How Do You Set Your Prices? ~ Advice from the Folks at the UCCE Foothill Farming Program

cooking, Eva Antczak, farmers market, Marin, market-to-table, organic, Shanti ChristensenIMG_2931

This blog first appeared on the UCCE Foothill Farming website on August 20, 2013.  The University of California Cooperative Extension (UCCE) Foothill Farming program works in partnership with farmers and ranchers across Placer and Nevada Counties to provide a range of educational training programs and workshops, farmer-to-farmer mentoring and a wide variety of events and networking opportunities.

Written by Molly Nakahara, Specialty Crops Program Representative, UCCE Foothill Farming Program.

“Set your own prices.” This piece of advice, given to me by a seasoned fruit and vegetable farmer, has proven to be one of the critical foundations of my own farm business. So, here’s a test for all of you business savvy farmers out there: What is the secret message, the subtext, the implied meaning in this great guiding sales principle?

I’ll give you a hint: It does not mean you should set prices to what you think your customers will like, or set prices based on prices at the grocery store. Any ideas?  YES!  You’ve got it: KNOW YOUR COSTS! It means set your prices based on the true costs of production. If you can embrace this concept, it will become one of the most influential tools of analysis you will use on your farm.

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