By Kim Willis These articles are copyrighted and may not be
copied or used without the permission of the author.
When I worked at the Extension office several people would show
up every month who just had a brilliant idea. They were going to make some
money off their plant hobby. Maybe they were going to quit their jobs and start
a whole new career- farming. Or maybe they just wanted to make some quick money
on the side selling houseplants online.
Now there is nothing wrong with wanting to make some money
on a gardening/farming-based business and working for yourself. But many of the
people who walked through that door had just that - an idea. They had not done
the slightest amount of homework on what they wanted to do nor did they have
any experience, even with a business startup.
I had a gentleman come into the office and tell me he had
just finished planting 5,000 raspberry plants. He wanted some information on
how to care for them and a list of places where he could sell them. On
questioning him I found he had planted the raspberries too closely and on land
that had been in field crops the year before. No soil test had been done, but
he had applied lime on the ground before planting because a neighbor told him
to do it. He had never grown raspberries, but he liked to eat them. He had just
moved to the area and wanted to make enough money from the raspberries to
retire next year.
I referred the raspberry guy to Extensions fruit educator
for the area. Later he told me he visited the new raspberry business, which was
already overgrown with weeds. He said the gentleman seemed astonished that he
would have to weed, train and prune the plants and probably wouldn’t make any
profit for a couple years.
When you approach people and want them to help you with your
new idea, it helps to have done some groundwork. When a client emails and says
“I want to start a retail greenhouse. Can you tell me if I can do that where I
live and how to do it?”, it’s a sure thing they haven’t the slightest clue
about what they are doing. The chances of them putting together a successful
business are almost nil.
So, if you are dreaming about a plant business what do you
do? You could of course pay someone to do all your research. Most people do not
have the means to do that. You also shouldn’t expect to get every scrap of
information about how to raise a product and take it to market handed to you
free from Extension or worse, from another person who has a successful business
in the field. Instead, ask yourself the questions below first. Then expect to
do some work to answer these questions.
What do I know about
the product I want to sell? Do I have
experience growing or producing it?
First read all you can about how to grow/produce the product
you have an interest in. It helps if you also have experience in raising,
growing or producing the product even if on a smaller scale. For example, if
you have been raising vegetables for several years and selling excess
vegetables to neighbors and friends you have some idea what is necessary to
raise vegetables for sale. The internet, the library, books and magazines about
the topic, and people who are in the business are good places to start. Your
county Extension office can also help on most topics. Become a mini expert on
your topic.
If you find out that you cannot produce a product- say
pineapples - in your area, it’s time to move on to another idea or move to
another state.
Can I legally produce
the product on my property?
Doing something as a hobby is different than doing it as a
business. You need to know how your property is zoned and what activities your
municipality allows in that zone. You need to know what the legal production of
your product entails, what kind of inspections, licenses and facilities it
requires. You can get your zoning regulations and find out what planning zone
you are in from your township, city or village offices. You may be surprised
that even a roadside stand for fruit and vegetables won’t be allowed or that
you can’t put up a greenhouse or use your garage to package and ship
houseplants.
Two types of laws could help you; any Right to Farm laws and
any Home Cottage Industry act/laws for your state and if you have those in your
state you should read and understand them. You will also need to see if the
product(s) you are considering needs inspection or licenses/permits from the
USDA or your states department of agriculture.
You need to know what it costs, how to apply and what it takes to pass
that inspection or get a license. Every state has a list of what plants cannot
be sold/ and or produced in the state. The USDA also has rules about what
plants can be shipped and how they are shipped. Take time to familiarize
yourself on all rules and regulations.
If you are producing a processed edible (jellies, pies, herbal
teas and so on) or medicinal product (healing salves, lip balms and so on) your
county health department may also require inspection of your production
facilities and/or the purchase of a license.
Once you know what rules and regulations affect you then you
may be able to petition for a zoning change or exemption or ask for an
exemption from the USDA or state ag department. You could also locate your new
business where it is allowed by buying, renting or leasing a store, land or a
greenhouse. But don’t start a business knowing you are doing something illegal,
you’ll find nothing but trouble and expense.
While I said that your county Extension agent won’t be able
to give you all the information you need to grow and produce a product they may
be able to direct you to classes for entrepreneurs wanting to produce
agricultural products. Your state may have a dedicated Extension program or
State Department of Agriculture program that helps guide people in beginning
agricultural businesses – or any business.
