3 Reasons Why Direct Sales Drives Farm Profits with Chucktown Acres
Barn2Door has partnered with the Rodale Institute, a nonprofit dedicated to growing the organic movement through research, farmer training, and education. As Rodale Institute has been a global leader in regenerative and organic agriculture for over 70 years, Barn2Door has partnered to provide Farm business curriculum to aid Rodale students in their go-to-market best practices for new Farmers building a direct-to-market business.
One of our Farm Advisors, Alex Russell, a regenerative Farmer from Chucktown Acres (SC), recently gave a presentation to the students at Rodale to discuss the tactics he’s used to build a thriving Farm business. We turned that presentation into a 60-minute Podcast episode that can be found on the Direct farm Podcast here:
Here are three (3) key takeaways from Alex’s presentation that any Farmer can use to grow operations and drive profits with direct-market sales:
#1: Control your Profits and Increase Your Margins
For Alex, selling direct is why he built a Farm business. He gets to control his prices and farm how he wants, not how he’s told. “I wouldn't Farm if I couldn't sell direct to my customers. The main benefit is that you can set your prices. If you're farming for a billion-dollar brand, they set your price and, therefore, control your margins. But with me, I get to control my prices, which ensures I turn a profit. Regionally, food costs are different, and if you don’t get to determine your own prices, you lose control of your business.”
“Right now, Farmers only make up 1.3% of the population in America. I found that in 1840, 70% of the U.S. population were Farmers. You basically had to Farm because you had to eat. We didn't have this globalization of a food system. Now, there are systems in place, like Barn2Door, where we can actually grow food, be a profitable business, and sell our products. That's why I sell direct.”
#2: Build a Strong, Local Farm Brand
To drive local sales and build a loyal customer base, Farmers need to make themselves present locally. With a strong, local Brand, it’s easier to increase awareness about your business, products, and practices. “When you start your own business, your company is more than just something on paper. You become a Brand, and it's usually you – the Farmer – that is the first thing people think of when they hear your Farm’s name. When my customers think of Chucktown Acres, they think about me, the cows, and what we're doing to restore the land.”
A Brand provides customers with something to connect with and become passionate about. That’s partly why people prefer to buy locally – to connect with someone in their community. For 86% of buyers, authenticity is crucial when deciding what Brands they like and support.
“People will get to know our Brand when they buy from Chucktown Acres. They understand ‘I'm buying into the system of high-quality food for my family.’ So they need to know your story, and you have to get in front of them.”
Selling direct-to-market also allows Alex to interact directly with those who enjoy the products he raises. “I love engaging with my customers. They give me feedback and share about our products with their friends. It's a huge emotional boost to my confidence as a grower because I get to talk to the people who I feed. That's a really encouraging connection because farming is hard, and it’s good to be reminded of how much impact my work has on the community – I feed people who feed their families. They trust me.”
Read: Can Farmers' Markets Help Drive Year-Round Sales? Yes!
Watch: Building Channels Online and Offline to Grow Your Farm Brand
#3: Use Subscriptions to Generate Recurring Revenue
Subscriptions are a Farm's secret weapon to lock in customer commitments throughout the year. Once Alex started his Subscription box program, the business exploded. Why? Because Subscriptions give buyers peace of mind that they’ll access high-quality food on a weekly or monthly basis.
“We’ve seen a massive increase in our business, sales, and Brand recognition since we started Subscriptions. Today, our Subscription sales are ridiculous because now, when people subscribe, they get consistent access to our products before they think about their groceries for the week. They plan their meals in advance with the stuff that’s in our Subscription Box. It makes it easy for them because they know that Food will come every week, and it’s good for us because it’s guaranteed revenue for the business.”
Customers crave convenience, which is why a Farmer’s Choice Subscription works so well. It saves Farmers the time it takes to pack orders individually, but also saves customers time as they can “click it and forget it” – receiving a pre-built Subscription box regularly.
“Our Subscriptions are Farmer’s Choice, so I pick what customers get every week. It's the same dollar amount, but we have a weekly, bi-weekly, and monthly box, and I get to move the inventory I have available! The reviews have been amazing. I’ve been told, ‘I would never remember to order, but because you bring it every week and you have my credit card on file, we want to keep this thing going!’”
Subscriptions can provide your Farm with up to 80% monthly recurring revenue. With the convenience of Subscriptions recurring regularly, your Farm becomes irreplaceable and more convenient than a trip to the grocery store. Customers won’t have to remember to order, and your Farm will enjoy regular income.
“Subscriptions are changing the game for local Farmers, and it will allow more and more people to become Farmers because it's more profitable for us. You build a loyal network [through Subscriptions]. I've got a few customers that have been on this Subscription since day one when we started it two years ago. These people will not buy meat anywhere else. I have not had a customer that wanted to do a-la-carte orders and be consistent. Not a single one.”
Read: How to Package Your Farm Subscriptions and Bundle Boxes
Listen: Navigating Requirements and Regulations with Farm Subscriptions
To access your target market, Farms need to be ready to sell direct, build a local Brand, and lock in customer commitment with Subscriptions. Without these key business tactics, it becomes more difficult to attract a strong, loyal customer base. Alex has used these tactics to transform his business, become a local staple in the community, and build lasting relationships with customers in his community.
Alex Russell started his Farm after his internship on Joel Salatin's Polyface Farm. Currently, Chucktown Acres provides Customers with high-quality proteins and U-Pick strawberries. Alex found his passion for farming after discovering how industrial agriculture has changed how Americans consume food. Read more about Chucktown Acres here.
Barn2Door provides an all-in-one solution for Farmers to grow and manage their business. If you’re curious to learn why successful Farmers run on Barn2Door, watch this 5-minute video.