Ideas with keeping up with needed production

Discussion in 'Managing Your Flock' started by farmerbrown, Feb 3, 2009.

  1. farmerbrown

    farmerbrown Out Of The Brooder

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    Feb 3, 2009
    SW VA
    I was trying to find a recent discussion close to this but don’t see anything.

    I have been selling my “natural free range when weather always” eggs to a local shop for 10 years. Last March I upped my price to $2.60 to a local shop and they are selling for $3.00. I’m selling them on “flats” and they deal with the picky public.

    I deliver them every Tuesday and Friday there always out and now having to do a Saturday delivery. I talked to the owner’s daughter Monday and she asked me why I had slacked off on her 80 dozen a month when she has been getting 90 to 100 dozen a month since September. She also asked if I was selling them to anyone else and I told her they get all but 6 dozen a month just like it has always been. I have a few extra birds in the making but I don’t think they will be laying for 5 or 6 more weeks.

    I told her we need to up the price .10 to $.20 because there’s a shortage and she wants me to talk to her mom about it Friday. The daughter thought I should go up .15 and they should go up 20 and will talk to her mom.
    I should be fine once it warms up and can get them out side every day to roam.


    So now I need some help on what to do…

    I know I will see her on Friday and I will say something about upping the price because of the shortage but my cost is only up about 2 cents an egg since March.
    I was wondering if $3.20 sounds high these days.
     
  2. onthespot

    onthespot Deluxe Dozens

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    Riverside/Norco, CA
    in the regular chain grocery stores here a dozen brown organic eggs goes for nearly five dollars.
     
  3. CARS

    CARS Chillin' With My Peeps

    I just charge the going rate at the store. Ya, I know, my eggs are loved and healthier but people are kinda tight around here. If I charged the free-range, organic, pasture raised prices they would take me outside and beat me [​IMG]
     
  4. farmerbrown

    farmerbrown Out Of The Brooder

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    Feb 3, 2009
    SW VA
    I never thought about going to one of your grocery store that has organic eggs and see what they charge. I’ll check when I get the kids out of school.

    I always forget about grocery stores after we got our green house now we use a bulk store and a pharmacy for our stuff.

    Thank you I should have thought of that.
     
  5. CovenantCreek

    CovenantCreek Chicks Rule!

    Oct 19, 2007
    Franklin, TN
    If the store owner's daughter suggested a $0.15 price increase, that's probably a good idea -- she should know enough about the customers who buy at the store to know what they'll accept. Just because your price to produce the eggs hasn't gone up that much doesn't mean it's a bad idea. Bringing the price up now while supplies are lower will allow you keep the price up when supplies increase -- and when the cost of production does go up, you won't need to raise your price as soon and/or as much.
     
  6. Linda in San Diego

    Linda in San Diego Chillin' With My Peeps

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    May 11, 2008
    San Diego
    See this is the part I don't understand about "economy - supply and demand".

    Farmer Brown is brining in as many eggs as the hens produce, it is less than before because of the seasonal nature of the hens.

    So the store runs out within two days. What will raising the price do? It will not mean there will be more eggs. It won't affect how many hens the eggs lay this week or next week.

    The only one it affects is the person coming to the store, ready to spend a certain amount on the eggs. Will 20 cents more make them decide to buy eggs at the grocery store? Probably not, most will still buy the eggs and then grumble about the price of eggs going up.

    If your cost or the store's cost is up that is one thing. Simply to make sure the store doesn't run out - see that is where I start to get puzzled.

    Place a sign - Farm fresh......delivered to this store M, W, Sat - and the buyers can plan shopping around your delivery days - it is what I do at my local market. They are always out of half and half on Tuesday, but deliveries are on Wednesday, once I knew that I plan accordingly.
     
  7. CovenantCreek

    CovenantCreek Chicks Rule!

    Oct 19, 2007
    Franklin, TN
    Quote:When prices go up, the number of people willing to pay the price for that product may go down. Some of the people buying Farmer Brown's eggs won't be willing to pay the price increase and will begin purchasing factory farmed eggs, thus reducing the demand for Farmer Brown's eggs.

    When Farmer Brown's hens go back into full production, the demand will be less than the supply, which may prompt a price adjustment -- or simply a short term sale to pull in new buyers for the product who will be happy to pay the higher price after they discover the exceptional quality of the product.

    As prices go up on all competing products, Farmer Brown will already have his price set high enough to cover his expenses and will not need to raise the price again, making his product even more desirable to the consumer who feels they aren't getting their money's worth from the competition. Demand will begin to increase again and Farmer Brown will need to either increase his flock's ability to lay through the winter (more hens or different management choices) or increase his price again to slow the demand.
     
  8. farmerbrown

    farmerbrown Out Of The Brooder

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    Feb 3, 2009
    SW VA
    CovenantCreek very well posted. ty.

    The production is based off the birds right now. I’m producing more then what they thought they were going to need this winter but they keep selling out. If I could get 3 days of mid 70’s in a row I would get them a few extra flats but the weather will not help us out.

    The people that have been eating farm eggs for more then a few months will not last long on store eggs before they will be back. As long as were close or cheaper then the store bought eggs I feel that they will keep coming back. Were not in it for getting rich off eggs.
     
  9. CovenantCreek

    CovenantCreek Chicks Rule!

    Oct 19, 2007
    Franklin, TN
    Quote:Quite frankly, there are worse things in a retailer's life than not being able to keep a product on the shelves due to consumer demand. [​IMG]
     
  10. farmerbrown

    farmerbrown Out Of The Brooder

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    Feb 3, 2009
    SW VA
    In our county they cracked down on the permits and laws with selling goods. Before the crack down we kept one more permit but would push there limits. Now we are 100% legal on how we sell. The eggs and butchered meet can only be sold to someone with a current tax exempt permit and the food permits.

    My wife and I played the games of keeping up with selling to each person for years. But playing the games of; who wants what, how many, what day, it was $.30 cents cheaper last year, I only had one double yoke egg (I say they all have one but sometimes they have more), I don’t like double yoke eggs and you gave me 6 out of 12 of them, she got all the… I’m sure if you have ever been there you know that I only hit the top of that list.

    I also sell no antibiotic natural grass fed ground beef in 2 (2.1) pound packs to that store and right after butcher I will send them all the cuts that my wife dose not want at that round. Last year they went though 6,800 pounds ground beef and 2,000 pounds of mixed cut’s (anything and everything). The cut’s of meet are done as specials only. With the beef they know about how many packs I have and know it’s 3 to 4 weeks to get more unless it’s right on a holiday so it’s easy to keep them stocked with a little communication.

    A few times a year they will ask about getting goats butchered. I will get it in the works if they ask about it but it’s a lot of paper work and depending on the butcher’s schedule can take 5 to 7 weeks to get them done.
     

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