Utilize these programs if you can.
Can you make a living
or break even with your business idea?
Once you know how to produce the product and if you can
produce it on your property you need to decide if you can obtain the kind of
income you want or need from the product.
There are no sure things in any business start-up, especially an agriculturally
based business, but you should begin with at least some expectation of profit,
unless this is purely a labor of love.
What does the product sell for in your area? Are there
competitors and how many? Is there a demand for the product you want to
produce? You may be able to produce 20,000 cucumbers and make a profit if you
sell them at 10 cents each but if no one wants to buy them in your area will you
make a profit if it costs you 5 cents to ship each cucumber somewhere else?
If you go to the local farmers market and 6 people are there
selling organic heirloom tomatoes can you succeed in an organic heirloom tomato
business in this area? If the demand is great or you have some better idea
about marketing it’s possible, but you would want to carefully research this
before jumping in.
Knowing the potential market for your product is crucial for
starting a successful business. It doesn’t matter how much of anything you
produce if you can’t sell it. You may get some idea of market potential by
researching sales of the product in other areas and comparing the population
and competitors in your area. Check out local sales of your product, look
actively for places you could sell the product. If you are considering an online
market how many sellers already offer the product? If you can’t come up with a
reasonable estimate of marketing potential you could start small and build your
market with time and experience but be wary of investing everything you have in
the startup.
How much will you have to invest in your business just to
get started? Add up fee’s, licenses,
equipment, buildings, utilities, supplies, labor, shipping and marketing costs.
Your expenses could be small- a bag of potting soil, some plastic pots and
shipping boxes. Or they could involve building and heating a greenhouse,
potting soil and pots and a truck to deliver plants.
If you need to make a living from this project how much
“pay” do you need? Play around with the
figures and get a rough idea of what you will need to produce the kind of
income you expect. If a plant commonly sells for $3.00 and it takes $1 to
produce each plant, you have a net profit of $2. Now do the math. If you want
to produce income of $100 a week you will need to produce and sell 50 plants. And
don’t forget- you need a market for 50 plants before you can sell them.
There are many things to consider about marketing. If you
can produce 50 bushels of wheat off the small piece of property you own in a
good year and wheat is selling for $3 a bushel, wheat probably isn’t the crop
for you. But what if you took that wheat- make it organic wheat - and ground it
into a specialty flour and let’s say each bushel gave you 50 little bags of
flour you sold for $5 each - well now you might have some decent income,
realizing that your expenses will be greater, and you will have to do some
clever marketing.
You will need to decide if you want to be a wholesaler or
retailer of your product. Wholesalers get less for the product, but they also
have fewer expenses and don’t have to deal with the public, which takes up time
you can’t allot to production. Internet sales have made it easier for a
producer to deal directly with customers but there is the expense and hassle of
shipping and one still deals with customers worries, complaints and questions
and there is time involved.
Be wary of scams
I had the sad experience of sitting down with an 80 year old
gentleman who had just invested a considerable amount of money in buying
ginseng plants, which someone had told him he could plant on his wooded land
and make a lot of money from. Like the raspberry man he was here to get
information on growing the plant and a list of places to sell it. In his case
the plants hadn’t even been delivered yet. Since growing ginseng wasn’t
something I knew a lot about I went on line, downloaded and printed some
information for him from a reliable source.
We looked over it together and I explained to him some of the work
involved and more importantly the years it would take to get a crop to sell. His
spirits weren’t diminished, and he still was sure he’d be rich soon and I was a
bit worried.
I asked the gentleman to bring his son in to see me, since
he told me his son had agreed to help him plant the ginseng. The next week they
did come in together and when I explained to the son about the ginseng, he knew
immediately that his father had fallen for a scam. He convinced his dad that
they would ask for a refund of the $5,000.00 the man had invested. I don’t know
if they ever got it.
I have heard dozens of “get rich quick by growing X” scams
over the years. Before you invest any
money and time into a business of any kind do your homework. Be skeptical of
any claims of fabulous money to be had in a short time with little work. Unfortunately,
some popular magazines and websites feed into this idea with glowing reports
about making a living off a half acre of land for example. It may be possible,
but something that’s possible isn’t always probable. It also depends on what
you call a “living”. Do your due
diligence in research for your area before investing time and money into any business
project.
