PRODUCERS: BUILDING YOUR BUSINESS |
People love shopping at Farmers’ Markets – it’s the only shop where they can talk directly to you the Producer about how and where your food has been produced, grown, bred. Once you have decided that you want to continue for the long term you now need to start thinking about moving up a gear !! So how to make sure customers know what makes you and your product special.
What do your customers see when they approach your stall ?. How will they remember you and your products ?
What makes your stall stand out ?
Step outside and take a look at your stall layout. What can you do to improve it ?.
You need to take this into account to understand why customers shop at a Farmers Market. This will help you develop your marketing approach. Customers shop at a Farmers market because:-
THIS IS WHAT IS MEANT BY THE FARMERS MARKET BRAND
Customer loyalty is defined by how willing a customer is to engage with and repeatedly purchase from your business. Returning customers bring in more revenue compared to new customers. So focusing on keeping existing customers happy can be the key to unlock growth, even during more challenging times.
Customer loyalty translates into a range of financial benefits for your business :-.
Your Brand tells customers your story in an instant. They know they can rely on you, your products and the quality of your produce. They are keen to tell their friends about you and your products. In effect they become your unofficial sales promotors !
Once you have organised your stall and production and your business is becoming successful, you should now start to think about investing in areas which will both attract new customers and make sure you don't loose existing customers.
What makes your product so good ? This is your Unique Selling Proposition.
This is what makes your product(s) stand out from others and why customers buy your products rather than others ?
Your 'USP' equates to YOUR BRAND i.e. you need to make sure customers understand the 'value of your products') e.g. "fresh", "healthy", "rare", " tasty", "no preservatives", "indulgent".
This information should be on your Member's web page:-
PRODUCT : Your product(s) must appeal to the people you hope will become your customers. This includes 'eye' appeal
PRICE : Your price should be acceptable to your customers (remember they can easily look up other retailer prices on-line)
PLACE : Make sure customers know where your produce comes from and where they can buy from you and how to contact you
PROMOTION : Tell your customers about your products, engage with them, tell them your story
PACKAGING : Make sure your customer sees and remembers your product. Remember plastic packaging can turn customers away.
The idea is that your customers will recognise your 'Brand' above others. Your Brand should be included in all your marketing material, this includes banners, 'A' Boards, fliers, stickers, business cards, social media, packaging, labels, name tags, aprons and web site i.e. anything and everything your customers see. Before committing to a BRAND design, look around see other brands work, even competitors
A brand comprises:-
You may have to include labels on all your products so use them to remind customers about you and your BRAND.
The 'Pareto principle'. This states that as a rule of thumb that many things in life and in business splits into 80%-20%. It is not exactly true but the exercise is worth while doing. Have a look at the number of items you sell. What percentage of sales or profit is made from each one ? Start adding the most profitable ones together. If you find that 60-80% of your sales and profits are derived from 20-30% of your products, so you can then see where you should be concentrating your time !! However, make sure you don't discard products which you think have future growth potential.
As a member of KFMA you will have your own Web site (to set it up or amend it, please send details to Laura@kfma.org.uk). It is your base reference point and includes all your contact information plus links to all your own web and social media sites. It should also inform customers about you (your story) and your products. Pictures are key to selling. Display your products AND your location on your web site and social media. Use snippets of your story for your social media profiles and any marketing material you print. ALWAYS link customers back to your KFMA web site shows links (or a QR code) back to your web site. Make sure your BRAND is recognisable on all your digital and printed material.
Although the development of your own web site is now relatively easy you still need to be prepared to spend time designing the format and then populating it with pictures and information. The next problem is how do you 'spread the word' to inform potential customers that you have developed your web site i.e. how do they find it amongst all the hundreds of other web sites selling similar products ! Your Member's web site on the Kent Farmers Market (KFMA) site can help you as it is already well known and attracts people (80,000 of them in 2022) who are interested in Farmers Markets. This can link to your own web site. However, you must make sure your web page and the information on your web page stands out. The KFMA web site attracts on average over 5000 views a month. This means that you already have the benefit of using this as your starting point rather than at zero which is what happens when you create your own web site i.e. not only do you have to create your own web site but then you have to inform people about it.
