Webinar Recap: Barn2Door + ACRES Innovator Series - Tom’s Tactics to Doubling Sales
At Barn2Door, we’re proud to provide the software and the services to help 1000’s of Farms across America grow and manage direct sales. We’ve partnered with ACRES to present the National Farm Innovator Webinar Series showcasing stories about sustainable Farmers that have implemented innovative business tactics to serve their local communities, fuel sales, and save time.
We recently sat down with Tom Bennett of Bennett Farms, a pastured pork and poultry business in Michigan. If you missed the live broadcast, you can watch the 30-min video here:
In this episode of the National Farm Innovator Series, Tom shares his tactics for creating a more resilient Farm business model, the importance of pricing, and how convenient subscriptions have been the tipping point to his success. Here are the top 3 takeaways:
1. SUSTAINABLE PRACTICES LEAD TO A SUSTAINABLE BUSINESS
Starting out as a hobby Farm, Tom spoke about the importance of aligning his operations with the capabilities and goals for the Farm. As a pasture-based Farm, Tom sells online directly to its Customers, and the growth of the Farm has scaled quickly.
With streamlined operations, Tom advertises his online capabilities at the farmer’s markets, converting those Customers to online. As Buyers see the value of conveniently ordering from his web Store, Tom can bankroll production year-round. Pre-orders for seasonal and specialty products (i.e., selling out of their Thanksgiving turkeys by August) have contributed to available cash flow in the winter months.
2. DON’T BE AFRAID TO HAVE PREMIUM-PRICED PRODUCTS
With consistent demand for his products, Tom decided to test raising the price of an item by 30% (thinking it would slow sales). Surprisingly, the item continued to sell out. To cover processing fees, butcher costs, and pay himself, Tom is open about the fact that his pork and poultry are priced at a premium. This has contributed to his success as he believes Customers associate higher prices with a premium product.
Tom’s word of advice for Farmers struggling with pricing their products? It’s essential to find the price that covers your costs while still making a return on investment. It’s important to be cautious of the tipping point that will cause the volume to decline. Be able to justify your prices with the quality of your product, and don’t be afraid to have the most expensive product in your market.
3. SUBSCRIPTIONS ARE THE TIPPING POINT TO FARM SUCCESS
Implementing product Subscriptions has helped Bennett Farms smooth the flow in their sales and production. If there’s a slow day at the farmer’s market, Tom can count on the revenue that’s secured from Subscriptions every week, giving his business stable, recurring cash flow.
When paired with delivery, Tom is able to convert prospective Buyers at the farmer’s markets. Choosing the most populated areas to deliver to, Tom charges a delivery fee covering the cost of his time, making the venture profitable. 94% of Americans prefer to purchase locally, and when local Farm products are paired with convenient ordering options (like delivery and subscriptions), Buyer conversion increases.
The decision to sell direct online has allowed Tom to appeal to his Customers’ expectations of convenience and double his sales for the second year in a row. At farmer’s markets, Tom encourages Customers to purchase from him online to better plan his inventory and delight Customers with the ability to purchase anytime, anywhere. These tactics have fueled the growth and success of Bennett Farms.
What’s Next for Bennett Farms
Bennett Farms is expanding its product lines and capabilities to keep things new and fresh for Customers. Venturing into the Wholesale world is on the horizon as an exciting opportunity for Bennett Farms to explore.
We’re honored to host innovative Farmers like Tom Bennett, as he shared his tactics and advice for Farmers looking to delight their Customers with convenience and scale their operations. If you’re interested in learning how your Farm can grow and manage direct sales, watch this 5-minute video.