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FROM A PRODUCEMARKET TO A

FARMERS’ MARKET:

TRANSITIONING ANDHOW TO

STAND OUT

TN Farmers’ Market BootcampSpring 2013Janie Becker, Rutherford Co. Extension Agent and Market Manager

Photo: Yuri Krasov

Photo: Visit Jacksonville

WHAT IS A PRODUCER-ONLYMARKET?

Every booth rented by local farms/producers and staffed by the owner, family member, or employeeNo resellers or 2nd hand products

“A market at which vendors are only permitted to sell items which they have themselves produced”

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WHAT ARE THE BENEFITS?

No middle menMore potential profits to local farmsEnsure product qualityAbility to sell smaller quantities/specialty

productsBuild relationships/loyalty with your

customersConnect public with local agricultureImproves vendor-vendor relationships

WHAT ARE THE DRAWBACKS?

Potentially less selectionAvailability more sensitive to severe

weather (droughts, floods, heat, other atypical conditions)Requires education of consumersTough to verifyRequires time and money to enforce

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Give vendors a season’s notice Spend time on your rules; be clear yet

concise Encourage good will between

vendors; consider a reporting fee for accusations of reselling

MAKING THE TRANSITION TOPRODUCER-ONLY

Don’t forget to educate customers! Provide brochures, signs, handouts, etc.

on what “Producer-Only” means to the market, local farms, and to the community

MAKING THE TRANSITION TOPRODUCER-ONLY

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100% ALWAYS? Depends on market’s mission Exceptions are difficult to manage and can

create confused customers

MAKING THE TRANSITION TOPRODUCER-ONLY

The more relaxed your rules are, the more energy you will spend trying to enforce them.

Know signs of potential resales Vendor unfamiliar with product details Produce out of season Brand new boxes, crates Difficulty scheduling farm visit

Don’t be afraid to ask outright if there’s a reasonable concern

ENFORCING PRODUCER-ONLY RULES

Managers: Do not talk behind vendor’s back to others!

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Farm visits are necessary

ENFORCING PRODUCER-ONLY RULES

Producer-led markets will likely need a board to remain impartialEstablish penalties and re-evaluation

planBe firm and consistent!

ENFORCING PRODUCER-ONLY RULES

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NOW WHAT??

HOW DO YOU MAKE ITPAY OFF?

HOW CAN YOU COMPETE?

Encourage a healthy, positive marketBy all means, be friendly!Be memorable; tell your storyOffer the unexpectedGrow for flavor Provide samples

Photo: Steve Savage

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MAKE IT PERSONAL

Farm Signs, Farm Signs, Farm Signs!Put some of yourself into

sales space Photo boards/albums Props/decorations

Offer daily specialsDon’t sell yourself short

Photo: RCFM

Price cards, random product facts, etc. Think about the questions that customers

ask and make signs that answer them Vegetable varieties Storage ideas Preparation “I’m Tender; Please Don’t Squeeze Me!”

Saves your time and engages shoppers

CURE THE SHY CUSTOMERWITH SIGNS!

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You know your products best; Share that with your customer

KNOW YOUR PRODUCTS,KNOW YOUR CUSTOMERS

“Picked last night-Taste the Difference!”

“Fresh from the oven”

“Want to know more about our farm?  Just ask!”

“Stock up your

freezer!”

Don’t like a veggie? No need to let on… Find someone who loves it and get a suggestion from them.

KNOW YOUR PRODUCTS,KNOW YOUR CUSTOMERS

Growing something unusual? Offer tried and true recipes

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Get to know your fellow vendorsMaintain a cheerful marketPromote each other NO PRICE WARS!!

Photo: RCFM

Photo: Tacoma FM

BUILD RELATIONSHIPS

BUILD RELATIONSHIPS

Recognize repeat customersGive them what no

grocery store canTalk about your farm

and be willing to share information about your growing practices Photo: RCFM

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BUILD RELATIONSHIPS

Photo: RCFM Photo: Paul Aiken

FM customers used to focus on bargains.Now, they want to connect with YOU!

