Pricing

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Pricing your products can be a difficult exercise. In the long run, the price paid to the producer has to be high enough to sustain the production and distribution costs; yet it has to be low enough to allow a profitable retail (or wholesale) sales margin. Factors involved in your pricing decision include your production and marketing costs; plus your processing, packaging, and delivery costs. Just how much more should you charge for a “locally grown”, “sustainably produced” or “farm-fresh” product?  How much less than farmers’ market prices should you expect a restaurant to pay? These are all helpful questions to ask yourself. Below we have a variety of resources to help you answer these questions.       

 

Helpful Pricing Resources

Center for Crop Diversification Budgets: (large and small scale) linked here. Budgets are useful for planning your operation and identifying where costs occur. 

Center for Crop Diversification Price Reports: (for the farmer's market, produce auction, etc.) linked here. Check out the Three-Year Average Price & Quantities at Kentucky Produce Auction and the Three-Year Average Weekly Prices at Kentucky Farmer's Markets below. Price reports can be used as a great tool to give you an idea of what other producers are selling their product for and where they are selling.    

The Packer: Prices Around the Nation - linked here

University of Tennessee's Guide to Pricing: linked here and shown below. 

University of Vermont's Guide to Pricing Your Farm Product: linked here and shown below. 

   

 

 

 

 

 

 

 

 

 

Best Practices

You may not be able to charge a full "farmer's market" price in every marketing channel. 

Be sure to estimate your costs of producing and delivering your product. The budgets linked above are a helpful tool to use when doing this. 

Research prices for similar products. Price reports are very helpful in this aspect. 

Understand why buyers might value your product more tan a wholesale product - local, farm-fresh, etc.

Be prepared with quotes for your buyer. This is usually seen as a quote per pound price.