People at Extension and at farm or horticultural service
operations can help you and direct you to valuable resources once you know what
you want to do and have some basic knowledge of your desired business. If you
have an idea for marketing a product, there are people that can help you decide
if it will work, although this consultation is not always free. But the
ultimate decision to start a plant-based business, or business of any kind,
should be made after you have thoroughly researched the idea.
Consider a niche
market
If you are wanting to start a plant-based business you have
many choices. You can start a
conventional greenhouse, selling tomatoes and petunias or you can specialize in
succulents or orchids. You can plant evergreens for Christmas trees or rare and
unusual conifers for collectors. You can grow wheat or amaranth, strawberries
or goji berries. There’s nothing wrong with starting a retail greenhouse if
there are no greenhouses for 20 miles and a population near your greenhouse
that might be interested in buying your product. But if the population in the
area is small and there’s already a well-established greenhouse nearby you may
struggle to make your greenhouse profitable.
You may want to grow vegetables for the farm market. If you
live near a thriving farm market which is close to a densely populated area you
may be able to make decent sales at that market with your conventional garden
produce, even with many other vendors selling similar produce. But you might
consider a slightly different approach from other vendors by growing Asian
vegetables, unusual fruits, specialty peppers and so on, and make even better
sales. You might want to turn your blueberries into jam or pie. When competition is stiff and even when it’s
not, a niche business is often more profitable than more common ones.
What is a niche
business?
A niche is a small, defined market. Demand for a product may
be limited because of cost to the consumer, because the product is scarce,
because it is unknown, or because it appeals to only certain people. A niche or
specialty market is a small business that is producing an item that is uncommon
because of its variety, method of production, quality, or uniqueness in the marketplace.
Many niche markets that are plant based involve food products although there
are many non- food items that can be profitable when produced by a niche
business. Niche businesses are generally run by a family or small partnership.
Niche businesses sometimes evolve into larger enterprises
and products produced by them may be taken over by larger markets as demand for
the product increases. For example twenty years ago anything organically
produced was largely a niche market product. As more and more Americans become
willing to pay for organically produced food, some organic foods are being
produced on what only can be called large scale farms.
Niche businesses can produce a product that was never
available before, at least in a specific area, or they can take an old product
and produce it in a better way. Everyone will not pay $5.00 for a loaf of
organic, specially made bread, there will still be a market for $2.00 a loaf,
white, sliced bread found in the supermarket. But there are many places where a
person producing a quality, delicious bread from organic flour will be able to
make a good profit.
In niche businesses the profit lies with making each item
produced achieve the maximum profit per unit through added value. In
traditional farming and greenhouse/nursery operations the focus is on producing
volume, with each individual item producing only a small amount of profit. More
corn per acre, instead of unusual or high-quality corn per acre for example. Hundreds
of 10 inch hanging baskets in white pots instead of unique plant combinations
in handmade pottery containers.
Niche businesses make their own market to a large extent. If
there are hundreds of people producing geraniums and the market is full of
geraniums to purchase for example, a large buyer will be able to set the price
he wants to pay for geraniums and producers will have to sell geraniums for
that price if they want to sell at all. The niche business can set the price
they want to get for their goods (within reason) because they have something
that few other people are offering. The niche business goal should be to
produce a product that has value independent of traditional markets.
Uniqueness
Having a unique product is key to a successful niche
business. That doesn’t mean that the product has never been produced before. Apples
can be a unique product of they are a rare heirloom variety sold in a special
gift basket. Niche products may be unique to your area, they may be unique
because of how you sell or process them, or they may even be something no one
has seen on the market before. Uniqueness will only take a product so far,
however. If the food product doesn’t taste good and isn’t a quality product, it
will quickly lose its appeal to the customer. If the perennials you offer
aren’t really perennials in your market area people will stop buying from you.
If a product is successful it will soon become less unique
as others try to emulate your success with it. A niche business only fills a
niche as long as there is a niche. That means when demand for a product becomes
widespread enough that many people are producing it in large quantities, the
niche business owner is either very rich or has went on to another
product.
There is one thing I must mention here about uniqueness. If
something you are trying to sell is completely new to the customers you will be
trying to attract, you must be prepared to do some clever marketing. You may
have to offer samples of an unusual fruit or take some of your beautiful
unusual succulents to display at garden clubs and shows. When deciding on niche
products one must also consider the typical buyer in your market. If you are at
a farm market where college students are frequent shoppers, for example,
selling organic tomatoes individually will probably work better than selling
bushels of tomatoes for canning.
