On the eve of a Penn State football game, I have been thinking about the monetary impact tailgating has on State College, PA (and other towns with a large football following). I believe that many retailers are missing out on profits by not merchandising for tailgating season.
A tailgating study conducted by the Weber grilling company reports that over the past 12 months, 1 in 8 Americans has tailgated 3.4 times. Tailgaters also reported their main tailgating purchases. "The ‘basics’ tailgaters rank their top four foods: hamburgers (70%), brats (45%), chicken (42%) and hot dogs (42%) to the tune of $106 per tailgate or $441 in groceries per year for this activity. Another group, the ‘gourmet’ tailgaters, prefer chicken (43%), ribs (39%), brats (37%) and steak (33%) to the tune of $165 per event or $1,001 per year."
Meat is not the only merchandise tailgaters need. Other items may include veggies for grilling, wine, beer, snacks, condiments, ice, sauces, desserts, drinks, serveware, etc. Why not set up a tailgate merchandise area in your retail space? Tailgaters will appreciate the convenience of a "one-stop-shop" and you may see your sales increase because of this. Use your creativity to design a space centered around your local team and advertise, advertise, advertise!
Tailgating article
As an ag entrepreneur, have you done any merchandising for tailgating? Have you seen any increase in sales for certain products during football season?
Friday, September 24, 2010
Friday, September 17, 2010
Honing your negotiating skills
As an entrepreneur, you will need to negotiate with suppliers and clients. Many people hate negotiating because they feel it leads to tense situations and unhappiness (for possibly both parties). In an article on The Customer Collective (a forum for sales and marketing executives), author and CEO of Top Sales Associates, Johnathan Farrington, gives tips on making negotiating as painless as possible.
1. Manage your emotional state- Build rapport by matching the other person’s style, pace, and approach until you have achieved a ‘connection’. Personalize the negotiation by using “I” rather than your organization’s name. This demonstrates your belief in your proposal and highlights your credibility.
2. Look for quick mutual wins to build the belief “we can agree”- Seek to address the easy/quickest areas of agreement first to reinforce the process of agreement is simple and straightforward. If you discover an area where agreement may not be reached quickly, then agree to leave it until later.
3. Use active listening skills and ask questions to give you a greater understanding of the other person’s viewpoint- The goal of active listening is for you to hear and understand other people – their words, thoughts, and feelings, and to let them know you’ve heard and understood them. Acknowledge their motivations, feelings, and point of view, even when you don’t agree with what they are saying. Your goal is to understand the message, not judge the validity of what they say.
4. Build trust by negotiating fairly- Act with integrity and hold a healthy respect for the intentions of the individual you are negotiating with. There is always a reason why a point of negotiation is important to the buyer and if we can appreciate more about their underlying reasons, this knowledge can be used and acted upon.
article
As an ag entrepreneur, how often do you negotiate? How do you feel about negotiating? Do you find these tips to be helpful? Do you have any other tips to make negotiating less stressful?
1. Manage your emotional state- Build rapport by matching the other person’s style, pace, and approach until you have achieved a ‘connection’. Personalize the negotiation by using “I” rather than your organization’s name. This demonstrates your belief in your proposal and highlights your credibility.
2. Look for quick mutual wins to build the belief “we can agree”- Seek to address the easy/quickest areas of agreement first to reinforce the process of agreement is simple and straightforward. If you discover an area where agreement may not be reached quickly, then agree to leave it until later.
3. Use active listening skills and ask questions to give you a greater understanding of the other person’s viewpoint- The goal of active listening is for you to hear and understand other people – their words, thoughts, and feelings, and to let them know you’ve heard and understood them. Acknowledge their motivations, feelings, and point of view, even when you don’t agree with what they are saying. Your goal is to understand the message, not judge the validity of what they say.
4. Build trust by negotiating fairly- Act with integrity and hold a healthy respect for the intentions of the individual you are negotiating with. There is always a reason why a point of negotiation is important to the buyer and if we can appreciate more about their underlying reasons, this knowledge can be used and acted upon.
article
As an ag entrepreneur, how often do you negotiate? How do you feel about negotiating? Do you find these tips to be helpful? Do you have any other tips to make negotiating less stressful?
Thursday, September 9, 2010
What does "local" mean?
No legal authority (including the USDA) has declared a definition for "local", so how do you define it? Maybe the best way is to use the definition most popularly used by consumers. In a recent study conducted by the Mid-Atlantic Specialty Crop Research Initiative at Penn State, 1,710 participants from the metropolitan areas of New York City, Philadelphia, Baltimore, Washington, D.C., and Richmond were surveyed on this very topic.
