| Product
Mix
The
careful selection of products and services is vital in determining the
opportunity for sales and profits. Identifying the product mix requires
a familiarity with the target customer. Market demographics can help
with the initial selection of the product mix. Once the market is in
operation, attention to customer wants and needs becomes extremely important
in building the product mix a specific clientele is seeking.
Points
to Consider in Determining Product Mix
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Provide
variety in container sizes; this may be as important as offering
more than one brand (except for highly advertised products).
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Provide
a wide variety of products for selection.
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Put
the customer first in selecting products.
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Consider
stocking private label brands in addition to nationally promoted
items. |
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Avoid
stocking up on too many items. Excessive inventory decreases profits
and ties up needed space. Where appropriate, use previous sales
patterns as a guide in ordering. |
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Stock
garden accessory products that are good impulse sales.
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Consider
a display of books that includes information on the products sold,
such as cooking, gardening, planting, etc.
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Provide
the best quality product possible with the best value.
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Consider
meeting consumer demand for high-quality dried flower arranging
and bouquets. |
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Periodically
introduce a new product to test market the item.
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Display
related merchandise together in a colorful and attractive manner.
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Consider
incorporating the entertainment aspect of direct marketing into
the farm retail market business. |
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Offer
merchandise not readily available from other sources.
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Provide
a service, offering the farm retail market and/or grounds as a
place for company picnics, office parties, and birthday parties.
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Remember
the best merchandise attracts the best customers.
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Customer
service, convenience and courtesy are potentially the retail farm
market's best merchandising tool. |
Display
Farm
retail markets can enhance sales by providing and arranging neat and
attractive displays. The following list of display ideas may help to
increase profits.
Sales
Display Ideas
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Mass
and/or bulk displays are effective in making customers feel they
have a large selection to choose from. |
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Merchandise
displayed at eye level sells best. |
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Tables,
counters, and racks should allow for as much merchandise as possible
to be exposed to the customer's line of vision. The best display
height is between the knee and eye level. When customers are observed
standing on their tiptoes, the display is too high.
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Backup
merchandise needs to be in stock and ready for use.
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Tiering
display racks gives additional exposure. Keep display heights
below the average person's reach and low enough so as not to obstruct
the view of the sales area. |
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Wall
and background space should be fully used for displaying merchandise.
Make sure customers have access to the area.
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End-of-aisle
display locations are effective in influencing impulse sales.
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Avoid
cluttered appearances at all times. |
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Display
advertised items prominently. |
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Displays
should be constantly restocked, kept neat, clean and fresh.
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Display
"specials" to create a favorable customer image for
the product. Present seasonal and holiday displays prominently
for full advantage. |
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Displays
should be properly lighted. |
Labeling
Label
every item to be sold, providing identification, use, care, and price.
This is particularly true for the farm market selling trees, bedding
plants, or related items. Customers are constantly seeking information
to help them decide whether or not to buy an item. Sales are lost when
information is unavailable. Unmarked items require the services of a
salesperson, which adds to labor costs and can create customer frustration,
especially during peak sales periods.
Suggestions
for Improving Labeling Practices
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Attach
tags with colored pictures to plants and other materials as appropriate.
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Use
durable insert tags for identification purposes.
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Group
similar items together by variety and size. Use a large conspicuous
sign for identification. |
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Place
labels on items so they can be easily viewed by customers.
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Make
use of standard or permanent signs where appropriate.
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Label
all sold merchandise. |
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Labels
should illustrate proper use, planting, care, and mature size
of an item. |
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Use
color coding to identify similar price situations.
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Make
sure label language is meaningful to customers and meets labeling
laws. |
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Check
signs and labels for accurate spelling. |
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All
labels should be attractively and/or professionally done.
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View
labels from the customer's perspective. |
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Be
aware of how many times customers ask the same questions.
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Be
sure all employees understand the importance of labeling.
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Price
Marking
The
pricing of farm retail market items is both an art and a science. The
goal in establishing prices should be to maximize profits. Profits are
determined by such factors as costs, selling price, volume of sales,
competition, merchandising mix, and market conditions. Pricing can also
be used to move inventory, promote sales, and attract buyers. As an
ingredient to merchandising, pricing and labeling of individual items
reduces selling time and inspires customer confidence. Unmarked items
can cause confusion, resulting in non-purchases or checkout error. Price
markings can be evaluated by seeking the answer to three basic questions:
Is the price easily located? Is the price readable? Is the price accurate?
Following is a list of suggestive price marking considerations:
Price
Marking Suggestions
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When
possible, price mark each individual item.
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Use
weather-proof marking pencils for pricing.
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When
possible, group similar items together and use a large price card
over the bin. |
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Place
price markings at proper heights for easy visibility.
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Print
price numbers in large sizes for easy visibility.
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Consider
color coding as a pricing tool. |
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Check
readability of pricing labels. |
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Be
sure to increase prices as wholesale prices rise.
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Make
sure salespersons have updated pricing information at all times.
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Consider
multiple pricing and other pricing techniques, where appropriate.
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Be
sure to evaluate the impact of sale-priced items on profits.
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Make
sure the price adequately reflects all charges involved.
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Evaluate
price reductions to move specific items. |
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Avoid
multi-price markings to reduce confusion.
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Price
according to customer convenience by establishing a higher price
for smaller units of sale. |
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