Can Local Farms Compete With “Big Meat” Box Delivery?
Yes! When running a small business, many perceive that large corporations will always win, especially when it comes to the cost of goods and convenience. With plenty of resources at their disposal, billion-dollar brands are shaping what consumers know and want from buying goods and services, including Food.
Companies like Butcher Box©, GoodRanchers©, and Omaha Steaks© have invested millions into building national brands and subsidizing customer incentives to promote shipping products nationwide. However, their efforts come at a huge cost - diminishing their margins and making them vulnerable to local producers.
Local Farmers and Ranchers can compete and win versus “Big Meat” Box Delivery companies in the same way that Microbreweries consistently beat out Big Beer Brands (like Budweiser©). The keys to your Farm or Ranch “beating” these “Big Meat” Box Delivery are a strong local brand, high-quality products, and personal customer relationships. What truly matters is that you are local.
Read: Brew Up Better Business: What Farmers Can Learn from Microbreweries
Read: How Farms Avoid The Freezer Business & Drive Upfront Demand
The Woes of “Big Meat” Brands
Billion-dollar brands funnel millions of dollars into marketing campaigns, ad campaigns, and Influencer Sponsorships. That’s why Big Meat Brands subsidize promotions in an attempt to drive shipping costs down. However, Big Meat Brands have high costs of customer acquisition, customer support, increased loss rates, and expensive packaging (not to mention a huge carbon footprint). Whereas, lLocal Pickups and Direct Delivery offered by local Farmers and Ranchers are far more cost-effective and personal!
In the absence of a human relationship, Big Meat Brands have lower rates of buyer loyalty versus Barn2Door’s most successful Farmers and Ranchers serving local communities (some in excess of 75%+ recurring revenue). Most local buyers would be alarmed to learn some Big Meat Brands actually source products internationally — often 1000’s of miles away.
Buyers prefer to buy from local Farmers and Ranchers, provided the purchase experience is easy and convenient.
The True Power of a Local Farm: Community
Big Meat Brands cannot compete with your Farm or Ranch because of your unique relationship with your local community. Think like a local microbrewery. While consumers could buy a commodity beer at the local pub, they prefer to enjoy a local beer even if it costs more. Buyers want to support local businesses, which allows them to put money back into their community while enjoying a local product that’s sustainably produced. The flavors of local products reflect the region, making their product unique and special.
Microbreweries do not attempt to compete with Budweiser© on price. Instead, a local brew is often 20% - 50% more expensive! Given the costs of shipping, microbreweries do not distribute nationwide. Rather than shipping their products, microbreweries focus on increasing their local Brand presence, being visible in their community, and selling direct-to-market from their pub or brewery and through local grocers and restaurants.
Today’s conscious consumers recognize that by purchasing from local producers, they are supporting local jobs (win!), local sustainable products (win!), and lowering their carbon footprint (win!). The trifecta!
As a local Farm or Ranch, you are at a competitive advantage versus Big Meat Brands in your local community. Your customers know your Farm, your story, and your handshake.
Appeal to local buyers across all channels (web, social, mobile, email, and in-person) to enable customers to truly get to know your Farm. They can interact with you on social media, read about your Farm on your website, get updates through email, and interact with you in person at pick-ups, during deliveries, at the market, or local community events (on Farm, at local schools, places of worship, or businesses).
In addition to a strong local Brand, your Farm can secure a win versus Big Meat Brands by offering a convenient purchase and fulfillment experience. With online ordering paired with a Subscription service that’s accessible through local Pickup or Direct Delivery, customers will choose to support their local Farmer or Ranchers (versus a Big Meat Brand that sources products from another state or country). You’ll win customers over by offering the same conveniences that Big Meat offer by making pick-ups and delivery accessible locally – you just have to promote it!
While your local Farm or Ranch may never have the same financial resources as the Big Meat Brands, you have something those brands will never have - your Farm has an authentic relationship with your customers. Capitalize on your local Brand and offer customers a product and experience they can’t get elsewhere. Your local community wants to support your Farm or Ranch. Be visible, make it easy and convenient, and you’ll win!
Barn2Door provides an all-in-one solution for Farmers to grow and manage their business. For more information on how successful Farms run on Barn2Door, watch this 5-minute video.
[Note, the marks included above - Butcher Box©, GoodRanchers©, Omaha Steaks© and Budweiser© - are owned and managed by their respective organizations. Their inclusion in this blog does not constitute an endorsement or criticism, but rather a simple analysis of their respective business models in contrast to local Farmers and Ranchers supported by Barn2Door. To learn more about their businesses, we encourage you to contact or research their organizations independently.]