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Bureau of Markets - Farmstands
Marketing Small Fruit
by  David Handley
University of Maine Extension

 

I.  General Considerations
The importance of good marketing strategies is often overlooked by small fruit growers, as even the very best production techniques will not be profitable unless crops are properly
marketed.  Three basic rules of marketing should be kept in mind from the very start of establishing a commercial small fruit operation: 

1)  Think quality in every phase of your operation. 
2)  All the fruit should be sold before a single berry is picked. 
3)  Price your product fairly. 

One factor stands above all others in establishing and maintaining a profitable enterprise:  quality.  It is the quality of your product and your operation that will bring about return
customers, and they are the people who bring about your highest profits.  High quality fruit from a neat, efficient farm, sold in a friendly atmosphere will reap far more profit than poorly
handled, ungraded fruit from a badly organized grower.  A good reputation is the best publicity you can have.  Selling junk with the attitude of fooling the customer will guarantee a short business life. 

No matter what channel you choose to market your fruit, pick-your-own, fresh market, or processing, customer contact should begin early, well before the harvest season.  Let buyers know what your product is, and how much will be available.  If selling via pick-your-own, begin advertising well in advance of the picking season.  Promote the quality of the crop, and let them know when you will be opening.  Growers who invest the time in advance marketing seldom suffer the frantic race to sell fruit before it rots, or have to drop prices below the profit margin to get fruit harvested. 

What you charge for your produce must be fair to both you and your customers.  The price must be set high enough to bring you a good profit, but not so high as to cheat the customer, or be far above any competition.  Proper pricing requires a thorough knowledge of production costs.  Be aware of how much it costs you to produce your crop.  Make sure to account for labor, includingyour own.  While overcharging is sure to result in disgruntled customers, underpricing can cut deeply into your profits.  Reducing prices to undercut the competition may seem like a good idea on the surface, but in reality is likely to cause more harm to your operation than good.

First, by reducing your price you have reduced your profit.  It is probable than any resulting increase in customers will not make up for the lower price, assuming you've already been doing a good job of promoting your product.  Second, your competitors may lower their price in response, setting up a price war, in which you may be reduced to selling your crop at break even prices or lower!  Finally, the customers may come to expect you to drop prices during the season, and hold off buying until you do so, once again reducing your profits. 


II.  Marketing Options
Small fruit are typically sold via one of three marketing channels: customer harvest ("pick- your-own"), fresh market (retail or wholesale), and processed (jams, jellies, etc.).  Each of these outlets presents certain advantages and disadvantages which should be carefully considered by the grower.  Most growers utilize more than one marketing channel, and this can be an advantage in itself, as the demand in one market can make up for slack periods in
another. 

A.  Pick Your Own
The pick-your-own (PYO) market for small fruit crops has proven successful for many grow
ers, but can be highly dependent upon a farm's location.  In order to attract an adequate number of customers to a PYO farm, it should be located within at least 20 miles of a densely populated area, with little or no competition.  It should also be on or near a major roadway, and easily accessible.  Farm roads to the fields must be adequate for customer vehicles, or transportation should be supplied.  Ample parking space should be available, as well as toilet facilities, drinking water, shade, and some seating. 

Although one of the major advantages of PYO marketing is reduced harvest labor, field supervisors must be employed to direct and help customers in parking, harvesting, and check out procedures.  These people should be courteous and friendly, and have a good knowledge of the farm.  Check outs should be neat and efficient.  Don't make customers wait in long lines to pay;  open more checkouts if necessary.  It is generally best to charge by weight of fruit, rather than by volume.  This will curtail the inevitable arguments as to what constitutes a "full" pint, and guarantees a fair price to all.  Electronic scales can make weighing proceed very quickly.  If you supply a standard picking container to customers, then you can easily subtract its weight before charging for the fruit.  Otherwise, containers must be preweighed before the customer goes into the field. 

Post a set of rules in obvious sight for the customers, and be sure supervisors are familiar with them.  Most operations allow children, as PYO farms are commonly a source of family recreation (families tend to pick the most also), but make sure they are supervised.  It may be advisable to have alternative amusement for children available, such as a playground.  This brings up an important point:  insurance.  You would be strongly advised to consult an insurance agent regarding the potential liabilities involved in a PYO operation, and purchase appropriate coverage. 

Experience has shown that raspberries may not be as popular for PYO as other crops, such as strawberries;  this is probably due to their higher cost per pound, greater difficulty to harvest, and later season.  But in some locations these obstacles may not deter customers, and PYO can be a viable part of an overall marketing strategy. 

B.  Fresh market
Selling fresh fruit to retail or wholesale buyers is a viable option for growers whose operation for some reason is not adapted to customer harvest, e.g. location or grower preference.  Of
course, many growers who utilize PYO also sell to other markets.  This is fine, as long as one of the markets is not simply getting the low quality leftovers of another, or if they are, there is a clear understanding by the buyer, who pays accordingly.  Buyers must be contacted well in advance of the season to set up orders and arrange shipping.  Some outlets may demand specialized handling or packaging.  If this is the case, they should be willing to pay for it. 

Harvest labor is a major aspect of the fresh fruit market.  Depending upon location, there may be a shortage of willing and capable workers.  Some operations have recruited children or senior citizens to harvest fruit.  These can work well if treated properly by the grower.  It is best to start picking as early as possible in the morning, provided the fruit is dry, and quit before noon.  This will assure the fruit is picked at its best quality, and that pickers are not forced to work during the hottest part of the day.  Most growers pay pickers by the pint. 
Bonuses offered for a certain number of pints will provide more incentive.  Train pickers to harvest only fruit of good quality at the proper stage of ripeness.  Maintaining a good working
environment is crucial to keeping good labor.  Make each worker feel as part of the team.  Generate enthusiasm for your farm and your product.  Your workers attitude will show in the quality of your fruit.  Contact your state department of labor for regulations regarding the hiring of temporary farm help. 