Empathize on quality not quantity
A niche market succeeds because the customer believes that
the product has limited availability. If he or she could get it anywhere why
should they buy it from you? If the
product is a common product, such as petunias which can be bought outside the
supermarket, why seek out the niche seller?
Niche markets thrive because the product they produce is of
a higher quality than what conventional agriculture produces. The niche petunia
seller will offer big, beautiful plants and rare varieties and colors. When
someone sees those petunias in a pot somewhere and asks the owner where they
got them, the quality must be so obvious the customer is willing to seek out
the seller. A niche business owner must constantly empathize that the product
is of high quality and it simply must be of high quality to succeed.
Artisan concept
This leads us to the artisanal concept. Your product is
produced in a particular environment in a way only you produce it. The water,
the potting medium you use, the oven you bake in, the attention you pay to
detail, all those things are part of your unique product. It is like a dozen painters all looking at
the same scene and painting a picture of it. Each painting will be different. Some
artists will paint a picture that will command a higher price. They may be more skillful, they may take more
care, they may just be lucky in that they produced a picture that people find
more appealing.
That is the artisan concept for plant-based businesses
also. A small farm or greenhouse/nursery
owner produces a product that does not always taste or look exactly the
same-unlike a big food processor or a plant wholesale operation that sells to
big box stores who strives for just that thing. The niche business owner has a
close association and interest in the product, which tends to lead to higher
quality and a better product.
Many niche markets grow out of a hobby or begin because
someone is intensely interested in the product they sell. If brugmansia is your
favorite plant and you have dozens of varieties of the plant and you love to
propagate them, a niche business in brugmansia cultivars would probably suit
you.
Most people enjoy buying a product from a creator of the
product. They want to talk to the artist
that created it. That is part of the value of niche products, the closeness of
the producer and the consumer. The most successful niche products capitalize on
this concept.
Distance marketing
While the relationship between the producer and the seller
is important in the niche market that doesn’t mean one cannot develop catalog
or on-line sales of a niche product. This can allow you to reach many more
potential customers for your specialty product. There may be only 6 people
interested in carnivorous plants in your immediate area but thousands across
the country. If you don’t have what is known as “people skills” distance
marketing may be easier for you. Distance customers may make the difference
between a successful niche market and an unsustainable one.
You will need to consider how practical distance selling is
for your product, what costs will need to be added to keep a good profit
margin, and what additional rules and regulations there will be for selling
your product across state lines or country borders. And you will also need to
consider how comfortable you are with the technology needed to develop the
distance market. You may need to work a little harder to make that special
connection with your customers that defines a niche market.
If you are considering a plant-based business put on your
thinking cap and ponder how you can develop a niche business. The correct
product, quality of that product, how it’s marketed and the skills and hard
work of the people running the business are what will determine whether a niche
business is successful or not.
Adding value to your plant-based
product – processing, packaging and presentation
This is the last of
a series of articles on how to have a
successful plant-based business, whether that is carrots grown organically or
houseplants you started from cuttings. In this article I’ll talk about processing
a raw product, packaging and presentation of your product. These things can
make the difference in making a good profit or barely breaking even.
Just as the major box stores are always remodeling in hopes
that you will perceive something new and different to bring you into their
store, don’t be afraid to change and improve your product. A new look may bring new customers. Think
about the customer you are trying to attract. If you want to expand into a new
market, think of packaging or adding value in a way that will attract that
sector.
If you are not a creative person and have trouble thinking
outside the box, ask an artistic or eclectic thinking person to give you some
ideas. You can get help with adding value to products by researching what is on
the market, asking people what they want and asking experts to help you. Many
state Extension offices have agriculture agents or agents that specialize in
small business start-ups. Specialty associations may also offer help.
Processing – turning a raw product into a better sale
Other than going from wholesale to retail the best way to
realize additional profit from a product is to process it in some way. Processing
may be as simple as washing and labeling a product or as detailed as turning it
into a vintage wine. It’s best to start with the simplest way of processing a
product and evaluate from there.
Even the simplest methods of processing food can increase
its value by double or more. But people get into trouble with processing when
they don’t understand how to figure out the increased costs associated with it
and increase their product price accordingly.
