Pricing

Back to Business Functions

Pricing your products can be a difficult exercise. In the long run the price paid to the producer has to be enough to sustain the production and distribution costs, yet be low enough to allow a profitable retail (or wholesale) sales margin.  Factors involved in the pricing decision include the production and marketing costs, plus the 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?     

Best Business Practices

• You may not be able to charge a full "Farmers' Market" prices in every marketing channel.
• Estimate the cost of producing the product.
  • Center for Crop Diversification Budgets
    
• Estimate the cost of delivering the product.
• Research prices for similar products.
  • Center for Crop Diversification Price Reports
    
• Understand why buyers might value your product more than a wholesale products.
• Prepare to quote a per pound price.

         The Packer Pricing & Insight

University of Tennessee Guide to Pricing