INNOVATION FOR THE MARKET: INCREASING SALES AND

CUSTOMERS BY PROVIDING MOREPAYMENT OPTIONS

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WHY OFFER CREDIT/DEBITPAYMENTS?

Customers are “cash poor”No ATM nearbyCard payments increase salesImprove sales of high $ products

SNAP BENEFITS(SUPPLEMENTAL NUTRITIONASSISTANCE PROGRAM)

EBT (ELECTRONIC BENEFITSTRANSFER) PAYMENTS

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SNAP AT THE MARKET

EBT sales allow whole new customer base Capitalize on the Farmers’ Market WIC

program Connect more consumers with farmers Improve health and nutrition in the

community

SNAP managed by the USDA Food and Nutrition Service

Markets must apply to accept EBT payments

Allow 45 days or more for application to be processed

ACCEPTING EBT

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First Year Results at the Rutherford County Farmers’

Market:Over 10% ($29,298) of overall market

sales were made with tokens

78% ($22,917) in credit or debitMany new sales

22% EBT ($6,381) ALL new sales!

CARD READER TYPES

Individual vendor systems, e.g., Square Central card reader for market Wired - requires electricity and phone line Needs to be staffed at all times

Mobile card reader for market Allows more freedom for staff Must carry tokens around More expensive and requires subscription

Transaction fees apply for all payment types

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HOW IT WORKS

Base card payments on scrip system Central or mobile card reader Market staff swipes card and gives tokens

in exchange — No cash Customer buys goods with tokens Vendors turn in tokens Market reimburses vendors

HOW IT WORKS

Scrip system Most use wooden tokens (paper is easily

counterfeited) If you use paper scrip, “Kan’t Kopy” paper or

similar non-photocopy-able paper is recommended.

Plastic tokens are thinner, more durable and more expensive than wood.

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Market staff swipes card and gives tokens in exchange — No cash involved

Three simple steps:1. Swipe Card2. Get Tokens3. Buy Food

HOW IT WORKS-STEP BY STEP

HOW IT WORKS-STEP BY STEP

Vendors turn in tokens Turn tokens in each day or accumulate Market gives vendor a receipt

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Market reimburses vendorsOptions:

1. Cash reimbursement when vendor turns in tokens2. Check is written to vendor when tokens are

turned in3. Receipt is issued when vendor turns in tokens;

vendors receives a check at a following market, by mail, or as direct deposit

4. Reimbursements made when a vendor reaches a set $ amount of tokens

HOW IT WORKS-STEP BY STEP

Credit/Debit Tokens No restrictions; Treat tokens like cash EBT Tokens Purchases are restricted to foods,

seeds and plants which produce food for the household to eat.

Cannot be used for “ready-to-eat” foods

Vendors cannot make change; therefore, tokens come in smaller increments

TOKEN TYPES

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Credit/Debit Front Credit/Debit Back

EBT Back$1 EBT Front 25¢ EBT Front

Scrip design must include at least these elements:

Market or association name EBT tokens marked “No change

given” Use different colors of ink on scrip if

using both debit/credit and EBT payments in market

EBT tokens in small denominations

TOKEN DESIGN

Vendor Education!! Dedicated staff/volunteers(?) At-market management Bookkeeping

Clearly marked signage at market Consistent reimbursement procedures

for vendors!

MAKING IT SUCCESSFUL

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Advertisements Newspaper, Radio, TV, etc.

Community partners Department of Human Services Health Department Housing Authority Public Transportation Parks & Recreation County Extension

MAKING IT SUCCESSFUL

http://rutherford.tennessee.edu(RCFM link in right hand column)

RCFM Online:

https://www.facebook.com/RutherfordCountyFarmersMarket

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Questions?

Emailmeat:jbecker8@utk.edu