Direct MarketingPrepared by:

L. Robert Barber, & Ilene Iriarte

For: Guam Cooperative Extension Service & Guam

Department of Agriculture

Funding provided by: United States Department of Agriculture Natural Resources Conservation Service, Western Region Sustainable Agriculture Research and Education,

Administration for Native Americans,, & Sanctuary Incorporated

Direct Marketing

• Market Directly to the Consumers– Keep marketing profits– Work as a middle man, less time farming

• Types– Roadside Stands– Pick Your Own– Community Supported Agriculture – Truck Neighborhood Delivery, Sales to

Chefs– Farmer or Flea Markets

Roadside Stands

• Can be simple as a pick-up on a roadside or as permanent as a year-round structure

• Benefits– Cash sales, immediate payment– Control over prices– Family labor– Receive feedback– Don’t have to pack, size, and label

Roadside Stands

• Disadvantages:– Zoning restrictions– Insurance liabilities– Health & Sanitation codes– Long hours (know when to be there)– Distraction from other farm duties

Pick-Your Own

• Customers come to your farm– Harvest your crops

• Benefits:– Reduce costs– Fresh produce

• Disadvantages:– Safety of customer– Weather conditions– Damage to crops, irrigation systems, &

compaction

Community Supported Agriculture

or Subscription Farming• Customers:

– Buy a share in the farm or a percent of the product

– Put together a list of produce they want to buy• Shareholders

– Decide the type of crops – Pay the growers a sum and production begins

• Harvest Time Options– Delivery Service– Pick-up Service– Customer Harvesting– Customers pay farmers final sum

Community Supported Agriculture or Subscription

Farming• Benefits

– Consumer input on crop selection– Prices cover costs– “Shares” sold in beginning of season, few up-

front costs are borne exclusively by grower– Agro-tourism potential

• Disadvantages:– Works best in Urban areas– Education of shareholders about farming

practices– People skills

Marketing to Chefs

• Communication to chefs about:– Types of products they want – only your

highest quality– When are busy and slow periods within

the day – Give your best service– When they are available for phone calls,

ask for direct phone and fax numbers– How much cooler space – How to

Package– Payment terms– What you have to offer, seasonality!!!

Marketing to Chefs

• What chefs look for:– Product quality– Availability– Reliability

• Pricing your products– Take in to account all costs– Create a balance– Consistency!!– Market research

Farmer or Flea Markets

• Benefits:– Cash payment– Prices are normally higher than

wholesale– Exemption in size & packaging – Good customer feedback– Insurance is normally handled by

market operators– Draws large crowds, lots of products

Farmer or Flea Markets

• Disadvantages:– Limited sales volume, and market hours– Time away from field– Weather Conditions– Space & product limitations– Political & bureaucratic unknowns

Farmer or Flea Markets• Market Day Considerations:

– Is your vehicle large enough• Product, table, chairs, structure, sign, etc.• Know your spot and how to get in and out.

– Once market full of people difficult to move vehicle– Shade, Display, protecting your product

• Produce doesn’t like wind and heat, • Clean and orderly display

– LIST PRICES, • Customers are shy and will not ask a price. • Have materials available to change prices.• Volume or by weight (if weight must have accurate scale).• Have plenty of change, plan on many customers only

having 20 dollar bills, some only $100s.• Record all sales

Farmer or Flea Markets

• Market Day Considerations:– Know what you are selling

• Be prepared for lots of questions, on variety, spray history (care or recipes).

• Printed product information always good.– Walk the market and note what others are

selling, what seems to be moving, their prices, display.

• Take notes on ideas for next market day.– Know the asking price and the cost of your

goods• Some will be willing to pay your price others won’t

(have fun, don’t be offended, but don’t loose money)• Offer volume discounts.• Smile and enjoy the people, have a story.