Your KFMA Members web site is linked from all the markets you attend to your own web and social media sites
It is essential to keep your web site up to date. Anything new (e.g. in this season or new products) should be included but out date information gives a poor impression of both you and your business.
They can use search engines (e.g. Google) to search by your Trading name and the name of a product but they also display so many possibilities. A Domain name which incorporates your Trading name helps. Don't make it too long as customers will have problems in typing it in !
If you want to create your own web site, there are realy good packages on the market where all the hard work of design and programming has been taken out of your hands. All you have to do is to choose which package is right for you
Social Media is all about the present i.e. keeping your business in the limelight, describing 'What's new', What's In season, new ideas recipes etc. The challenge is to expand your networks as quickly as possible. Look around, see if there are other sites aimed at the same sort of demographics as yours and advertise on their sites (or even better write articles for these sites). However, once you start you have to spend time updating your sites to keep them up to date.
Facebook, Instagram and Twitter are the key social media methods. All of them can be used together. All should be linked together and ALL should link both back and from your KFMA web page and ALL should incorporate your branding. The key objective is to use these systems so you can interact personally with potential customers. You can then tell them about new products, special offers etc. However, most social media will only work if your customer continually checks your social media sites. However, if you are able to obtain e-mail addresses you can then send specific information to them directly.
This should be used to both inform potential customers about you and your products. You could use Facebook to build your audience and generate leads. Facebook Adverts may be useful as you can limit the area it is displayed and consequently only locals (potentila shoppers)_will see it
It is used to inform what is going to happen shortly e.g. where you will be next week or a new product you are bringing out. Make sure you send a copy of your Twitter name to steve@kfma.org.uk and he will set you up on the KFMA Home page twitter feed (which will inform customers of your web site)
Should be used to show off pictures of you and your products. Customers love to see what is growing, being harvested, made etc and in particular see animals on your farm !
The new way of selling, using short videos explaining your product, how you make it etc. Anything to hold the potential customers attention and impress. The following offer video facilities Instagram, LinkedIn, Snapchat, TikTok, Twitter, Vimeo, WeChat.
The key is to create a script beforehand. It MUST be sharp and to the point otherwise you have not gained but lost a customer
Most social media methods tend to be a scatter gun approach to promoting your business. You have no control of who is seeing them. A more specific approach is by sending emails to specific customers. However, you will need to build up a customer database (of their email addresses) and then use a mass email marketing program (e.g. Mail Chimp) which help you format promotions, use pictures and your brand to get your message across.
The helpful customer is the one that tells you when they are unhappy with something. The least helpful is the one that doesn’t tell you but tells ten friends that they didn’t like your product and /or the market.
A customer whose problem you have solved is more loyal than customers who haven't had problems !
Remember, how you deal with a complaint could impact on the customer’s perception of the WHOLE market as well as your business.
Cash can be a limitation on sales. Customers run out of it !! Why should we expect the customer to go to a Cash point so that you can make a sale ! Do you know of other retail outlets which only accept cash ???
However, unlike other retail outlets you may sell at more than one outlet and so you need to check whether your Card Reader works in all the locations you visit (especially at Rural markets). If you have problems have a word with the Market Manager as there may be solutions to improve wi-fi reception
Can you incorporate a multiple network server or take multiple SIM cards with you (i.e. you then have to use a SIM card for different locations depending on which network works) to increase the probability of communication success
Is it worthwhile investing in a more sophisticated card reader which will help you with your administration ?
Kent Farmers Market Association are investigating different solutions to improve card reader reception. If you already have found solutions we would very much like to learn of your experiences
Simple bookkeeping helps determine if and where you make money. It enables you to balance what is in the Bank with known future expenses and incomes.
