The 4 P’s of Marketing: Successful Farm Subscriptions
To attract and maintain Buyer relationships on your Farm, you must consistently market to customers. Knowing the customer base in your local community will allow you to reach them in attractive ways (e.g. products they desire, packaging they prefer). Farm Marketing will enable you to access more Buyers, increasing sales.
An easy way to ensure you cover all the marketing bases is by remembering the 4 P’s to entice Buyers. The 4 P’s of Farm Marketing include:
Pricing
Packaging
Placement
Product Mix
Barn2Door spoke with Laci from Tagge’s Famous Fruit & Veggie Farms to discuss these Farm Marketing tactics.
Listen to Laci’s episode:
The 4 P’s of Farm Marketing
Pricing
How a Farm prices their products directly impacts conversion and may affect your business operations and stress levels. Do not sell your products short in hopes of securing more Buyers. If you communicate the value of buying local sustainable agriculture, customers will be willing to pay more than grocery store prices. Remember, you are not seeking to compete with big box grocers; rather, position your Farm Brand as offering unique, locally-sourced products.
It is fair to consider market prices of products for sake of reference, but remember the work that you put into raising your produce, protein or dairy. If your Farm builds a personal relationship with your Buyers, those customers will be more likely to spend more. For what it’s worth, your customers regularly pay 2x for a local microbrew versus conventional beer, because a microbrew is locally sourced, tastes better, and supports local jobs.
When it comes to pricing Product Subscriptions (e.g. Community Supported Agriculture (CSA) subscriptions), encourage Buyers to purchase ahead of time, rather than waiting for the Farmers Market. Tagge Farm’s offers loyal CSA Subscribers with much better pricing versus the cost at their fruit stands, which encourages Buyers to Pre-Order.
Listen: From Hobby to Full-time Farmer
The convenience of Tagge Farm’s CSA, along with the variety of produce and box sizes, adds value to the Farm’s products for Buyers. Consistently evaluating the needs of Buyers (e.g. product range, fulfillment options, package size), increases their CSA product value as well. It is important to assess the needs of Buyers in your local community. If you find a gap in Buyer expectations, your Farm can consider filling it with something of greater value.
Transparency with pricing information, and explaining the value of your Farm products in your marketing efforts will attract Buyers. By marketing the value of your products, Buyers will understand why they should be willing to pay a higher price.
Packaging
Among US households, ⅓ of people live alone, ⅓ live with 2 people, and ⅓ live with 3 people or more. As a result, it is important to offer a variety of sizes when it comes to assembling a Farm Bundle Box. Some families need more products than others on a regular basis, which provides options to fit the needs of Buyers and attract more customers.
Tagge Farm’s offers different sized Farm Boxes. They offer a 1-person, 2-person, and 4-person box. Their 2-person box has become their most popular subscription size, with more than 500 orders the prior year. Offering a diversity of sizes makes the purchase less overwhelming for Buyers, which has helped Tagge’s increase sales significantly.
Add-ons to Product Subscriptions, too, have been a big revenue boost for Tagge’s Farm, by spurring the purchase of additional value-add products. The Farm offers a wide range of add-ons, from jams, salsas, and syrups to individual products or baked goods. Laci partners with local vendors, such as other Farms or small businesses to provide baked goods, canned items and other products made from their produce. These products increase the value of their packages, whether she includes one into a CSA box one month, or a Buyer adds it to their order.
From time-to-time, Laci likes to personalize boxes to build customer loyalty. She will add a personal thank you note to her regular customers, or first-time buyers. Laci has also included recipe cards on occasion, to encourage Buyers who may feel intimidated by cooking certain products. Thank you notes and recipe cards can include their Farm Branding, too, to remain top-of-mind. When Buyers feel appreciated and see the Farm going the extra mile, customer retention will increase.
Placement
Located in Perry, Utah, Tagge’s offers deliveries and pick-ups an hour north and south of their Farm location. Laci has set up roughly 60 drop offs conveniently located for people in different neighborhoods (often hosted for “free” by a loyal customer). Pick-ups in local neighborhoods offer Buyer convenience in the community’s ‘local loop’ (as part of their daily routines).
Offering pick-ups in neighborhoods offers good exposure for your Farm. When other neighbors see your Farm-Branded truck or van, and Buyers picking up fresh, local food, it piques their interest and encourages them to also place an order. Tagge’s Farm regularly attracts 10-15 new neighborhood Buyers every week due to Brand exposure during pick-ups and delivery.
About 10% of Tagge Farm’s CSA members opted-in to pay $15 for direct-delivery to their door-step. Often your busiest customers are willing to pay a fee for the convenience of delivery of your Farm products. Note, these Buyers typically add-on the most products and spend the most money per order, as well. Providing options for Buyers will help your Farm attract more customers and increase sales.
Product
Tagge’s offers their Farmer’s Choice CSA box, which includes fresh produce each season, chosen by their Farm crew. Standardizing your base Subscription boxes with a Farmer’s Choice model helps reduce the stress of juggling hundreds of different orders, and lowers the cost of packing. To scale your business, Laci recommends simplifying your product offering with Farmer’s Choice. Note, however, add-ons still offer Buyers the flexibility to customize their purchase.
Choosing to offer Farmer’s Choice boxes keeps your Farm in control, reduces Buyer decision fatigue, and will increase your profit margins substantially. If Buyers have too many options, they may become overwhelmed and abandon the purchase altogether. Bundling products that will successfully pair together, will inspire repeat purchases. You can introduce Buyers to new products, move all of your inventory, while also supplying their favorite products, all in one Farmer’s Choice box.
Value-add products are a special addition to any CSA box, or can be offered as an “add-on” for purchase. Buyers are often willing to pay more when they know local businesses are adding special value-added products to their Subscription boxes. By partnering with local bakers, Tagge Farm’s is able to include baked goods, such as peach pies or peach cinnamon rolls. Other vendors in their community will make goods such as peach butter. Laci loves supporting local businesses, even if it adds a little more work on her end with planning.
Tagge’s focused on add-ons last year, offering a wide range of products not usually offered in the weekly box. Offering add-ons rather than a ‘shopping cart’ helps the Farm avoid packaging mistakes. This also saves time, and helps them sell a wide variety of products.
Conclusion
Packaging and fulfilling orders in a way that pleases Buyers, but also works for your Farm, is crucial. You know your Farm products better than anyone else. Be smart with product bundles and pricing to ensure Buyers are paying for the full value of your goods. Offering Farmer’s Choice boxes allows you to simplify the purchase experience, increase Buyer conversion, and improve profits margins for your Farm.
Tagge Farm’s knows how to price and package their products for success, with a good product mix and placement options to attract more Buyers. With a strong, loyal base of CSA Subscriptions, Tagge Farm’s has enjoyed financial upsides and peace-of-mind that comes from recurring cash flow.
Barn2Door is delighted to support Tagge’s Famous Fruit and Veggies Farm. We provide an all-in-one solution to grow and manage your Farm business. If you’re curious to learn why successful Farms run on Barn2Door, watch this 5-min video.