Your processed food must be of higher quality and taste
better than mass produced products of the same type to keep sales. It must also be healthy and visually
appealing. If you produce apple pies that are runny, with thick lumpy crusts
and a little too much cinnamon, a few people may buy again, (those that
remember mom’s pies that way), but most will not. In addition, they may associate your name or
logo with an inferior product or actually make negative recommendations to
others. In the age of internet reviews,
you do not want that.
You must have your recipe and production methods down
precisely before you begin marketing and you must be willing to discard product
that is not up to quality standards. Food safety, such as keeping things at the
proper temperature should never be compromised.
The time it takes to process a product is also a factor. It
takes a few minutes to sort and wash greens and package them in a simple
manner. Children could help do it. Making beer is much more labor intensive. Children
might learn to help, but it is more complex and exacting work than washing
greens. In fact, food regulations may ban small children from some processing
areas. Your labor and time equal money.
Products that take more of them should be priced accordingly.
Start with thinking of all the ways your product could be
processed. If an idea appeals to you then research the cost and time involved
in the process. What kinds of licensing
would you need? What kind of buildings,
space, transportation would you need? What kind of equipment and handling
supplies would you need? Could you and
the family do it or would you have to hire help? Do you have the experience and skills to
process the product?
Outside of the states that have cottage industry
regulations, processing food in any way generally requires that you have
special facilities and obtain inspections and permits. For example, if you want
to produce strawberry jam you will probably have to do it in an inspected and
approved kitchen, not your home kitchen. You could re-model your kitchen or
build a kitchen to specifications but that will be very expensive.
Some states will allow a certain amount of food processing
to take place in the home without special licensing and expensive certified
kitchens. The food is sold by the producer and has a label that says it was
produced under the cottage or home industry law. It can’t be sold outside the
state, generally that includes internet and catalog sales also.
There are ways you can work around this issue. In many
places you can rent an approved kitchen for a day or two a week to make your
product. Try contacting churches, association halls, village halls, schools and
other places that serve food to the public and see if you can rent the approved
facilities. If you have problems finding
a place you may want to inquire at the state department of agriculture or your
health department. In most cases you will need to contact them anyways, to get
an inspection code to put on your label.
In some areas there are “incubator” or mobile food
processing kitchens that small entrepreneurs can rent. These may be offered by
colleges, small business associations, trade associations or other places. You
will be allowed to rent them for specific periods of time or even in some
cases, use them for free. A good place to ask about these facilities may be
your state health department or state department of Agriculture as they must
approve these facilities.
Processing food may also require expensive and complicated
or dangerous machinery. Your decisions on processing food items should consider
whether you have the funds to buy the machinery and skills to use it. In some cases,
hiring part of the processing out makes sense and still gives you added
profits. For example, you may want to take your organically grown buckwheat to
a mill to have it ground into flour. You will then package it into small
packages of pancake mix.
After you have processed food you will need a place to store
it until it is sold. Shelves may be fine
for your strawberry jam, but refrigeration might be required for some things. Transportation
to the point of sale may also need to be refrigerated. Clever people can
generally find a way to work around these things, but it should all be planned
out in advance. I knew a woman who had several hundred turkeys slaughtered for
a pre-sold market, but she had neglected to plan for storing the birds safely
until they were picked up. It cost her most
of her profit to rent cold storage for them.
When you are considering processing food you must also
consider the availability and cost of additional ingredients or preservatives
needed as well as your packaging costs. If you are producing organic jelly and
your ingredients are fruit, sugar, salt and pectin you will probably have
little problem finding the ingredients needed to go with your fruit. But if you
want to produce organic apple pies can you get organic flour, butter, and the
seasonings needed?
Once again there are ways to get around these problems. You can have a label that says made with
organic apples instead of organic apple pie. But you need to research all this
and be clear about what you are doing before you start baking pies.
Proper packaging
Packaging a product is one of the easier ways to add
additional value in most cases. The package gives you a place to promote your
name and the good things about the product as well. You must use packaging that
is approved for that type of food or for transporting live plants if that is
your goal. Proper packaging may just be packing apples into sturdy paper bags
with handles instead of dumping them into re-cycled plastic bags or it can mean
putting your lovely succulents into protective plastic forms so they don’t get
crushed.
