Direct Marketing Prepared 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 Types 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 Benefits: Disadvantages: 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: Pricing your products 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.