A General Guide to Pricing for Direct Farm Marketers and Value-Added Agricultural Entrepreneurs
Establishing product prices is a challenge for most direct farm marketers and value-added agricultural
entrepreneurs. Producers often base prices on a single factor or resort to the equivalent of picking a price out of a hat. Yet pricing is an important decision that directly impacts the potential of the business to meet goals and ultimately make a profit (or loss).
Pricing decisions take time and consideration of multiple factors to be effective. Pricing is also not something that is done once and forgotten. Markets change and evolve, and prices must be evaluated often to determine whether adjustments are needed.
This publication provides information on general pricing fundamentals to help direct farm marketers and value-added agricultural entrepreneurs develop prices for their products. Topics discussed include:
• Pricing as part of the marketing plan
• Factors to consider when setting prices, including costs of production and marketing,competition and customers
• Pricing strategies to meet business goals
• The art and science of pricing
• Additional pricing resources