CONSIDERATIONS FOR SELLING WHOLESALE

Craig Mauney Extension Area Agent, Agriculture -

Commercial Vegetables

Katie Descieux Researcher - ASAP

Molly Nicholie

Program Director - ASAP

Entering into the Wholesale Environment

Benefits to selling in this market:

◻ Somewhere to turn with surpluses

◻ Convenience/efficiency

◻ Cross promotional opportunities

Different types of wholesale markets and distribution options:

◻Restaurants

◻Grocery

◻Distributors

◻Institutions

Restaurant

❏ Highly variable, usually close to retail price point

Grocery

❏ larger volume (variable), insurance and food safety plans often required, single or multiple locations, standard sizes/packing

Distributors

❏Distributor

❏Wholesaler

❏Broker

❏Packer

Institutions

◻ Highest volume, low price point. Highest level of purchasing requirement, often requires selling through distributor or going through bid process

Understand the industry:

◻ Product liability insurance ◻ Certifications (Organic, GAPs, AG, etc.) ◻ Vendor application process ◻ Invoicing: be professional, receipt books ◻ Communication style ■ Find out their preferred method: calls, emails,

texting, fax ■ Consider a weekly price sheet/availability

list…mimic the industry

Requirements to consider:

Requirements (continued):

◻ Delivery times (Is refrigeration necessary?) ◻ Post harvest handling (ex: squash iron spots,

potatoes) ◻ Packaging…again mimic the industry (ex: iced

broccoli) ◻ Pricing

Packaging

◻ Check with your customers, ask to see examples ◻ Check out your local distributor ◻ Packaging standard sheets & box companies ◻ Appalachian Grown branded materials available

Standard Packaging

Pricing

Factors that effect pricing: ◻ Cost of production!! Record keeping is key!

■ Variable & fixed costs ■ Soil amendments ■ Pest management ■ Labor ■ Irrigation ■ Machinery & equipment (repairs, fuel) ■ Marketing (boxes, packaging) ■ Land

◻ Loss leaders & breaking even

What products make economic sense for your farm?

Other Market Factors

◻ Seasonal trends (weather in other areas), supply and demand

◻ Specialty crops vs. commodity crops ◻ Resources for market pricing

■ WNC report http://www.ncagr.gov/markets/mktnews/RA_FV001.txt

■ Distributor price sheets (MFP, Leading Green) ■ Organic sources (Agricultural Marketing Service, Maine

Organic Farmers and Gardeners Association, Northeast Organic Farming Association of New Hampshire, Organic Farmers’ Agency for Relationship Marketing (OFARM), and the Rodale Institute)

Value Pricing

◻ What is the promotional value for the customer? ◻ Will they pay more than the national market price?

Tools for finding buyers:

◻ Look at messaging & menus ◻ Follow food trends ◻ LFG/Wholesale Local Food Guide - appalachiangrown.org ◻ Connecting with ASAP ◻ Grower-Buyer meetings - during lunch!

Katie Descieux

Data from ASAP’s Local Food Research Center

The Who's Who

L ve L cal

Policy and Contract Barriers

◻ GAP Certification

◻ Hold Harmless Agreement

◻ Liability Insurance

◻ Electronic Payment Only

◻ Thick Paperwork

Quality and Packaging Standards

Other Barriers

Other Barriers (continued)

Recommendations

◻ Do your homework

◻ Have your documentation

◻ Ask questions

◻ Sell your story

◻ Be accessible

Relationships are everything!

◻ This applies to retail & wholesale

◻ Know yourself, strengths & weaknesses

◻ Samples, samples, samples

◻ Communication is key

◻ Be persistent, ask for feedback, and be responsible for follow through, if you don’t have it…let them know!!!

◻ I talk to buyers all the time that say farmers never call them back….if you don’t have what they’re looking for, tell them what else you have.

Communication

Wholesale Marketing

❏Retain the value of local/label it local - the demand for local is high and growing. Labeling your product local and connecting it to your farm and story will appeal to consumers and increase demand for your product

Point of Purchase materials

❏Work with your wholesale accounts to label your product local and highlight your farm.

Questions?

Molly Nicholie Molly@asapconnections.org

Katie Descieux katie@asapconnections.org

Craig Mauney craig_mauney@ncsu.edu