The participants were surveyed on what types of food products they purchased, where they purchased these products, and what factors may have affected their purchasing behaviors. They were asked to indicate their definitions of “locally grown,” in terms of miles from their residence and in relative terms of distance from their residence. The majority of participants (78%) defined “locally grown” as 100 miles or less from their residence, as well as 84% defined “locally grown” as within their state of residence.
Are these findings enough to develop a definition of "local" or does the government need to get involved? Vermont and Maryland have developed or are in the process of developing their own definitions. In 2008, the state of Vermont developed a definition for "local"; foods could be considered local if they were grown within 30 miles of the point-of-purchase or within the state of Vermont. The state of Maryland is in the process of creating an industry advisory group of growers, retailers, processors and consumers to come up with guidelines to define "local".
As an ag entrepreneur, how do you define "local"? Are you marketing any of your products as "local"? Does the government (national or state) need to create a definition? Do you think different state definitions will help or hurt marketing?
The participants were surveyed on what types of food products they purchased, where they purchased these products, and what factors may have affected their purchasing behaviors. They were asked to indicate their definitions of “locally grown,” in terms of miles from their residence and in relative terms of distance from their residence. The majority of participants (78%) defined “locally grown” as 100 miles or less from their residence, as well as 84% defined “locally grown” as within their state of residence.
Are these findings enough to develop a definition of "local" or does the government need to get involved? Vermont and Maryland have developed or are in the process of developing their own definitions. In 2008, the state of Vermont developed a definition for "local"; foods could be considered local if they were grown within 30 miles of the point-of-purchase or within the state of Vermont. The state of Maryland is in the process of creating an industry advisory group of growers, retailers, processors and consumers to come up with guidelines to define "local".
As an ag entrepreneur, how do you define "local"? Are you marketing any of your products as "local"? Does the government (national or state) need to create a definition? Do you think different state definitions will help or hurt marketing?
Friday, August 27, 2010
Wine consumption on the rise in the U.S.
In the midst of our country's economic recession, consumers have cut back on spending, but wine does not seem to be one of those cut backs. "The 2010 Wine Handbook" (which delivers analysis on wine consumption, consumer drinking preferences, and economic/demographic data) reports that overall wine consumption in the U.S. rose 0.8% to 297.0 million 9-liter cases.
The increase is obviously not a large amount, but in an economy where many industries are just trying to stay afloat, ANY increase is eye-catching. 2009 is not the only year that wine sales have increased in the U.S.; last year was the 16th consecutive year of growing wine sales. "The 2010 Wine Handbook" also reports that domestic wines are outselling imported wines. Domestic wine sales are up 1.8% to 222.7 million cases while imports dropped 2.2% to 74.3 million cases.
Eric Schmidt, Manager of Information Services for the Beverage Information Group (the publishers of "The 2010 Wine Handbook") predicts, "As the country recovers from the recessionary environment, the wine industry continues to look positive. We expect to see wine consumption increase to 310.7 million cases by 2014."
As a winery owner, how has the recession affected your business? Have your sales increased as "The 2010 Wine Handbook" reports? As an ag entrepreneur, has this article sparked your interest in adding wine to your product offerings (for example, a cheesemaker may partner with a winery to sell wine and cheese pairings)?
The increase is obviously not a large amount, but in an economy where many industries are just trying to stay afloat, ANY increase is eye-catching. 2009 is not the only year that wine sales have increased in the U.S.; last year was the 16th consecutive year of growing wine sales. "The 2010 Wine Handbook" also reports that domestic wines are outselling imported wines. Domestic wine sales are up 1.8% to 222.7 million cases while imports dropped 2.2% to 74.3 million cases.
Eric Schmidt, Manager of Information Services for the Beverage Information Group (the publishers of "The 2010 Wine Handbook") predicts, "As the country recovers from the recessionary environment, the wine industry continues to look positive. We expect to see wine consumption increase to 310.7 million cases by 2014."
As a winery owner, how has the recession affected your business? Have your sales increased as "The 2010 Wine Handbook" reports? As an ag entrepreneur, has this article sparked your interest in adding wine to your product offerings (for example, a cheesemaker may partner with a winery to sell wine and cheese pairings)?
Friday, August 20, 2010
How will new Mexican tariffs affect U.S. ag producers?
A statement was released yesterday by the Mexican government announcing 10 new tariff items to be added to its original 99-item list released March 2009. Mexico has placed tariffs on certain U.S. ag products because it feels the U.S. isn't living up to its North American Free Trade Agreement (NAFTA) obligations.
