Farm Marketing and Profits from a Natural perspective - Page 2

Quote:

Originally Posted by stonykill 

  so Shawn I guess my question for you is what is your current subject to change long term plan? 

 

 

     Mine is to continue to work towards a self sufficient flock. Self reproducing. Largely self feeding. With enough eggs to feed 2 family's and to market. Large garden plots to be re instituted. 

Thanks for asking. Sometimes when I write, especially when I am super busy and it takes me two or three different sit down times at the computer to finish, I tend to go different directions. I have a tortured mind lol!

I honestly am not sure. I have a self sufficient flock. They could self reproduce, and are mostly self feeding.

What I cuss and discuss.... largely to myself, is I see different breeds, like say Lavender Orpingtons. Their eggs can sell for $12.00 per dozen. What do Sumatra eggs go for? They're the same dang eggs that I get $2.00 per dozen out of only cost more because of breed.

Reason I didn't change out this year? Because I just got the flock established to fill my egg demand. I actually had to buy eggs earlier this year to fill demand, then wen and bought hatchery chicks from a guy that duped me into thinking they were older than what my eyeballs told me. At one time this summer between pullets, layers and roosters I had over 100 chickens running around. Couple that with my freedom rangers I had 350 birds running around. My rangers are kept completely separate in Premier electronetting.

When fall rolled around, with the molt, pullets, shortening days, etc... I had 96 birds, maybe 85 hens And was getting 12- 18 eggs per day. Through the winter (I think we are at about 9 1/2 hr of daylight currently) it increased slowly to 21, then 24 to about 3 dozen per day currently with expectations come spring of about 5 doz per day.

I am not sure whether to cull the flock or increase my marketing. Local marketing is 3 way. I advertise on FB, but in a rural area, lots selling for $1.00 doz and I can't fix stupid. No offense if you sell for that little but you're losing money if you do. Way 2 is the farm market but some competition there as well, coupled with consumers trained by stupid that $2.00 doz is letting someone make money. Way 3 is a local bounty store, but then you have to package and label according to government standards and the store gets a cut.

My way is CL. I have a sign up sheet on my website (hundreds if not thousand or so hours working on it) that shows if you help market my eggs, yours can be free. In other words sell 10 dozen at work, I give you 1 free dozen. To those buying eggs, I introduce chicken, then pork. Moderately successful thus far, but if I had Buckeyes (I live in Ohio and a rabid Ohio State Buckeye fan) or RIR or even Golden Comets, I could sell hatching eggs, incubation services, etc.... Not sure if it is worth the effort.

Enough for the day. In a few days I will try to show people how a pig can be worth $800.00 processed.

My birds have no choice but to be birds. I don't coddle. Had a young Rock the other day, couldn't stand up. Don't know why. I carried her to the feeder and she ate but still couldn't stand. One leg seemed ok, the other just kind of hung there, or flopped. 10 minutes later I got a shovel, put her neck under the handle, thanked her for the time she had given us, and finished her and fed her to the hogs. Circle of life.

Yes I felt bad and wrote a long teary blurb about being a traitor to my hogs, but in the end, it is why I raise these animals.

My birds are free to come and go as they please. There are rarely.... may 1 or 2 nights per year when their stall/coop door is closed to try to lock them down.

In summer, they MAY get 2 scoops of feed per day compared to about 3/4 of a 5 gallon bucket this winter. They are out of oyster shell right now but my eggshells are hard and thick so, I will wait a while.

Thankfully there is a little seepage spring right out the barn door so I don't even have to water them. Yay for me!

I guess I named this a marketing and profitability thread, so I guess it is time we move in that direction.

I am by profession a salesman, so some of this may come second nature to me. If at any time you have any questions, feel free to stop me and ask questions.

Marketing and profitability is a huge wide open subject, but is applicable in everything you attempt to sell.

Profitability- In its simplest terms, it means calculating your costs, subtracting from your selling price, the left over being profit.

