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By Jane Eckert April 2003
As a farm consultant, I visit properties throughout
North America. Often, the owners ask the same question: "What can
I do to improve my off-season?" And I say, hold on, your best bet
at increasing revenues is to improve your best season. Yes, start
with the best season and build on it to make it stronger.
For most farmers, the best season is fall (September
and October), when sales account for between 50% and 100% of total
farm revenues.
Just do a quick calculation in your head: how much
would you have if you improved sales in July by 10% compared to
how much you would have if you improved sales in October by 10%.
See where I'm going?
Where can you make the biggest improvement to the
fall season? In INCREMENTAL SALES - increasing your sales-per-person
or average sale. After all, you have big crowds at the farm; let's
try getting each person to spend a few extra dollars.
How do we improve incremental sales?
LOOK AT THE LINES
The good news about our fall season is that there
are big crowds on the farm. The bad news about the fall season is
that there are big crowds on the farm creating long lines at food
stands and in the farm market.
While most people don't mind waiting
in food lines or checkout lines for a brief period, it can quickly
become a turn off and people just get tired and leave the line.
In fact, they might even leave the farm.
Open another food outlet or food cart
(even if it's just for the four-hour peak time) to minimize lines
Use a tent if necessary since this is
just temporary
The crowded sight of the country store
may be turning people away. If the lines inside your market are
very long, it just encourages people to go back outside for other
activities than shopping, before they've made any purchases. Add
more checkouts if possible.
To reduce lines inside the market, consider
moving some of the most desirable, seasonal products into outdoor
retail stands or a tent. For example, create an apple stand outside.
This will reduce lines inside the market as well as create incremental
sales from people who weren't willing to brave the crowds at the
store.
Again, inside your market may get
very crowded during the high season. Look at a prep area or a storage
area. Can you use that space to give the crowd some breathing room
and help the traffic flow?
PUMPKIN PRICES
Maximize the value of the pumpkin crop
by charging per pound, not per pumpkin. This means you have to have
a scale, but ultimately it will pay off.
Most of you can easily raise your
price-per-pound on pumpkins. Why? Visitors come to our farms during
the fall for a special experience, not to get cheap prices on pumpkins
grown on the property. I've seen pumpkins go for as high as 45 cents
a pound at a farm outside a large city.
FOOD CONCESSIONS
In general, food concessions during the fall season
can generate $2 in incremental sales per person. Look at your numbers
and see how they compare.
Food concessions are one of the biggest
selling opportunities on the farm. Often farmers think opening concession
stands is too inconvenient. It does take a little planning and executing,
but is well worth the trouble based on incremental sales they bring.
Even visitors who have a fixed idea
of what they are willing to spend money on at the farm do not usually
think of food costs within that context. After all, they're going
to get hungry and have to eat somewhere… so it might as well be
with you.
FALL DECORATIONS
This is a category for growth in most
farms. You're already selling pumpkins, but today consumers are
decorating their yards and their homes beyond just pumpkins.
Consider beautiful displays and sales
of bundled Indian corn, colorful gourds, bundled corn stalks, painted
pumpkins, straw bales and fall mums. These kinds of products are
a natural for fall sales and can positively affect incremental sales.
ACCEPTING CREDIT CARDS
Incremental sales often depend on accepting credit
and debit cards at as many registers as possible. Today's customers
travel with very little cash and often leave their checkbooks at
home. You sure don't want them leaving your farm empty-handed because
you don't accept credit cards.
These are just a few possibilities for achieving incremental
sales. Look around your operation and get ideas of how to maximize
the possibilities. Remember, just a slight increase in sales per
person means you truly can get the best from your best season.
Jane Eckert is
President of Eckert AgriMarketing, a farm marketing consulting firm.
For more information on Eckert AgriMarketing call (314) 862-6288
or subscribe
to the direct marketing e-newsletter via www.eckertagrimarketing.com.
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