Once a farmer has a solid idea of their COGS, they should get an idea of what similar products they sell in bulk in their regional markets. There are several ways to collect this information. Check the local port of entry for the listed prices. Request prices from distributors (remember that this will show the price that distributors sell in a grocery store, but not the price for which they buy that product from farmers).
Or ask a potential wholesale customer what prices are acceptable to them. And finally, don't forget the corner store and the independent market (not that many are left). Selling in a small store gives you the opportunity to sell over the course of a week, rather than a day at the farmers market. Let the store owners set the prices and the percentage they will accept; if you don't like it, suggest something else, but be prepared to go somewhere else.
This is an excellent program to participate in and something you might want to check out as a small-scale organic producer. If you can manage those logistics, becoming a farmer's market seller is a great way to get your product to consumers. The first thing a farmer should know before starting to set prices for wholesale is the cost of goods sold (COGS) of their products. For example, one option for those who are passionate about food or crafts is to become a seller at a local farmers market.
Consider hanging posters in cooperatives and small natural stores or in other local places, such as schools and libraries. Either way, it requires an investment on the part of the farmer in branding, packaging and telling the story of their farm, also known as marketing. To maximize your chances of getting your first or second choice for your stand at the farmers market, contact market operators as soon as possible, well before the season begins. First, you'll need to decide how to transport all your goods and merchandise from your home or farm to the market.
Large retailers and packers are unlikely to buy products directly from a single small-scale producer, especially from a producer in a remote production area. The USDA Farm-to-School Initiative is a program that helps connect schools (K-1) with regional or local farms so that the school can serve children fresher, healthier, and locally-produced meals. For more information on the GAP and GHP programs, see your local extension office, your state Department of Agriculture, or the USDA Agricultural Marketing Service website (www. If you're passionate about good food and like working with people, becoming a seller at a farmers' market could be your perfect career move.
That's why farmers follow strict handling practices, as do those responsible for processing, transporting, storing and delivering food. Finally, when going to a farmers market, shoppers can feel good to know that they support local businesses and help boost the local economy.
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