Presentation on theme: "So you want to be a farmers’ market vendor?. Benefits of Farmers’ Markets Incubator and testing ground: “test the waters” to see how popular products."— Presentation transcript:
Benefits of Farmers’ Markets Incubator and testing ground: “test the waters” to see how popular products are with customers. Receive feedback from customers about taste, quality, packaging, price, and customer service. Direct contact with customers: vendors have the opportunity to educate consumers about how products are grown, prepared, or crafted for the market. Guaranteed crowd and location: Farmers’ markets attract much larger crowds than individual businesses, making your potential customer base much larger. Group advertising: Farmers’ markets provide group advertising for the market as a whole which benefits all vendors. Learning opportunities: Vendors can learn from people who have been in the business for many years. Price: Farmers’ markets vendors set their own price, eliminate layers of marketing, and receive immediate payment. Eliminating the middleperson means higher returns for the producer. Minimal start-up costs: Costs are typically much lower when compared to setting up your own retail business in the community.
Challenges of Farmers’ Markets Time spent at market takes away from production time. Long hours may be required. Need for great staff who enjoy interacting with customers. Permits and regulations to navigate. It may be difficult to access space in well established markets.
Reality Check Are you an entrepreneur? Two-thirds of all small businesses won’t survive the first three years.
Business Plan Your business plan specifically and concretely lists your goals for the next few years Your business plan should answer the following questions: Product Development How will you prepare and package your product? Where will you make your product? Finances How much does it cost to make your product? How much will you sell your product for? Marketing What is special and different about your product? Who are your customers? Who are your competitors? How will people learn about your product? Sales Where will you sell your product? How will you distribute your product?
Executive Summary: »Summarizes the key elements of the entire business plan. Sector Overview: »An overview of the sector your business will be a part of (trends, major players, estimated sales, and your businesses’ place within the sector). Market Analysis: »An examination of the primary target market for your product or service. Competitive Analysis: »An investigation of your direct and indirect competitors. Marketing Plan: »A detailed explanation of your sales strategy, pricing plan, proposed advertising and promotion activities, and product or service’s benefits. Management Plan: »An outline of your business’s legal structure and management resources. Operating Plan: »A description of your business’s physical location, facilities and equipment, kinds of employees needed, inventory requirements and suppliers. Financial Plan: »A description of your funding requirements, your detailed financial statements, and a financial statement analysis. Appendices: Any additional information that will help establish the credibility of your business idea, such as marketing studies, photographs of your product, and/or contracts or other legal agreements pertinent to your business.
There are a few things to navigate in starting a business – Ensuring cash flow Revenue Canada’s 3 year rule Registering your business Registering your business name Choosing the right business model When to charge HST Filing your income tax Insurance
Costs associated with selling at a farmers’ market Transportation Signage and display Table fees/market membership Electricity Packaging Staff Insurance Your time
Permits A farmers’ market itself must have a Public Market Permit. Vendors, depending on what they are selling, may be required to have a Public Market Vendor Permit. A person who has completed Food Safety/Food Handling Training must be on site at all times during the operation of a food service booth selling Schedule A products at a public market.
Farmers’ Market Guidelines Roles and responsibilities of board members, managers and vendors. Fees, rules, policies and procedures of each individual market. FMNS membership.
Questions to Ask When Considering a Farmers’ Market Questions for the Manager: Merchandise- What is permitted and not permitted? Rent- How much? Are there other fees and expenses? Rules and Regulations- How does the market operate? Set-up- What do you need to bring? Fees and Permits- What are the requirements? Questions for Vendors: Customers- What kind of customers shop here? Sales levels- Is this a profitable market for vendors? Products- What type of merchandise works best here? Operations- Is the market well-run? Atmosphere- Is this a nice place to work?
Pricing How do I set prices for my products? You must know: your cost of production, what this product sells for at other retail outlets. Remember to value your time!
Building a Successful Business Begin with a quality product. Create an attractive market stand. Marketing is key to success! Interact with your customers: website, Facebook, Twitter, blogging, newsletters. The power of word of mouth. Great customer service. Collaboration within your market.
Introducing New Products Give samples. Offer it to loyal customers first and ask for feedback. Build on trust established with other products. “Announce” new products though email, website, etc- build excitement! Use new products as advertising. Don’t expect to make sales, but focus just on promoting at first.
Farmers’ markets offer opportunities to grow your business by developing new market venues (including community-supported agriculture, custom orders, bulk sales, creating value-added products and making connections with the hospitality & tourism industry). There are opportunities to sell more at the market through product diversification and value-added, but there are also opportunities to grow your business by selling over more days, selling at multiple markets, and using the market to promote other products and services.