3 Farm Success Stories with Subscriptions
As consumers spend an increasing amount of time online, your Buyers’ expectations are being conditioned by billion-dollar brands. In fact, 93% of American adults purchased from Amazon in 2020. They have made it easier than ever to buy online, and customers no longer want to waste time purchasing the same products they know they will need next month. As Buyers look for ease and convenience, and companies seek stable revenue sources and cash flow, Amazon has led a transformation to the “Subscribe and Save” business model.
What is a subscription? A subscription is a commitment to make an on-going purchase. This model is seen in many aspects of our lives --- think television (Netflix), music (Spotify) or buying clothes (StitchFix). Businesses large and small are looking to build ongoing relationships with their customers and ensure recurring sales for peace-of-mind.
So why wouldn’t Farmers use this model too? Your Buyers are going to continue eating every day, week and month! The convenience of offering a subscription for your Farm is a huge deal and something your Buyers expect.
This blog showcases 3 real Farms that implemented subscriptions through Barn2Door to fuel consistent monthly recurring revenue and satiate the appetite of their Buyers. This is real data from American farmers like you.
1. Dairy Case Study
When the pandemic hit last year, this Dairy Farm knew they needed to pivot their business model to selling direct. They had lost their wholesale accounts and needed to double down on building a brand and a loyal customer base. Through local strategic targeting, connecting with their Church group, and engaging Facebook followers, this Farm ran targeted ads to increase awareness about their product subscriptions and build their customer base locally.
Through geographic targeting and the implementation of direct door-to-door delivery, this Farm began to offer subscriptions, which has attracted 77% of all their Registered Buyers within 7 months. Driving local awareness through the addition of branded Dairy Boxes has helped their organic expansion as well. Now, 43% of all sales for this Dairy Farm is recurring revenue for this Farm.
2. Produce Case Study
When schools, restaurants, and Farmers’ markets closed, this Produce Farm was challenged with the need to flip their business from wholesale to direct. They began contacting local media outlets to increase exposure, engaged their followers on social media, and then began offering door-to-door delivery to build their brand. This Farm also affiliated with local businesses, aligning themselves with health, wellness, and retiree centers. Narrowing their demand efforts and partnering with local companies helped this Farm build a strong community base of loyal customers. So, even after an initial surge of sales due to the pandemic, this Produce Farm has built a staple of recurring revenue to fund their business.
Within months, this Produce Farm grew its subscription revenue from just over $10K per month to over $30K per month. Now, 86% of all of their gross income comes from subscription revenue! This Farm can now plant fruit and vegetables in the ground, knowing that their harvest is sold. This financial peace-of-mind has been a game-changer for this Farm!
3. Protein Case Study
For years, this Protein Farm has run a livestock operation, supplemented with some direct-to-market sales. Sales had been spotty, despite a decent base of customers. In Spring 2020, the market change caused them to think about focusing on direct-to-consumer demand. Located two hours outside of a metropolitan area, the thought of delivery was daunting. Struggling to find a consistent revenue stream, the Farm started simple, offering direct door-to-door delivery just one day a month.
Rolling out a subscription program and simplifying packaging options to consumable sizes (5lb, 10lb, and 15lb boxes) --- complemented by direct delivery --- resulted in a massive spike in monthly recurring revenue. Within 7 months, 48% of all registered Buyers now have subscriptions, and the Farm brings in more than $10k a month in recurring subscription revenue (which is 73% of their gross income --- see below)! To keep up with demand, they’ve increased delivery days to once a week and now have guaranteed harvest dates with their processors.
The above examples are proof that regardless of the size of your operation, the subscription + delivery blueprint works. Buyers expect delivery and prefer a recurring subscription to your Farm products. Remember, Buyers are going to continue eating - and you’ve just saved them time and energy by making it convenient to subscribe to your Farm products.
The greater the diversity of Buyers you have, the more resilient your Farm business will be to economic fluctuations. Through subscriptions, these 3 Farms are enjoying peace-of-mind and greater financial security with a consistent revenue stream.
[Note: The identity of the 3 Farms above are being protected to preserve their privacy. None of these 3 Farms have been previously showcased by Barn2Door in any customer testimonials.]
We’re honored to work with 1000’s of Farms across America in all 50 states to secure recurring cash flow and offer peace-of-mind. If you’re interested in learning more about how Barn2Door can help your Farm implement subscriptions, watch this 5-minute video.