If you ever bought plants through the mail you know that you
want them to arrive fresh and undamaged. Plant sellers who go the extra mile to
protect plants often get repeat sales. When you are selling plants across state
lines they may need to be opened for inspection at some point along the
way. Make sure the packaging can
withstand this. Thoroughly research the rules and regulations on shipping
plants before you begin the process.
“Convenience” packaging can make the product easier to sell.
If you are selling homemade fudge at a farmer’s market include a small plastic
knife for the buyer to cut the fudge into bite size pieces. If you are selling
juicy peaches in packages of two, why not include some rosy colored napkins
under each peach? This encourages customers to consume the food on site and the
sight of someone eating a juicy peach may prompt others to ask them where they
got it.
There are many places that sell food packaging from bushel
baskets to plastic deli containers. Carefully consider the type of packaging
and the cost it will add to a product. Since many niche farmers will be selling
to customers who already have some preference for buying environmentally
friendly products, consider how your packaging will affect that perception.
Don’t plan on using re-cycled containers from other
businesses if you want to look professional and increase your products value. In
some cases, re-cycled packages for food may be prohibited by law. There may
also be regulations about what type of packaging a product needs for food
safety reasons. Consider the safety factor even if it’s not required. If you
are selling jellies and jams, for example, you want to have a container that
makes it obvious if someone has opened it to smell or sample the contents,
since opened products may spoil.
Since today’s family sizes are smaller, and market surveys
say that people who are most likely to buy niche food products may be single or
two-person households, don’t make your package size too large. This is where
you need to know your market though. In some areas with a high immigrant
population, families tend to be larger and the people more accustomed to buying
fresh produce and using it up efficiently. In these markets larger packages
will sell well. There are some areas where people still want to do canning and
freezing at home and they want larger quantities also.
The costs for packaging decrease with the volume you buy,
but don’t overbuy one type of packaging at first. You may need to change the
package size, type or label after a short period of sales. You may also want to
try several forms of packaging first to see what appeals to your market. Once
you have established what your market likes you can buy packaging in larger
quantities to get a lower price.
Gift packaging
Taking some lovely pears and apples that are blemish free,
cleaned and polished, and then nestling them in a pretty wooden box with tissue
paper nests will increase the value of that product considerably. There will be
of course, additional costs, but the perception you create of a quality product
will help overcome the resistance to a higher price. Gift packaging works well
around holidays and for catalog and internet sales.
Gift packaging may take some ordinary products and turn them
into hot sellers. Instead of selling jam in plain glass jars with a label, put
them in a fancy wine glass that can be reused, with a ribbon around the top.
Attach the label on a gift card to the ribbon. Put your artisan cheese on a
handcrafted wood cutting board. Several types of specialty rice could be packed
in a decorative metal container.
Gift packaging must also meet any food safety standards so
before you pack the jelly into that wine goblet make sure that the goblet isn’t
painted with lead. You may want to discuss any unusual methods of packaging
food with your regulatory agency before going ahead with the packaging.
Test any unusual packaging and let it sit for the expected
storage time of your product. Some things like foil or metal may darken or
change the color of food. Some printed papers may bleed colors onto food.
If you are going to throw extras like a recipe card, coupon
or the story of your farm into the package make sure that those also comply
with food safety regulations.
Gift packaging can also take several ingredients that you
produce and package them so that the buyer completes the product. This can be
bean soup, with your dried beans and seasonings in a package with directions on
how to prepare the soup, or bread mix, or many other combinations. This allows
you to skip costly equipment and time needed to produce the final product. You
may realize more profit this way than by preparing and selling the same
product.
Once again you must discuss this type of packaging, the
labeling it will need and other considerations with your regulatory agency. Gift
packaging goes well with complementary products, which I will discuss later.
Labels
Today’s computers and printers make it easy to design and
print labels for your products at home. This works well for small to medium
sized quantities of labels. However, when you start making labels in the
thousands having them made by a commercial printing company may cost you less
per label. For shipping products you’ll
need a computer program that will print shipping labels. For selling live
plants you will want some sort of plant name labels or tags.
Your product label can be a chance to promote your business
and increase sales. It should be eye catching, but use simple, easy to
understand language. Colors or small images can be used on some labels to catch
the eye. If you intend to sell in an area with a large Hispanic population
having a label in Spanish and English may give you an edge. Make sure you know
how or can get someone who does know how, to translate correctly.
