Chapter XII
MARKETING FARM PRODUCTS
The distribution of farm products on an efficient basis is one of the most difficult problems in agriculture. Because of the demand of the consumer for small quantities of products at each purchase, the breaking up of wholesale packages, involving additional labor and containers and the elimination of unfit specimens, increases handling costs and delays the arrival of the product from the farm to the consumer. In recent years the producer has sought various means of eliminating some of these costs of distribution so that he could get a larger share of the consumer’s dollar, and the consumer has welcomed the opportunity of buying products direct from the producer.
Unquestionably, one of the best means of selling farm commodities is through the medium of roadside markets that have now become so common along the principal highways of the country. These range in type from the display of a few baskets of farm commodities on the ground or on a table, with sales of $100 a year or less, to those of a more pretentious nature in which buildings and equipment are erected suitable to the purpose. That there are great possibilities of developing a successful business in selling products in this manner is evidenced by some of the more elaborate markets, transacting an annual business of $30,000 or more. In most cases these have been developed from small beginnings and the facilities have increased as the good reputation of the market has spread.
Advantages of Roadside Marketing.—From the standpoint of the producer or the operator of the roadside stand, there are certain advantages that have contributed to the growth of the movement. For example, there is no expense or time involved in delivering the products to a distant market, since the produce is sold by a member of the household, or by the operator’s employees in the larger types of markets. It is possible through such a market to build up a clientele of buyers who will return for further purchases. They will tell their friends about the good quality, dependable produce which they have been able to purchase at some particular stand. Furthermore, a wide variety of products can be sold in this way at one stand, which might have to be segregated and shipped to different markets if some other method of marketing were being followed. This would add considerably to the expense of selling, especially where the volume of each commodity is small. Furthermore, in such a method of selling, the producer comes in direct contact with the consumer. Ideas are exchanged, mutual confidence is developed and both should share financially in the advantages accruing from eliminating ordinary means of distribution.
Problems in Roadside Marketing.—On the other hand, there are certain disadvantages of roadside selling which operate against successful merchandising in such a manner. These should be fully considered in deciding how the surplus farm products are to be disposed of. Due to the difficulty experienced by many potential buyers in getting satisfactory produce, they have become discouraged and will often drive by all roadside markets rather than take a chance on buying commodities that may be misrepresented. Naturally, this works against the development of adequate business and makes it necessary for the individual to spend considerable time and effort in selling himself and his market to the public and in creating confidence and good will.
There is necessarily some loss due to depreciation in the quality of perishable commodities. In many cases it is necessary to expose these commodities to the sun and weather, and if they are not sold promptly they will not long maintain the standard of quality which the operator must have identified with his market. The operator has no knowledge of the number of customers he will have when he displays his products, nor does he know the whims of the individuals who may patronize his market that day. To avoid the losses resulting from unsold products it is desirable to have some other outlet which will absorb unused quantities, even though the price is not so good as would be secured from ordinary sales at the market. Many of the commodities can be delivered to some wholesale market to be sold for what they will bring. Another outlet that is available is through canning or preserving the commodities and selling them later in the season under the label carried by the roadside stand.
It should be borne in mind that the business of operating a roadside market has its own peculiar problems and success in it depends upon following good merchandising principles, to which are added those finer points which pertain to direct selling. The attitude of the public must be studied and plans for promoting sales must be adopted which will result in attracting and holding customers. Beyond doubt, the two most important factors in the operation of a successful roadside market are attractiveness of the stand itself and the quality of the products that are offered for sale.