The original 2009 list contained produce including cherry and apricots. Since the tariff was instituted, the Northwest Horticultural Council (NHC) reports that cherry and apricot producers in Idaho, Washington, and Oregon have lost about $25 million in revenue. The new list includes apples, grapefruits, and oranges. The NHC commented that, "Adding apples would be unfortunate and economically damaging. The reduction in pricing goes directly back to the grower, and it comes out of the grower’s pocket.”
Census Data shows that over $1 billion worth of produce and nuts were shipped from the U.S. to Mexico in 2009, up 45% from 2005 when the U.S. shipped approximately $748 million worth of these products.
Meat and cheese are also included in this new tariff list. Fresh cheese will be facing a 25% tariff, pork cuts will be facing a 5% tariff, and cooked pork rinds will be facing a 20% tariff. From January to June 2010, Mexico's pork imports were up 32% (totaling $261 million) as compared to January to June 2009.
The article "Mexico adds pork to tariff list" describes the affect the tariffs will have on U.S. ag producers. "Mexico is one of the biggest foreign customers for U.S. agricultural products, particularly meat, fruits and vegetables. Last year, Mexico imported U.S. pork valued at $419.6 million, second only to the $1.46 billion shipped to Japan, according to government data."
As an ag entrepreneur, do you export any of your products to other countries? If you export to Mexico, have you been affected by the new tariffs? If you export to other countries, are you afraid that these other countries will start implementing tariffs like Mexico?
The original 2009 list contained produce including cherry and apricots. Since the tariff was instituted, the Northwest Horticultural Council (NHC) reports that cherry and apricot producers in Idaho, Washington, and Oregon have lost about $25 million in revenue. The new list includes apples, grapefruits, and oranges. The NHC commented that, "Adding apples would be unfortunate and economically damaging. The reduction in pricing goes directly back to the grower, and it comes out of the grower’s pocket.”
Census Data shows that over $1 billion worth of produce and nuts were shipped from the U.S. to Mexico in 2009, up 45% from 2005 when the U.S. shipped approximately $748 million worth of these products.
Meat and cheese are also included in this new tariff list. Fresh cheese will be facing a 25% tariff, pork cuts will be facing a 5% tariff, and cooked pork rinds will be facing a 20% tariff. From January to June 2010, Mexico's pork imports were up 32% (totaling $261 million) as compared to January to June 2009.
The article "Mexico adds pork to tariff list" describes the affect the tariffs will have on U.S. ag producers. "Mexico is one of the biggest foreign customers for U.S. agricultural products, particularly meat, fruits and vegetables. Last year, Mexico imported U.S. pork valued at $419.6 million, second only to the $1.46 billion shipped to Japan, according to government data."
As an ag entrepreneur, do you export any of your products to other countries? If you export to Mexico, have you been affected by the new tariffs? If you export to other countries, are you afraid that these other countries will start implementing tariffs like Mexico?
Monday, August 16, 2010
Alerting customers about a new product, part II
I thought I would write another blog entry and continue suggesting ideas for ways to alert consumers about new products. Customers will need your ideas on how the product can be used. By developing a recipe that uses the featured product and place it near or attaching it to the package of the featured product, you may provide consumers with some inspiration. If you use newsletters to reach customers, be certain to include the recipe(s) to encourage repeat purchases. We talk a good deal about value-added processed products in this blog, but many of our readers may not have interest or facilities available to process raw items. Consider instead something that can be referred to as "value-added light." Select a recipe that lists the featured product as an ingredient along with a few other products you offer. Assemble the ingredients in quantities appropriate for the recipe, package together, and showcase it in a prominent place in your outlet.
Along with placing the recipe on the package, include a shopping list with items or ingredients that are needed for the meal but that you don't stock or sell. This way your haven't taken away all the work for consumers, compared to a completely processed product, but you have taken away the guess work as to what he/she will need to complete their meal. For example, do you produce or sell most if not all of the ingredients needed to make salsa? Can you assemble the ingredients you sell (tomatoes, black garlic, peppers, etc.) together and promote it with a recipe? Most likely there are several recipes you could use as the basis of "value-added light" products, again, even if you don't sell all the ingredients - just be sure to include the shopping list for the other items needed to complete the recipe.
Perhaps you have the space and labor available to provide consumers with a sample, either the item alone or in a recipe. Samples reduce customer risk. Why not allow them to try the item before they buy it? This helps reduce buyers’ remorse and may increase customer satisfaction with your retail outlet. Though "unmanaged" sampling, where the product is placed on tables alone and the consumer serves themselves is an easy option, think about the power of having an employee handout samples, recipes, guide the consumer to the shelf where the product is stocked, and provide additional information on how to use the featured product. You may see sales increase significantly.
