Customers

While some of the COVID-19 restrictions covering outside gatherings are being lifted, most states are still recommending folks wear a mask and social distance at events like farmers' markets and pick-your-own farms. Last year, most people complied with wearing masks, but as restrictions are changing and more folks are now vaccinated, more customers are choosing to not wear their masks at these types of gatherings.

“You never change things by fighting an existing reality. To change something, build a new model that makes the old model obsolete.” – Buckminster Fuller I ran across this quote in my morning reading just before going into a meeting with some of the University of Maryland’s Extension Faculty, UME Ag Program Leader, Dr. Darren Jarboe, and representatives from USDA. The purpose of the meeting was to examine declining sales and attendance at farmers markets and to determine what joint projects and resources could be developed to support stronger markets and attract more customers.

Profitability through direct marketing has, in large part, been derived by targeting a customer segment that has a higher level of disposable income. This segment often lists freshness, supporting local farmers, and product quality ahead of prices when deciding to purchase local food products. While the U.S. economy appears to be strong, the Hartman Group in their recent report “The Business of Thrift 2018: Understanding Low-Income and Value-Oriented Consumers” finds that over half of American households (56%) qualify as low-income today (based on federal poverty guidelines and size of household).

Grocery stores and brokers have been purchasing “in-season” produce for years. As the season progresses, a glut of product drives down prices, allowing stores to capitalize on lower inventory costs. One solution to these falling prices was for farmers to try to get local produce into more stores. But, the problem with local into retail is mainly about distribution. Distributors usually work with brokers, not directly with producers.

With the direct marketing season in full swing, it’s a good time to step back and examine some of the tools and marketing technics that can have a substantial impact on your success as a direct marketer. Whether the outlet is a farmers’ market, your on-farm stand, or working with your CSA or wholesale accounts.

A lot has happened on the farm marketing scene since March 2020. Farmers, processors, and other small businesses have quickly adapted to stay in business in a constantly changing environment of pivoting markets, processing bottlenecks, and government support programs.

By its very nature, agritourism activities bring groups of people together. Since Covid-19 protocols call for social distancing and avoidance of “crowd” situations, how are farms that feature agritourism as their core business model fairing? This is the start of the pick or cut-your-own season and on-farm markets premiering early season produce. What strategies, adjustments, and even innovative ways are these farms keeping their doors open to the public?

Quality products and top-notch customer service are the cornerstones of a profitable marketing plan. A wider array of point-of-sales payment options is now becoming an important component of good customer service with many customers. These options include credit cards, debit cards, and NFC (near field communication: ApplePay, Google Wallet, etc.). Near field communication is the technology that allows smart phones and devises to establish communications with each other when they’re close together.

It was a joke in the county economic development office where I worked that I was the only person in the office that spoke “farmese.” You know…that strange language that uses terms like sustainable, organic, row feet, CSA, cagefree, free-range, over-order pricing, certified organic, etc. Any phone call from a farmer came straight to me because I was the only one in the office who understood what they were talking about.

In 1906, an Italian economist named Vilfredo Pareto created a mathematical formula to describe the unequal division of wealth in his country. The Pareto principle (also known as the 80/20 rule or the law of the vital few) states that in many cases, roughly 80% of the effects of an action comes from 20% of the causes. Pareto showed that approximately 80% of the land and wealth in Italy was owned by 20% of the population.