Pricing Veggies

Discussion in 'The big picture' started by Pakanohida, Mar 4, 2015.

  1. Pakanohida

    Pakanohida Junior Member

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    So, how do you do it?

    I recently was asked to grow some common things, but 1 really out of the norm specialty pepper. When I am all done with the season & all, how the >bleep< do I come up with pricing?

    I keep coming up with USDA sites (this seems anti-capitalist btw, being told what the price IS by the USDA), and then I find ball park estimates and so forth which I found weird. For example, I found Jalapenos are worth $0.97 per pound, but Habanero peppers are worth $6.46 per pound. Well that's all fine and good for Jalapenos, but I am also growing 2 peppers not listed.. a cherry bomb pepper, and the scary Trinadad Scorpion pepper.




    So, uhm, HELP!

    :)
     
  2. Benjy136

    Benjy136 Junior Member

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    Paco;
    The Trinadad Scorpion Peppers (2nd hottest), dried, with stems and seeds are retailing at from $120.00 to $150.00 a pound if that's any help.
     
  3. Benjy136

    Benjy136 Junior Member

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    Brian;
    The way I look at it, the child would, in all probability, be severely handicapped if he had any brain activity, having been oxygen deprived for any length of time in that climate.
     
  4. songbird

    songbird Senior Member

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    keep track of your expenses and time.

    commercial/wholesale prices are not a really good as a basis for any sort of custom growing setup.

    if you are growing for one customer exclusively then they could be nice and help you with some of the start up expenses, but be sure they know that growing things isn't always a sure bet.

    know what they want for packing and prep work, if they want you to do more prep and sorting for them then make sure it is a part of the price.

    also, delivery and return of scraps. who is doing it how often... etc.

    it may take a few years to figure things out. be patient. have fun. : )
     
  5. Pakanohida

    Pakanohida Junior Member

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    I did figure how much I need to make per plant in order to make a profit, so I think I am getting on the right track.

    Personally, I think this link is a lil non-sensical.


    Wonder if PurplePear is around and what advice he could give.
     
  6. songbird

    songbird Senior Member

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    that link had pretty basic ideas. what did you consider odd?
     
  7. Topher

    Topher Junior Member

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    1) Find your customers!

    2) Ask them what they would be willing to pay for this [show them your product].

    3) Figure out whether you can make a living at that price.

    I find that most people who are selling (particularly progressive people) go about this backwards, they try to figure out how LOW a price they can afford to sell something. When they should be figuring out how HIGH a price people are willing to pay. Take a look at Penzey's spices, they go to their farmers and ask basically, 'how much more do we have to pay you, to get a better product?' That is a great question.

    Thank You Kindly,
    Topher
     
  8. Bryant RedHawk

    Bryant RedHawk Junior Member

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    I calculate the cost to produce, add to that what my time is worth to me then add to that subtotal 22.5% for wholesale profit margin. When I go to a farmer's market I take the wholesale price and double it so I am selling at retail at the farmer's market. I've noticed that the other folks selling there are usually around 15% higher than my pricing. Since I sell to a farm market at wholesale, I asked them how much they marked up my wholesale price for their retail business, then I did the same as they do so I am not undercutting their pricing. I may even bump that up 5% just so folks will think my customer is giving them a better deal.
     

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