Whatever strategy you choose, be sure to evaluate your return on investment (both monetarily and labor wise). Did placing more signs throughout the retail outlet that highlighted uses and benefits pertaining to the product increase sales? Did developing and publishing recipes or creating "value-added light" packages have a positive impact? Related questions could be developed for sampling and other promotions. Keep in mind that strategies that work for one product may not work for another and that more energy may need to be expended to encourage sales of more "unique" items compared to items that consumers can quickly identify a use for.
Along with placing the recipe on the package, include a shopping list with items or ingredients that are needed for the meal but that you don't stock or sell. This way your haven't taken away all the work for consumers, compared to a completely processed product, but you have taken away the guess work as to what he/she will need to complete their meal. For example, do you produce or sell most if not all of the ingredients needed to make salsa? Can you assemble the ingredients you sell (tomatoes, black garlic, peppers, etc.) together and promote it with a recipe? Most likely there are several recipes you could use as the basis of "value-added light" products, again, even if you don't sell all the ingredients - just be sure to include the shopping list for the other items needed to complete the recipe.
Perhaps you have the space and labor available to provide consumers with a sample, either the item alone or in a recipe. Samples reduce customer risk. Why not allow them to try the item before they buy it? This helps reduce buyers’ remorse and may increase customer satisfaction with your retail outlet. Though "unmanaged" sampling, where the product is placed on tables alone and the consumer serves themselves is an easy option, think about the power of having an employee handout samples, recipes, guide the consumer to the shelf where the product is stocked, and provide additional information on how to use the featured product. You may see sales increase significantly.
Whatever strategy you choose, be sure to evaluate your return on investment (both monetarily and labor wise). Did placing more signs throughout the retail outlet that highlighted uses and benefits pertaining to the product increase sales? Did developing and publishing recipes or creating "value-added light" packages have a positive impact? Related questions could be developed for sampling and other promotions. Keep in mind that strategies that work for one product may not work for another and that more energy may need to be expended to encourage sales of more "unique" items compared to items that consumers can quickly identify a use for.
Friday, August 13, 2010
Research conducted to examine the purchasing behaviors of mid-Atlantic consumers
If you are a mid-Atlantic specialty crop producer, retailer, or wholesaler, you may be interested in checking out www.midatlanticspecialtycrops.com. Under the "Newsroom" tab, you will find multiple news articles summarizing 4 surveys conducted over the past year by Penn State. The surveys explore the produce purchasing behaviors of mid-Atlantic consumers.
1,565 total participants from the metropolitan areas of New York City, Philadelphia, Baltimore, Washington, D.C., and Richmond were surveyed on what types of food products they purchased, where they purchased these products, and what variables may have affected their purchasing behaviors. Issues addressed in the consumer surveys include labeling, children in the household, origin of farmers’ market produce, food safety, snacking, certified-organics, state promotional programs, locally grown, and natural.
Some interesting information gathered:
-The majority of participants (78%) defined “locally grown” as 100 miles or less from their residence.
-29.3% of survey participants selected farmers’ markets/CSAs as their primary source of produce when local produce was in-season.
-The majority of the participants (53.8%) believed that 50-99% of produce at a farmers' market was grown by the market farmers.
-The majority of participants who reported purchasing certified-organic fruits and vegetables either made these purchases 2 to 3 times per month (30.7%) or once per week(29%).
As an ag entrepreneur, how will you use the information from these surveys in your business? Do you regularly look for research like this to learn more about your customers? What other types of research topics would help you become a better entrepreneur and/or strengthen your business?
1,565 total participants from the metropolitan areas of New York City, Philadelphia, Baltimore, Washington, D.C., and Richmond were surveyed on what types of food products they purchased, where they purchased these products, and what variables may have affected their purchasing behaviors. Issues addressed in the consumer surveys include labeling, children in the household, origin of farmers’ market produce, food safety, snacking, certified-organics, state promotional programs, locally grown, and natural.
Some interesting information gathered:
-The majority of participants (78%) defined “locally grown” as 100 miles or less from their residence.
-29.3% of survey participants selected farmers’ markets/CSAs as their primary source of produce when local produce was in-season.
-The majority of the participants (53.8%) believed that 50-99% of produce at a farmers' market was grown by the market farmers.
-The majority of participants who reported purchasing certified-organic fruits and vegetables either made these purchases 2 to 3 times per month (30.7%) or once per week(29%).
As an ag entrepreneur, how will you use the information from these surveys in your business? Do you regularly look for research like this to learn more about your customers? What other types of research topics would help you become a better entrepreneur and/or strengthen your business?
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