The farmers’ market is a great avenue to sell produce at your own terms. Unlike farmers who deal with bulk buyers like groceries and restaurants, you’re able to interact with your end consumers and readily adjust your pricing setup as you see fit. With that said, these farmers’ market pricing strategies will help maximize your sales and make the most out of your harvest. Know more about them by reading until the end!
1. Sell in bulk
This one’s an obvious classic. Offering discounts on bulk orders will encourage shoppers to buy more products from your stall. That being said, this pricing strategy will work best if you have a large volume of produce available. Moreover, the fact that it helps you stand out in a competitive environment doesn’t hurt, either.
2. Simplified pricing
With its easygoing vibe and friendly atmosphere, the farmers’ market is certainly no place for complicated pricing schemes. As such, try to price everything on your stand using a simple and uniform scheme. You can do this by selling pre-packaged quantities of different kinds of produce, with each portion having more or less the same value.
For example, you can have pre-weighed bags of different kinds of fruits and vegetables—with each bag having a value of $3. That means more items in a bag for cheaper products (say, a pound of tomatoes), while for more premium products, a $3 bag can contain a single piece or two. In the end, the goal of this strategy is to simplify and streamline your sales for faster product movement.
3. Offer bundles
This is one of the best farmers’ market pricing strategies if you happen to find yourself stuck with slow-moving products. Offering bundles will greatly help you achieve more sales. It’s great for minimizing your inventory after a day at the market, too.
For instance, if your stock of peaches isn’t moving fast enough, you can bundle them with your top-selling apples for a fixed price. Shoppers planning to buy apples will likely find this bundle attractive, especially if there are major savings involved.
4. Penetration pricing
We all have encountered introductory offers for new products at least once in our lives. This strategy actually has a name, and it’s called penetration pricing. Penetration pricing is a great tool to acquire new customers whom you can build lasting relationships with.
With penetration pricing, you’re sacrificing immediate profits in exchange for a wider customer base. The key here is to give your new customers an excellent experience to ensure that they’ll be repeat shoppers in the long run. In the end, the gains you’ll get from these farmer-customer relationships should far outweigh your initial losses.
5. Tiered pricing
Tiered pricing is one of the best farmers’ market pricing strategies because it enables you to keep more customers without sacrificing your margins. Also, if you’re selling different varieties of a single type of produce, tiered pricing could work for you. In this price strategy, you’ll assign different prices for each variety of produce.
For example, you can sell good ol’ Romaine hearts at $3/lb and then sell another less-premium lettuce variety (say, plain iceberg lettuce) at a lower price. That way, if someone who’s buying Romaine hearts wishes to pay a lower price, you can present the iceberg variety as a cheaper substitute. In conclusion, you get to keep the customer and close the sale without sacrificing your profits.
6. Loss leader pricing
In loss leader pricing, one product serves as the “sacrificial lamb” in terms of profits. With this strategy, you’ll offer one product at a bargain price in order to attract new customers. However, note that this strategy relies on the assumption that people shopping for the bargain produce will likely pick up other products along the way, which eventually increases total sales.
7. Early pricing
If you’ve never experienced being the first to market a seasonal product, you’re seriously missing out. Customers begin to look for summer produce the moment warmer weather kicks in. As such, if you’re the only one offering a seasonal product in the market, it will probably sell out really fast.
If you happen to find yourself in this advantageous position, maximize returns by putting a slight premium on the product in question’s price. At that point, you pretty much have a monopoly on one in-demand product, so you’ll have a bit more freedom as far as dictating the selling price is concerned.
Have you ever tried any of these farmers’ market pricing strategies before? If so, which ones do you find most promising? Let us know in the comments below!