Friday, August 21, 2009

Underselling vs. Staying in Business


Today (Saturday) was a farmers market day. Markets have gotten more difficult as of last week a new vendor showed up and started underselling everyone else. Prices are a difficult thing to determine but they are typically based on the cost of production which includes labor, seeds/transplants, infrastructure and other factors. If a farmer is making a living from his or her farm they have to keep track of production costs. If they are selling below cost of production they can sell lots of produce but still lose money.


Some crops like carrots are very labor intensive (handweeding and thinning), resulting in a higher price. Infrastructure such as tractors, implements, deer fencing, coolers, etc. is costly (even if bought used) and takes years to accumulate. Land is perhaps one of the most difficult to find and costly investments of all.


As a vendor I don't see the market as a competition for who has the lowest prices. That mentality is counterproductive and results in a race to the bottom. Instead I think of the farmers market as a whole. Its important to consider the repercussions that arise from selling things to cheaply.


High prices don't have an immediate impact but if vendors are charging to much for their produce it can drive people away from the market.


Its been a good year for onions. They are sizing up nicely.


Carrots get a hair cut to make them more manageable.


We've started bagging up beans and peas to make them more manageable at the farmers market.


We had 1.5 inches of rain this week. The most rain we've had all summer!


Some of our meatbirds are getting to be about the right size to butcher. The roosters are trying crow, and that means its definitely time for them to go!

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