Can Farmers’ Markets Help Drive Year-Round Sales? YES!
The traditional method for Farms to sell direct-to-customers is through farmers’ markets. While markets are an excellent opportunity for Farmers to meet one-on-one with customers, develop personal relationships, and be present in their local communities – the most successful Farms do not rely exclusively on selling at markets as their primary source of income. Why? Because when Farms diversify their routes to market, they can grow a much larger customer base and increase sales.
Here are three (3) reasons why successful Farms sell beyond the markets:
Markets take a percentage (%) of sales: when Farms choose other direct-to-market channels to sell to buyers, they keep more of their profits.
Markets have a capped audience: 99% of Americans don’t regularly attend farmers’ markets due to busy lives, schedules, or health concerns.
Lack of flexibility and convenience: 60% of Americans have ordered groceries online, expecting convenient fulfillment options (for pickup or delivery).
Don’t be alarmed! We encourage Farmers to participate in local markets. In fact, our most successful Farmers implement tactics at markets that can help set your business up for success long-term. Why? Because Farms that have leveraged these practices have expanded their customer base (up to 171%), increased average order sizes (up to 3x), and doubled total Farm revenue.
Here are two (2) strategies your Farm can use today that can bring more stability to your business and help generate year-round revenue:
Encourage Customers To Shop Online from your Farm
With inclement weather (hot or cold), limited hours of operation (open one or two days a week), and limited parking options at many venues, it’s not surprising that only 1% of Americans regularly attend markets. However, when your Farm is available anytime, anywhere with an online store – your doors are always “open” to accept orders:
Having an online store is great. In the middle of the night, people are still buying stuff! It’s awesome that my Farm store is accessible 24/7. We’ve never found ourselves sitting on products we couldn’t sell.
- Pastured Proteins Farmer, MI
By encouraging farmers’ market attendees to shop from your Farm online, you’ll see more consistent orders rather than spotty one-time sales. When Farmers turn market customers into loyal buyers (and drive Subscription purchases), they increase their average order size too. How? Because at markets, people have multiple vendors to choose from versus a single, designated storefront from your Farm (where they will spend more when provided fewer choices).
Here are the actionable steps your Farm can take to generate more loyal customers:
Collect emails. Use a manual sign-up sheet or QR code linking to an online form, making it easy to subscribe to your Farms email communications. Send weekly order reminders prompting consistent purchases.
Offer a promo. Print flyers showcasing your Farms products and a QR code that will email them a promo code (10% off your first online purchase). This is a great way to capture emails and spur another follow-on purchase (pre-order for pick-up at the market next week?).
Convert market booth to online Pickup station. When Farms have an online store and customers want to pick up their order, designate your market booth as a pickup point. This is a convenient way to offer convenience for customers and makes it easier to organize and pack orders.
Using in-person opportunities to drive customers to shop from your Farm online is an excellent way to grow your customer base and drive sales year-round. With customer emails, staying in touch all year is easy. In fact, our most successful Farms generate up to 80% of weekly orders through a single email.
Our Farm wouldn't exist without being online. Let's put it that way. It definitely wouldn’t be sustainable, especially in the winter. During the winter, our online sales are what make us a year-round Farm and get us back to those summer markets.
- Pork & Poultry Farmer, Midwest
Leverage Subscriptions & Pre-Orders Before Harvest
Farms that accept Pre-Orders help to spur Farm Products Subscriptions before products are even harvested. Why? Because it allows Farmers to bankroll their revenue before the season begins while guaranteeing that products will be moved.
On Barn2Door, Farmers can offer three (3) Subscription options depending on their products and seasonality: Ongoing (the Subscription never ends – e.g., eggs, cheese), Seasonal (aligning to a certain harvest season – e.g., Produce CSA), or Rolling Subscriptions (can start anytime and is set for a specific amount of weeks – e.g., Ground Beef Bundle Box).
Many Farmers who offer Seasonal Subscriptions post their Pre-Orders immediately after the current season has ended. Why? Because when your Farm is top of mind (and customers had a great emotional experience with your Farm), they are bound to sign-up for the next season while the experience is still fresh! Pre-Orders guarantee commitments from your customers, and they won’t need to remember (or be reminded) to purchase next year.
Today, our Subscriptions are paid for before we pick the produce. Our customers ask to pre-order our tomatoes starting in December! It's great when people Pre-Order months in advance to help us bankroll the business before Spring even begins.
- Farmer Joe, Dirty Girl Produce
As Farm Subscriptions have the power to generate up to 80% revenue certainty month-over-month, customers can also purchase Store Credits to “Pre-Order” products, and you can enjoy secured revenue for your business. Store Credits can also work as a gift card for your customers to send to their friends and family.
Getting your customers to purchase in the off-season with Pre-Orders or Store Credits guarantees an added source of revenue security and peace of mind knowing that products will be moved when harvested. Instead of all of your revenue coming from the summer markets, you can spread your revenue (and costs) across the year.
Your Farm doesn’t have to be 100% reliant on the summer markets to drive sales. When Farms take the step to get online, offer Pre-Orders, and cater to buyers’ expectations of convenience with Subscriptions, the winter can be profitable, leading up to the busy season again.
Barn2Door provides 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-minute video.