You can create your own system by using a spreadsheet (e.g. Excel).
Here are two examples types of design a system.
One displays the Months in each column Example of an Excel accounting system and the other displays Sales Products and Expense Type in each column Bookkeeping example 2
Both examples show the same result, it all depends on how you wish to display the information
KFMA have created a 'Wholesale market' which lists all Producer members who want to sell to other businesses, so restaurants, Farm Shops and other food retail outlets can use it to find specific products. Please contact Laura@kfma.org.uk if you want to be on the list (or taken off the list !)
Having managed to build up your business by yourself you will reach a point when you need to expand. This is always the downside of both making and selling your products yourself.
Depending on what you make you may be able to to contract out your production or even band together with one or more other businesses to concentrate on production and thus reduce production costs whilst expanding your business.
Usually the easiest way is to expand production and sell at more markets.
You know the production process and the additional investment required. You also have experience of selling at markets and you can train others to sell you produce.
If you expand via Wholesale you will still need to expand your production capacity but now you must rely on 3rd parties to sell your products and reduce your margins as the 3rd party AND the shop selling your produce will want to make a profit from selling your products. Another alternative is to sell directly to other retail outlets e.g. Farm Shops, Village shops. This means you will have to find these other retail outlets and make sure they offer your products appropriate shelf space, again this takes more of your time and there will be less time to spend on the production process.
You may find in the short term it would be better to hire in a specialist to put you on the right track before hiring someone else in to take over what you are doing now. You can usually find someone who has experience in marketing than someone who has the requisite artisan skills (which you most likely have !).
To be able to expand you need to determine what areas of the business you can entrust to others. Perhaps you are the only one you can trust to expand production. Is it possible to employ others to work on the mundane certain parts of the production process whilst you concentrate on the key elements.
Can you employ someone to take away the administration ?
Could you work with a specialist to build up the marketing/promotional side of the business ?.
In all cases you do not need to actually employ anyone but simply hire their time.
One of the downsides of hiring time is that you may not be in charge of all facets of their workload. You will need to change priorities. Can they cope with that ? How much will such changes costs you ? Do they have staff available when you want to change tack ?
If you are happy with the idea of employing staff should they be full time or part time ? It also means that you pick up the not just the legal responsibilities for them, but whether that are able to deliver the quality of work you want. When hiring anyone it is always advisable to create a contract of work with a proviso that if you are not happy with them or their work that the employment can be terminated after say 2 or 3 months. It is always worth while joining a reputable trade association who can relationships get difficult.
Force yourself to sit back and think hard. Your mission statement defines your business reason for existing and the aims you wish to meet. Given what you know now, where you want to be in 2 years and 5 years time. Answer the question 'Who are you serving and why ?'. This should be a very simple statement, but something which gives you enough information to help you determine the way forward. It may well be a good investment to find a suitable consultant who can offer you alternatives to explore.
How to expand the company ?
Broaden your horizon i.e.add new items for sale or expand and concentrate on what you have now ?
Need more research.................Expand on what you know
More visibility.............................Easier promotion
Spread the risks........................All 'eggs in one basket'
More potential...........................Lower costs
Reach out to new customers....Expand sales area
Lack of economies of scale......Economies of scale
There is no reason why you can't take on both routes !
If you want to expand and borrow more money you will need a professional looking accounting system. This will not only help you run the company more effectively and efficiently but if you ever need to borrow money to expand your lenders see you are professionaly competent to run your business and have all the information you will need to make decisions which affect your future. Once you begin to grow it is advisable to invest in a simple book-keeping package such as QuickBooks.
Once you have developed your Mission Plan and decided the way to grow, you will need finance to turn these plans into reality. You may need to persuade others to invest (a sort of mini 'Dragons Den'). Writing a detailed Business Plan forces you to do the detailed research as to how exactly are you going to expand, devlop your market niche and create products that people wish to buy.
