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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

 

Provide variety in container sizes; this may be as important as offering more than one brand (except for highly advertised products).

Provide a wide variety of products for selection.

Put the customer first in selecting products.

Consider stocking private label brands in addition to nationally promoted items.

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.

Stock garden accessory products that are good impulse sales.

Consider a display of books that includes information on the products sold, such as cooking, gardening, planting, etc.

Provide the best quality product possible with the best value.

Consider meeting consumer demand for high-quality dried flower arranging and bouquets.

Periodically introduce a new product to test market the item.

Display related merchandise together in a colorful and attractive manner.

Consider incorporating the entertainment aspect of direct marketing into the farm retail market business.

Offer merchandise not readily available from other sources.

Provide a service, offering the farm retail market and/or grounds as a place for company picnics, office parties, and birthday parties.

Remember the best merchandise attracts the best customers.

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

 

Mass and/or bulk displays are effective in making customers feel they have a large selection to choose from.

Merchandise displayed at eye level sells best.

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.

Backup merchandise needs to be in stock and ready for use.

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.

Wall and background space should be fully used for displaying merchandise. Make sure customers have access to the area.

End-of-aisle display locations are effective in influencing impulse sales.

Avoid cluttered appearances at all times.

Display advertised items prominently.

Displays should be constantly restocked, kept neat, clean and fresh.

Display "specials" to create a favorable customer image for the product. Present seasonal and holiday displays prominently for full advantage.

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

 

Attach tags with colored pictures to plants and other materials as appropriate.

Use durable insert tags for identification purposes.

Group similar items together by variety and size. Use a large conspicuous sign for identification.

Place labels on items so they can be easily viewed by customers.

Make use of standard or permanent signs where appropriate.

Label all sold merchandise.

Labels should illustrate proper use, planting, care, and mature size of an item.

Use color coding to identify similar price situations.

Make sure label language is meaningful to customers and meets labeling laws.

Check signs and labels for accurate spelling.

All labels should be attractively and/or professionally done.

View labels from the customer's perspective.

Be aware of how many times customers ask the same questions.

Be sure all employees understand the importance of labeling.

 

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

 

When possible, price mark each individual item.

Use weather-proof marking pencils for pricing.

When possible, group similar items together and use a large price card over the bin.

Place price markings at proper heights for easy visibility.

Print price numbers in large sizes for easy visibility.

Consider color coding as a pricing tool.

Check readability of pricing labels.

Be sure to increase prices as wholesale prices rise.

Make sure salespersons have updated pricing information at all times.

Consider multiple pricing and other pricing techniques, where appropriate.

Be sure to evaluate the impact of sale-priced items on profits.

Make sure the price adequately reflects all charges involved.

Evaluate price reductions to move specific items.

Avoid multi-price markings to reduce confusion.

Price according to customer convenience by establishing a higher price for smaller units of sale.

 

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