalogs and Anyone considering alternative from across the United States has brochures, as well as the references enterprises and markets is developed between people who listed here. encouraged to access these attend the National Farmers’ Direct resources. Offices are located in Marketing Conference every each of Wisconsin’s 72 counties. January. Call John Cottingham at Look in your telephone book’s (608) 342-1392 for more blue county government pages. information about the conference and network. References

Periodicals Fruit and Vegetable Clip-Art for Sell What you Sow! Direct Marketers Gibson, Eric American Fruit Grower (monthly) Dixon Springs Agricultural Center 1994, New World Publishing 37733 Euclid Avenue Rte. 1, Box 256 3701 Clair Drive Willoughby, Ohio 44094-59922 Simpson, Il., 62985 Carmichael, Ca. 95608 American Vegetable Grower 25 A Grower’s Guide to Marketing Successful Roadside Marketing: A (monthly) Fruits, Vegetables and Herbs in Manager’s Manual 37733 Euclid Avenue Illinois Beech, R. Willoughby, Ohio 44094-5992 1990, University of Illinois at 1976, Cooperative Extension Direct Marketing Newsletter Urbana-Champaign College of Service (6 per year) Agriculture Michigan State University Bulletin Cooperative Extension Programs Cooperative Extension Publications Office University of Wisconsin-Extension 69 Mumford Hall 10B Agriculture Hall East Lansing, University of Wisconsin-Platteville 1301 West Gregory Drive MI 48824-1039 Platteville, WI 53818-3099 Urbana, IL 61801 (Back issues are also available) Managing for Success: A Manual Organizations Fruit and Tree Nuts for Roadside Markets Madison Area Community (3 per year, plus yearbook) Beierlein, Dr. James Supported Agriculture Coalition Situation and Outlook Report 1986, Department of Agricultural 324 Norris Court #11 P.O. Box 1608 Economics and Rural Sociology Madison, WI 53703 Rockville, MD 20849-1608 Pennsylvania State University 107 Armsby Bldg Wisconsin Fresh Vegetable Vegetables and Specialties University Park Growers Association (twice per year, plus yearbook) Pennsylvania, 16802 Karen Upper Situation and Outlook Report 8454 Hwy 19 P.O. Box 1608 Marketing Fresh Fruits and Cross Plains, WI 53528 Rockville, MD 20849-1608 Vegetables How, Brian R. Wisconsin Organic Crop Books and bulletins 1991, Van Nostrand Reinhold Improvement Association New York, NY 10003 C/O Dave Engel Facilities for Roadside Markets Box 52 Pick-Your-Own Farming: Cash Selders, Arthur W. and others Viroqua, WI 54665 1992, Northeast Regional Crops for Small Acreages Agricultural Engineering Service Wampler, Ralph L., and James E. Wisconsin Organic Growers Cooperative Extension Resource Motes Association Center 1985, University of Oklahoma C/O Fay Jones 7 Cornell Business and Press, Norman, OK Rte. 1, Box 160 Technology Park Second Edition Spring Valley, WI 54767 Ithaca, NY 14850 Produce Handling for Direct Wisconsin Apple Growers Marketing Association Farming Know-How—Guidelines Bartsch, James A. and Roger Kline 850 Tipperary Road to Better Family Farming: Pick 1992, Northeast Regional Oregon, WI 53575 Your Own—Another Marketing Agricultural Engineering Service Option for Michigan Fruit and Cooperative Extension Resource Wisconsin Berry Growers Vegetable Growers Center Association Antel, Glen 7 Cornell Business and S 8170 Kassner Drive #26 1978, Cooperative Extension Technology Park Merrimac, WI 53561 Service Ithaca, NY 14850 Michigan State University Bulletin Office 10B Agriculture Hall East Lansing, MI 48824-1039 Authors: All authors hold appointments with University of Wisconsin-Extension, Cooperative Extension: John Cottingham is professor of agricultural economics, and agricultural marketing specialist, University of Wisconsin- Platteville; James Hovland is professor of community resource development, Fond du Lac County; Jordana Lenon is publications editor, Cooperative Extension Publications; Teryl Roper is professor of horticulture, College of Agricultural and Life Sciences, University of Wisconsin-Madison; Catherine Techtman is associate professor, com- munity resource development, Iron County. Illustrations on pages 19 and 20 by Nancy Lynch. Produced by Cooperative Extension Publications, University of Wisconsin-Extension. University of Wisconsin-Extension, Cooperative Extension, in cooperation with the U.S. Department of Agriculture and Wisconsin counties, publishes this information to further the purpose of the May 8 and June 30, 1914 Acts of Congress; and provides equal opportunities and affirmative action in employment and programming. This publication is available from your Wisconsin county Extension office or from Cooperative Extension Publications, Rm. 245, 30 N. Murray St., Madison, WI 53715, Phone 608-262-3346. A3602 Direct Marketing of Farm Produce and Home Goods I-03-94-3M-350-S