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DIRECT FARM MARKETING OPTIONS

Source: cals.arizona.edu
Topic: Direct Marketing

Sort Desciption: proaches to direct farm marketing and all. have pros and cons. ... marketing are discussed in more detail in. the Direct Marketing Alternatives section. ...

Content Inside: Direct Marketing Alternatives 1995 3 DIRECT FARM MARKETING OPTIONS by Russell Tronstad 1 D irect farm marketing has the ob- vious advantage in that you can increase the value of your prod- uct by eliminating (e.g. broker fees pack- aging) or taking over common middle- men services. There are several ap- proaches to direct farm marketing and all have pros and cons. One exclusive ap- proach such as a fresh tomato delivery service to restaurants or a combination of direct and wholesale marketing (e.g. U- pick and sell to brokers in peak harvest) may best fit your firms goals. Market advantages and disadvantages to some of the more common direct farm market- ing methods are discussed below. Is- sues related to U-pick roadside market- ing farmers markets and restaurant marketing are discussed in more detail in the Direct Marketing Alternatives section. Delivery Service Running a delivery service brings top dollar for your produce and probably adds more value-added than any other direct marketing alternative. But the per pound marketing costs can add up in a hurry with low volume deliveries time on the road and vehicle expenses. Interviews with potential buyers should be conducted and researched carefully before making the delivery service decision. In looking for delivery markets try to pick out retail- ers that are out of the ordinary and sell in the upper price range. Price is not a major concern to the exotic restuarants in town that are charging $20 a plate for dinner. Supermarkets that are upscale advertise for freshness and carry un- usual produce are good candidates as well. Price elasticity of demand is very elastic for these retailers. That is if prices increase the decrease in quantity de- manded will be very small. These restailers are mainly interested in the uniqueness of your product good quality and a reliable hastle free year round supply. Recognize that a good portion of your produce wont be fit for the delivery ser- vice market. If ...

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