MARKETING TO

CUSTOMERS WHO

WILL PAY YOUR PRICE Mike Badger

Broiler Economics

600 Bird Batches

• Chick: $1.08

• Feed: $3.24

• Grit: $0.06

• Bedding: $0.03

• Heat: $0.10

• Labor: $0.60

• Processing: $3.25

• Total Cost: $8.36

• w/10%: $9.20

150 Bird Batches

• Chick: $1.50

• Feed: $3.00

• Grit: $0.10

• Bedding: $0.06

• Heat: $0.40

• Labor: $1.40

• Processing: $3.50

• Total Cost: $9.96

• w/10%: $10.96

Cost Determines Pricing

600 bird batches

Cost: $9.20 per bird

• 4 lb. Carcass

• $3 profit: $3.05/lb.

• $5 profit: $3.62/lb.

• $6 profit: $3.80/lb.

• $8 profit: $4.30/lb.

150 bird batches

Cost: $10.98 per bird

• 4lb. Carcass

• $3 profit: $3.50/lb.

• $5 profit: $4.00/lb.

• $6 profit: $4.25/lb.

• $8 profit: $4.75/lb.

Note the profit difference on the similar selling prices

Layer Economics 200 Hens

Per Hen Costs

310 Eggs/yr

• Pullet: $17.94

• Feed Cost: $36.50 • 91.25 @ $0.40

• Misc: $5.00

• Labor: $32.85 • @ $12/hr

• Total: $92.29

• Cost/Doz: $3.57

1000 Hens

Per Hen Cost

310 Eggs/yr

• Pullet: $10.81

• Feed: $36.50 • 91.25 @ $0.40

• Misc; $5.00

• Labor: $18.25 • @ $12/hr

• Total: $70.56

• Cost/Doz: $2.73

Numbers courtesy of Jeff Mattocks: Income Positive Poultry Layers

Comparable Production

Cornish Cross (7 weeks)

• Chick: $1.50

• Feed: $3.00

• Labor: $1.40

• Proc: $3.50

• Other: $0.56

• Total: $9.96

• $2.49/lb based on 4lb

carcass

New Hamps (16 weeks)

• Chick: $2.00

• Feed: $8.40

• Labor: $2.40

• Proc: $4.00

• Other: $2.00

• Totals $18.80

• $4.70/lb based on 4lb

carcass

SPN Asheville, NC November 2016 Mike Badger | PasturedPoultryTalk.com 5

Ways to Increase Profit

• Raise price

• Scale up batch size

• Build better systems

• Improve labor efficiency

• Cooperatively purchase

• Improve feed conversion

• Sell in markets appropriate to your scale

• Join APPPA

A Few Notes on Pricing

• Price based on costs with caveats

• Don’t expect your customer to pay for:

• Your inefficiency (labor, water, processing, scale, stubbornness and

more)

• Feed and breed choices not in demand

• Your learning curve

Marketing v Sales

• Marketing gets leads

• Sales gets money

• Turning leads into money takes nurturing

• How do you measure your marketing efforts? SALES.

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How do you differentiate pastured?

• Let’s talk about why pasture is different.

• Let’s hear YOUR answers

• What’s your story?

• Breed choice?

• Health benefits?

• Local?

• No-soy? No-corn? No-wheat? No-chicken?

Finding Customers

• Prospecting

• Network

• Email / Research

• Website | Email | Social

Prospecting with

Email Cold Calls • Build targeted prospect list

• Google, Directories, Restaurants, Friends

• Write concise message with contact info

• Create a personalized template

• Not just emails – use on phone, in person at conference,

in a postcard

• Let the prospect know what you want

11

A Concise Cold Call Email

Hi, <name>!

I was browsing <a website> and came across <you>. I

think it is fabulous that you use locally grown and raised

veggies and meats as much as possible!

Although I realize that you have pastured poultry suppliers

already, I wanted to reach out and offer you one more

resource, should you find yourself in need.

Many thanks for all that you do to promote locally grown

and raised products!

Draw Sales Funnel

Website Basics

• You have one, right?

• Own your domain

• It’s affordable; own several

• Start based on your budget and skills

• Use for:

• Lead capture

• Marketing support

• Ecommerce

• Not every visitor is a good prospect. Use the website

(landing page) to target your customer. This will better

qualify the leads that do make it to your email list.

14

Wholesale Marketing Tips

• Personal relationships – Spence

• Market your strengths – Kara Gunthorp

• Trendy but fail to recognize stories or premiums. Shop based on

convenience of Sysco truck

• Firmly committed to local. Work with you

• Set price and stick to it – Grady Phelan

• Don’t undercut your wholesale customers

• Grow organically

• Form partnerships

• Great product is expected

• Appreciate your customers – promo, support, events

• Deliver samples, offer tours, follow-up – Will Harris

Website Optimization

• Cover the essentials (phone, email, address)

• List products and how to order

• Include service area

• Provide an email signup form

• We’re going to use this later

16

Search Engine Optimization

• How does Google know to return your website for a

particular search phrase?

• By the words on your website; Google cannot read your website’s

mind

• If you know your customers, you can write content that

they want

• Don’t obsess over keywords

• Content size doesn’t matter

17

Direct Response Email Marketing

• Closes the low-cost, highly effective marketing loop;

• Website attracts visitors

• Visitor becomes a lead by subscribing to list (web or market signup)

• List is actively marketed to and convert to sales (aka Nurturing)

• Good list required

18

Power of Email

• 74% of consumers prefer commercial communications via

email

• 66% of consumers made purchase based on an email

marketing message

• 138% more is spent by consumers who receive email

offers than those who don’t

• Source: Growing Your Business with Email Marketing by

Aweber: http://pasturedpoultrytalk.com/g535

Types of Email

• Welcome on subscription

• How to order, hours, markets attend, etc

• Autoresponder (on-boarding) sequence

• Introduction to practices, products, etc

• Broadcasts

• Farm hours, orders due, see us at market, product availability,

recipes, poultry news, etc

• Information (entertaining ok, too) that solves a problem for

the reader and shows them that you provide the solution

(by enabling them to purchase your products)

Email Do and Never Do

• DO:

• Ask for sale/doesn’t have to be hard sell

• Listen to what people do, not what they say

• Convince people not to buy, as well as buy

• Email gives people a way to get to know you and that means some

people will not become customers—it’s ok

• NEVER

• Add people to your email list without their consent

• Use a single email that is cc’d to dozens or hundreds of emails

• Focus on writing the “perfect” email

• Speed/efficiency is part of the payoff

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Facebook in Context

• I see Facebook as a lead generator—I want all those

people to end up on my email list

• Never rely on Facebook posts as the sole way sell your

products—Facebook doesn’t show post to all friends

• All emails can be content on Facebook

It’s All About Trust, Baby

• Recipe for trust

• Decide on relationship manager

• Planning relationship-specific strategy

• Follow through

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Tips for Negotiating

• Know your costs

• Value added asks

• Practice, practice, practice

• Don’t be “slick willy”

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Contact Mike Badger

• American Pastured Poultry Producers Association

• grit@apppa.org | www.apppa.org | 888-662-7772

• Pastured Poultry Talk Podcast

• www.pasturedpoultrytalk.com

• Visit for list of technical recommendations

• Processing Equipment at Badger’s Millside Farm

• www.millsidefarm.com | 570-713-9282