Your label should have a way to contact you, if you do
direct sales, even if it’s not required to sell that product. People don’t
always remember where they got a product and that label with contact
information can mean a repeat sale.
Besides food safety regulations federal and state laws also
tell you what must be put on any food product as a label. If you are going to
sell a food product in more than one state your label must satisfy the
requirements for all the states involved. All food, even fresh produce, must
have a label telling what country it was grown in and if it was processed in
another country that must also be listed.
Some complex foods like baked goods may be exempted.
Other things that may be required on processed food labels
are the name, address and other contact information of the producer, the
processing date and the expiration date, and a complete list of ingredients, (with
some minor exceptions). Nutrition information is required if you do more than
$50,000 worth of business in a year. Allergy warnings may be required. Other
things may also be required depending on the product and local regulations.
To get nutrition information you will have to pay a
laboratory to analyze your product and give you the information. Sometimes
colleges will perform this service in their labs for a smaller fee than public
labs.
For more information on labeling laws and getting
nutritional content analyzed contact the Food and Drug Administration
1-888-463-6332 or http://www.fda.gov
Complementary products
Complementary can mean something that is given free, or
perceived by the buyer as free, this is a marketing tactic. Or it can mean two
products that complement each other and increase sales or that you package
together to be able to increase your profit.
Let’s go back to the cucumbers. If a customer comes to your
stand to buy cucumbers to make pickles, you could give them a stalk of your
organic dill to use in the pickles. Or you could have bundles of your organic
dill nearby that they can purchase. Or you could package cucumbers in half
bushel containers with a few stalks of dill on top.
Complementary products have all sorts of possibilities. You
are doing what big stores do and are prompting impulse sales. And you may be
picking up profit on a product you would have a hard time selling alone, such
as the dill mentioned above. The complementary product can be something you
produce or something you buy from another producer. For niche market sales it
makes more sense to use products that are produced by other niche farmers.
If you are selling tiny plants buy some cute tiny clay pots
to put them in and paint them in bold colors. Add small packets of starter
fertilizer to each sale of a potted perennial. If you grow herbs dry them and
make seasoning packets for turkey, then add some pasture raised turkeys for
customers to buy. Baskets and unusual vases are good to display near dried
flowers and gourds for added sales.
If you make artisan cheeses and grow organic apples, display
the two together. You could then add a wonderful wine produced by a local
winery and some homemade bread. When you are considering combining value added
food products, always think of foods or other items you could produce yourself
that would increase sales and profits.
Presentation
You can have the most beautiful packaging, or healthiest
plants but if you just drive up to the market in a dirty pick-up truck and let
down the tailgate to sell your products you won’t have as many sales as someone
who has taken a little time and money to present their wares in a better way.
Always keep your selling area neat and clean. The seller
should be neat and clean too, wear an apron if you will get dirty unloading
produce or products and remove it before selling begins. Folding tables,
tablecloths and canopies can help farm market sales. Add decorative touches,
pretty colors, nice smells, neat legible signing to your sales booth. Engage in
conversations but don’t get so caught up in one conversation that you ignore
other customers. Your booth or farm stand should look inviting and clean.
If you are selling from a greenhouse or nursery the rows
should be clear and easy to navigate and no dead or diseased plants should be
in sight. There should be no aggressive dogs, mud puddles to jump over or
rusting equipment lying around. Your own landscaping and gardens in view should
be neat and well cared for.
If your selling area is an on-line page or website, make
sure it’s professional looking and easy to navigate. Make sure everything is
spelled correctly. Use scientific names for plants as well as common ones. Hire
someone to put together a webpage for you if you don’t have skills in that
area.
Decide in advance what you will guarantee and keep your
word. Price things clearly. Don’t add extra fees unless they have been
explained on your site, things like shipping costs should be laid out clearly.
Reputation is everything today with social media quickly
getting praise or criticism out to the public. Keep your reputation spotless,
address and try to resolve every complaint, don’t make promises you can’t keep,
don’t price switch, don’t misrepresent products. A good reputation is the best advertising you
can have.
Starting your own business, which involves plants or food
products you produced yourself, involves lots of research and planning, some
trial and error learning, patience and perseverance. But many people have found these small
businesses to be satisfying and profitable.
If you are dreaming it start planning it, and then just do it. And good luck
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