People can spend a LOT of time, making it confusing and calculating taxes, electricity, structure costs, etc... and while technically true, there are tax benefits, long term depreciation, things that cross my eyes, so basically for the purposes of this thread, I will count acquisition costs (how much it costs to buy chicks, piglets, calves, whatever), feed costs, processing costs, marketing costs, delivery costs, and that's about it until someone reminds me of something obvious that I have left out.

I will start small with eggs. If you take in consideration the cost to buy chicks, pullets, or laying hens, add in feed costs, it is very difficult to turn a profit at less than about $1.75 per dozen if my memory serves me correctly and that is pricing 50lb of layer feed at $10.00 which I am not sure even exists anymore. Now if you are in the business of selling hatching eggs, it could be very profitable if you have a following and sell your eggs within 10 days of hatching.

I have my farm set up to sell hogs, chicken and eggs. I am building a market for my products. It is slow going but it has been rewarding.

The bottom line regarding profit is knowing your cost and refusing to sell for less than that. It is one reason I don't sell in my own area and at local farm markets.

How do I get around it? That is called marketing.

When all this first started, I was given some chickens. I built them a coop and a run. They destroyed the ground, then predators got in. I now free range. My eggs are better than anyone elses eggs.

What would you do if you saw this as an ad?

Or, Farm eggs $2.00 doz.

Or, Cage free eggs, Free range eggs, pastured eggs.....

So what?

Marketing is all about differentiating yourself from everyone else that does what you do.

1st- We live in the internet age. You can get a website up with little to no cost. I have been working on mine for 3 years but it has attracted business since the day it went live. Mine is powered by Weebly but there are many places to choose from.

2nd- If you live in an ag area, it is awfully hard to market to people that do the same thing as you or has a relative or a friend that does. Then, it comes down to price. Look at a company like Omaha Steaks. Is their beef any better or worse than what you or I can find at a local farm? Why do they command premium pricing? Why don't we? I for one am working on it. I turn down business that is not profitable, and go after business that is.

3rd- Your story- Your story is unique. Give of yourself and people will identify with you and want to do business with you just because you are you.

4th- People love to buy but hate to be sold. Tell your story but don't push your product upon them. Use your resources to tell the story and let them ask. THAT is the power.

5th- Know your market- In these trying economic times, is there anyone that can afford your premium product? Yes there are and I am proof of it. I have told my story and people have responded.

Economics 101- If I sell widgets that cost x..... If I have hogs that cost $75.00 each, feed them 800lbs of feed @ $.20 lb = $160.00  raise them to 225 lbs or 180lbs hanging weight. Processing $40.00 kill, $.40lb to package = 104.00 equals $339.00 or $1.88lb.

If I sell my pork for $2.50 per lb that equals $.62lb profit or $111.60 per hog.

If I have a story and the right customers and sell for $3.99lb or $2.11lb profit or $379.80 per hog.

20 hogs at $379.80 per hog profit equals $7596.00 profit. To do that at $.62lb you would have to sell 68 hogs to make up the difference. I don't know about you, but raising 20 hogs is a lot easier and less capital intensive (less expensive) than 68 hogs. I can raise 20 hogs on my 4 acres, 68.... no way. Well.... I suppose I could, that would be 34 hogs per 6 months, but if and when I have that many customers my profit would be $25,826.40 and guess what? I could afford to outsource the raising of those hogs that feels that $2.50lb is good profit.

Any questions?

Shall I do the same for meat chickens?

I am not an attorney and none of my writings or postings are to be construed as legal advise or pertinent to your or any state agencies.

I have not had any issues with these, BUT.... that is why I did not join my local co op, nor go certified organic. I don't have any wish to have a government official tell me what I can and cannot do with regards to my animal raising.

That said, I do not butcher meat for consumers period. All my chicken, pork and beef is processed by State inspected processors. My poultry is both State AND Federally inspected.

That is very nice indeed!