The Business Plan comprises:-
Kent and Medway Growth Fund have developed a programme called The Food Accelerator which is targeted at ambitious businesses looking to grow & scale. The 4-month hands-on Accelerator Programme offers technical and business support. As well as getting the technical support and testing new product ideas, participants will receive a range of business training courses, masterclasses, mentoring and one-to-one business support.
We organise a monthly face-to face workshop to help build a sustainable and profitable business model and work on their offer and pitching skills.
This is critical to selling your food to 3rd parties (i.e. wholesale). It affects all food but mainly the preparation of produce you make. HACCP (Hazard Analysis and Critical Control Point has been developed as a food safety management system by the Food Standards Agency and their guide 'MyHACCP' is a free web tool that will guide you through the process of developing a food safety management system. You must sign up to this if you wish to sell to 3rd parties.(Some 3rd parties may wish to see your HACCP process before purchasing from you)
The 'MyHACCP' Tool enables you to produce a food safety management system that shows how your business identifies and controls any hazards that may occur in the food you make. You will find a range of resources to assist you with completing the tool and with understanding implementation of HACCP principles more generally in the Help section.
Your investment in the expansion of your business MUST include continued investment in hygiene. A score of 4, preferably 5, is essential if you wish to sell wholesale. The scores have now become a simple way for all to judge the state of your business.
Score required:-
'4' means that the business was rated as good on assessment.
'5'A Food Hygiene Rating of 5 means that the business was seen as very good.
• Food Labelling/Food Information to consumers. https://www.food.gov.uk/business-guidance/packaging-and-labelling
• General Food Law https://www.food.gov.uk/business-guidance/general-food-law
• QUID Labelling https://www.businesscompanion.info/en/quick-guides/food-and-drink/labelling-of-prepacked-foods-QUID
• Health and Nutrition Claims. https://www.gov.uk/government/publications/nutrition-and-health-claims-guidance-to-compliance-with-regulation-ec-1924-2006-on-nutrition-and-health-claims-made-on-foods
• Weights and Measures packaged goods. https://www.gov.uk/guidance/packaged-goods-weights-and-measures-regulations
• Scales in use for trade: https://www.businesscompanion.info/en/quick-guides/weights-and-measures/weighing-equipment-for-legal-use
• Distance sales. https://www.food.gov.uk/business-guidance/distance-selling-mail-order-and-delivery
• Protected Foods. https://www.gov.uk/guidance/protect-a-geographical-food-or-drink-name-in-the-uk
• Organic Products. https://www.businesscompanion.info/en/quick-guides/food-and-drink/labellling-and-describing-organic-food
• Pricing. https://www.businesscompanion.info/en/quick-guides/pricing-and-payment
• Allergens. https://www.food.gov.uk/business-guidance/labelling-guidance-for-prepacked-for-direct-sale-ppds-food-products
Their website includes a webpage which provides a good overview of potential grants see https://www.kentandmedwaygrowthhub.org.uk/learn-about-grants-and-finance/
Check their website which may also flags up other useful information e.g. Tonbridge and Malling - Click here
see - https://www.startuploans.co.uk/ (This is a Government initiative and includes 12 months free mentoring) .
Disclaimer
Any information provided by Kent Farmers Market Association is for general guidance on rights and responsibilities and Is not legal advice. If you need more details on your rights or legal advice about what action to take, please contact either KCC Trading Standards, who can provide legal compliance advice, or a knowledgeable advisor or solicitor.
We are reliant on changes to operational information being received in a timely manner. In addition, weather conditions and seasonality may impact availability of produce and stallholder attendance at markets, and so we cannot guarantee the accuracy of all information.
Copyright notice
All photos, graphics and other information on this website is copyright © by Kent Farmers Market Association or the respective photographers or acknowledged authors. All rights reserved. Use of our material is only permitted as long as it is for support of Farmers Markets in Kent. Commercial use or any use for the purpose of publication elsewhere, and by whichever media, requires written permission from the Association, who can be contacted through info@kfma.org.uk.
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