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stargazer_1118

Starting an organic farm

stargazer_1118
15 years ago

I am starting an organic farm with mostly heirloom veggies. My problem is how do I price my produce for wholesale? I am also going to have a stand on my property but I need to find out local wholesale prices. Can anyone help me?

Thanks!

Comments (12)

  • Kimmsr
    15 years ago

    To know what to charge you need to know your cost of production per unit and add in something for your profit, or your labor. So if your total cost of preparing the soil, purchasing the seed, and what ever else necessary for getting a Cucumber ready to sell is $0.10 per Cucumber and a fair price for your labor is $0.05 per Cucumber then you could sell them for $0.15 each.

  • veggieholic
    15 years ago

    The best thing is to do a little sleuthing in your area. Kimmsr had good advice, you definitely need to find out your cost per item, but you should also set your prices to be fair and competitive with similar items available in your area. For example, if you are selling cucumbers, how much does an organic cucumber sell for in the grocery store? At the local farmers market? My guess is that will be much higher than your cost to produce a cucumber. You should discount somewhat from the price of the grocery store cucumber to give the customer a savings for buying it directly from you and losing out on that grocery store convenience, but you should still get a fair market price for your product. So it's basically two steps: 1. Make sure you get more for your produce than it costs you to make it and 2. Make sure you are not selling for MUCH less than everybody else (If at the farmers market all the organic cucumbers are going for $2, and you're selling yours for $0.50).

  • pagardner
    15 years ago

    In March this year I attended an organic forum sponsored by Penn State University. The owner of a small farm taught a course on this exact subject. The farm is the remainder of a much larger farm left with only 14 acres, 7 producing currently. It is the co-op idea where members pay a yearly fee up front and receive the produce as it matures throughout the season. Each member pays 700.00 and total membership of just under 200. People are waiting in line to join. Do the math, this small operation is making noney. It was difficult to get it off and running and almost failed according to the owner. Rather than I explain the whole thing, the web site is below. Worth the look. Anybody with 3 or more tillable acres might get ideas. Best regards to all. Go to: www.maysiesfarm.org

    Here is a link that might be useful: maysies farm

  • softmentor
    15 years ago

    Charge as much as you can. -smiles his jolly smile- Don't be afraid to set your price high, you can always drop.
    That said, don't fall in love with your produce either. By that I mean, move it, even if you have to drop the price.
    It all comes down to what will the market bear?
    On another note, unfortunately very few consumers care that a tomato is heirloom or that it tastes way better. They don't like the look at the store and can't taste it at the store. So, they usually won't pay a premium and often won't even buy an heirloom if it doesn't look "pretty".
    It may take a long time to cultivate the market that appreciates them. Sometimes you can find a group of people who have a food buying co-op and they might take some.
    Also you can try health food stores or high end restaurants looking for something that really has flavor. they will take the time to taste a sample and then tell their customers.
    good luck!
    Arthur

  • softmentor
    15 years ago

    also, why do you want to know wholesale prices? If you are going to have a stand, you should be charging retail. Check your local supermarkets and adjust price a little up or down from there. If you need to move it, drop the price. If it's selling keep the price up.
    It helps in that kind of stand to have something you are known for. "they have the best :fill in the item: and they sell them so cheep" but then keep your prices up for everything else.

  • dirtslinger2
    15 years ago

    Wholesale is for someone selling to a middle man. And selling produce to a middle man will put you out of business this season.
    Sell direct to your market. It's the only way to go when farming small scale.

  • robin_maine
    15 years ago

    Selling to a middleman has a lot of advantages. Produce leaves the day of harvest. There's no need to be out of the field to wait on customers at a farm stand and no time spent off the farm at market.

    We sell both retail and wholesale. Some days I'd like to dump retail and stick with wholesale, some days it's the other way around. After everything's added up one doesn't net more money than the other on our farm.

  • heartflower
    9 years ago

    I put uo the words to translator. Im frum zurk. I have the vegtable farm and I have been it for three year. When its rear its not heard frum to put it on economy. My brother had it when he was a farm it couldd be remembered as a good leaf at the bad sofa. So the city had no slim at the gather. So next time just use hands and it is ok. Sorry.

  • elisa_z5
    9 years ago

    heartflower, that was a wonderful post -- the translator made it very funny, but I did understand you've been running a vegetable farm for three years, and that's awesome. :)

  • pnbrown
    9 years ago

    I wonder what the expression is that translated as "the good leaf at the bad sofa"?

    Regarding the OP:

    One thing to bear in mind is soil. I am over on the Vineyard, and have been closely involved with food production for quite a while. I have observed people doing it for a living up close. As a generality, in this area we have poor soil for food production. I don't know the Cape soils well, but I suspect it is about the same.

    The most a person can expect to get is whatever imported organic goes for at local retail, on average. Perhaps slightly more, but not much. It's amazing how much wealthy shoppers pay attention to prices. So then one is competing, with one's relatively poor soil and colder climate, with some of the best soils and climates in the world and with wage-earners on other continents.

    It only makes sense economically if one has property that is being taxed as vacant land at full rate and is planning to use the market garden activity to qualify for the state ag exemption.

  • FrancoiseFromAix
    9 years ago

    Can you go wholesale and retail ?

    I'm not in the veggies business, but in construction. When I started I sold to wholesales and they were a pain. I went to sell directly to users and alienated wholesales. I don't care because I prefer to sell to a lot of little customers rather than to a limited number of big ones. My point is, I couldn't have both. Big buyers usually don't agree with you being both a supplier and a competitor. Maybe they don't mind in Cape Cod because there are many rich people there then a lot of money rolling around which is good (for the rich ones and for the poor ones living off the rich ones)

    Those translators work funny. They will translate "dear francoise" with "expensive francoise" because they mix up the false friends with are the same word in one language with 2 meanings and translating in two other words in another ;-) I guess there are many false friends in Zurk.

  • shaxhome (Frog Rock, Australia 9b)
    9 years ago

    Very entertaining post from The Translator!

    But we do realise that the OP was from more than 6 years ago, no?

    Probably selling truckloads of vegetables to Walmart by now...