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Important notes about Pricing your product...

Pricing your products can be a difficult exercise. In the long run, the price paid to the producer has to be high enough to sustain the production and distribution costs; yet it has to be low enough to allow a profitable retail (or wholesale) sales margin. Factors involved in your pricing decision include your production and marketing costs; plus your processing, packaging, and delivery costs. Just how much more should you charge for a “locally grown”, “sustainably produced” or “farm-fresh” product?  How much less than farmers’ market prices should you expect a restaurant to pay? These are all helpful questions to ask yourself. Below we have a variety of resources to help you answer these questions.  

Helpful Pricing Tools

Center for Crop Diversification Budgets: (large and small scale) linked here. Budgets are useful for planning your operation and identifying where costs occur. 

Center for Crop Diversification Price Reports: (for the farmer's market, produce auction, etc.) linked here. Check out the Three-Year Average Price & Quantities at Kentucky Produce Auction and the Three-Year Average Weekly Prices at Kentucky Farmer's Markets below. Price reports can be used as a great tool to give you an idea of what other producers are selling their product for and where they are selling.    

The Packer: Prices Around the Nation - linked here

University of Tennessee's Guide to Pricing: linked here  

University of Vermont's Guide to Pricing Your Farm Product: linked here  

Examples of Pricing Signage

Beef bones signage @ Good Foods Co-Op

Rolling Fork Farms Product Signage

These signs have the farm's name is large font, along with the name and cost of the item. The signage is clean, neat, and easy to read. This signage also uses eye-catching values like "shop local" and the Kentucky Proud logo.

Organic elephant garlic pricing signage

Organic Elephant Garlic Pricing Signage

This product has easy-to-read signage, along with the location of the farm it was sourced from: Casey County. 

MarketReady's Best Practices for success

  • You may not be able to charge a full "farmer's market" price in every marketing channel. 
  • Be sure to estimate your costs of producing and delivering your product. The budgets linked above are a helpful tool to use when doing this. 
  • Research prices for similar products. Price reports are very helpful in this aspect. 
  • Understand why buyers might value your product more than a wholesale product -- local, farm-fresh, etc.
  • Be prepared with quotes for your buyer. This is usually seen as a quote per pound price.