Tuesday, June 07, 2011

Price Taker or Price Maker?

From page 83 of Success on the Small Farm by Haydn Pearson ::
For every hundred men who are good producers of the scores of products that come from America's farms, only a few are good salesmen. 
The profit made on a farm depends upon the marketing ability of the farmer. For about a century now, farmers in general have labored under an economic handicap that no business except farming could survive. That is, farmers have sold their products at wholesale-price level; they have bought their equipment, grain and, in most instances, from 75 to 90 per cent of their food at retail-price level.
An interesting quote from 1946 ... something to think about at least ...

5 comments:

Anonymous said...

Sustainability lives on the edge of the razor. "Excess" isn't sustainable.

Way too many people in this country don't understand that 2/3 of the world's population lives on $3/day or less. This is the baseline to compare against, not some corporate salary, or even what we believe is the humble "middle class" salary.

Like anything else, if everyone could make a living doing something then EVERYONE would be doing it. But, clearly, that's not possible, as who would be the "consumers" of the product? Selling ice to an Eskimo: If everyone around me were raising chickens I doubt that I'd be able to sell eggs or chickens to them!

At some point the word "competitive" is indistinguishable from that of "sustainable." I suppose that what our mission is is to keep pushing toward that carrot of sustainability. As we push forward others will drop out: and at some point we too will drop out (either due to failure of not being sustainable enough or of life's clock running out on us).

Feed as many people as you can, as honestly as you can, and for as long as you can...

Scatteredeggs

Walter Jeffries said...

"Farming is a business where you buy at retail, sell at wholesale, and pay the shipping both ways."
-Unknown Author

and

"Farming is the worst way in the world to make a living but it's the best way in the world to raise a family." -farmer Matt Farmer of Lamesa, Texas quoted in Los Angeles Times article VNews 20110530C

(Yes, Farmer is really the last name of that Farmer.)

Donna OShaughnessy said...

We self marketed so well that our farm grew too fast. Our solution ? We're selling it. Selling it all and marketing it for the wonderful farm business it is. Next ? We are going to homestead 100%.

Walter Jeffries said...

Scatteredeggs wrote:
"Like anything else, if everyone could make a living doing something then EVERYONE would be doing it."

That is patently false. It ignores the differences between people. We each start out with different abilities and inclinations. Through environment we are further shaped. By the time you get to adulthood you can not necessarily succeed at what someone else may find easy.

"Feed as many people as you can, as honestly as you can, and for as long as you can..."

Agreed.

Loren said...

Next time you're at a market, note how many farmers are sitting...quietly...behind their tables...not selling. I want to kick their chairs! If farmers markets were just a little more like used car lots, farmers would earn alot more money and more people would be eating more healthy food. There is nothing wrong with standing in your booth, in front of your table, speaking to people as they pass by. Drawing them in, closing a deal.

Farmers work so hard to raise the food that they sell, but often they act as if the work is done once the truck is unloaded at the market. Not so! Farmers, SELL your stuff. SELL your product and the SELL the buying experience for which people come to the market. Don't wait for someone to stop and chat. Drag them into your booth, show off your product. Know ahead of time, what you want to say about your product.

I am a farmer too. I love raising the animals and teaching my kids how to farm - but it is just as important to teach your kids how to sell. I know it sounds ugly, but it is an important skill. Selling is about listening and being able to relate your strengths to people in a way that matters to them.

What the post said about "The profit made on a farm depends upon the marketing ability of the farmer." is too true. If we farmers spent as much time thinking, pondering, dicussing, and blogging about sales/marketing as we did about ag issues, we'd be miles ahead of where we are.

SweetSixteenfarm.com

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