Post harvest handling of the fruit is a critical part of dealing with the fresh market.  You must have the ability to deliver a high quality crop with a maximum shelf life.  This can mean a considerable investment in packing, storage and transportation facilities.  Be sure to follow up your shipments to see that they are properly handled in stores.  Improper handling at the store can ruin your efforts to deliver a good product.  Discuss proper procedures with the produce manager because it is your reputation at stake.

C.  Processing
Growing fruit for processing entails many of the same efforts required for selling fresh fruit, such as contacting buyers, filling orders, and delivery.  If you intend to do the processing
yourself, you must adhere to your state's sanitation and labeling regulations.  This may involve regular inspections.  Contact your state department of agriculture for details. 

Value-added products, such as jams and jellies, generally bring about a higher profit than fresh fruit, but the inputs are much greater.  Labor costs will be higher, and appropriate cooking tools will be needed, as well as a steady supply of ingredients, jars, labels, shipping boxes, and so forth.  There are mechanical harvesters available for brambles and blueberries that do an adequate job for fruit intended for processing. 

III.  Advertising
No matter which marketing outlets you use, advertising must be a primary part of your operation.  Advertising is the tool by which potential customers are contacted and attracted to your product.  Without it, they'll never know you exist.  Your advertisements should represent your operation;  they should be tasteful and of high quality.  Remember, this is going to be the
customer's first impression by which they will judge you.  Develop an attractive logo and display it prominently in all your ads and, if possible, on your products.  Make sure it is simple enough to be recognized easily.  Check with your state department of agriculture for lists of farms for consumers, and get your a
ddress on them. 

Who are your customers?  If you don't know, then you may be advertising to the wrong audience.  Survey your customers to ascertain their characteristics and location, and gear your advertising accordingly.  For example, if most of your customers are homemakers or families, advertise where and when these people are likely to see or hear it.  Collect the names and addresses of all your customers, and keep a mailing list.  This is one of your
most effective advertising tools.  A direct mailing sent out at the appropriate time, such as a post card indicating your opening date, the high quality of your fruit, and your desire to see the customer at your farm, gets better results than nearly any other media.  If you're selling processed goods, send out a letter regarding your product with an order form.  Make the customer feel wanted;  make them feel like part of the farm. 

Several types of media are available for advertising, aside from direct mailings.  Newspapers are probably the most popular and effective.  Ad space is usually sold by the column inch.  Large ads may be quite expensive, but depending on how many people see it, it could be a lucrative investment.  Keep the ads short and simple, don't lose the customer's interest.  Photos grab a reader's attention and can increase the effectiveness of your ad.  Place the ad in the section where your clientele is most likely to see it.  You may want to offer coupons as part of the ad.
 

Repetition is the key to radio advertising.  It is better to buy 20 spots on one station than one spot on 20 stations.  Costs of ads vary according to the station and time of day.  Pick
stations that your customers are most likely to listen to.  These may not be the major stations.  You may consider sponsoring morning weather reports. 

Television advertising can be quite expensive.  In addition to air time costs, production expenses can be considerable.  Daytime ads are effective in reaching the family audience, and they are much less expensive than prime time.  Both television and newspapers offer good opportunities for free publicity.  Reporters may welcome a public relations story on a strawberry  harvest or a local jam making operation.  Encourage them with an invitation to your farm or press release promising good scenes for their cameras. 

Signs are best used to direct people to your farm, rather than attracting new customers.  Some states have strict rules regarding roadside signs.  Contact your state department of transportation\ for details.  Signs should be attractive and easy to read.  At 50 mph, a motorist has only 3 to 5 seconds to read a sign.  Thus, no more than 6-8 words should be used.  Use pictures or your logo, if possible.  Road signs are not the place to display your prices. It is more important to catch the customers attention;  let them know what you have and how to get to it. 


When designing your ads, think carefully about what to say.  Simply stating that you have raspberries available at whatever price may not entice your potential customers.  Emphasize the benefits of your product, its quality, freshness, flavor, and nutritional value.  If you have a PYO operation, be sure to advertise the fun and recreation a trip to your farm provides.
Price is a relatively low priority among many of today's consumers. Quality is far more important, and should therefore be the focus of your advertising. 

As a general rule advertising should be budgeted at 5% to 10% of your sales income, but this should be adapted with experience.  Keep records of money spent on advertising vs.  return (e.g.  number of new customers).  Increase your advertising budget if competition in your area is great, or your location is far from the target audience.  Don't overdo it.  Too much advertising brings diminished returns and possibly too many customers.  Overcrowding and inadequate supplies are sure ways to lose patrons. 

Finally, the best form of advertising you can get is the word-of-mouth advertising a satisfied customer passes on to others.

The potential for this advertising is immense;  it will generate lots of customers and many of your best patrons, but it is not free.  Making a customer satisfied and happy enough to recommend you to other people requires that you maintain a high quality product, and make purchasing that product a pleasure.  A good reputation involves a lot of work, but it will carry you a long way.  A bad reputation can ruin your business and last forever.  Advertising is the tool which brings customers to your farm.  Quality is what will bring them back for more.

 

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