MARKETING TO CUSTOMERS WHO WILL PAY YOUR PRICE...Cost Determines Pricing 600 bird batches Cost:...
Transcript of MARKETING TO CUSTOMERS WHO WILL PAY YOUR PRICE...Cost Determines Pricing 600 bird batches Cost:...
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MARKETING TO
CUSTOMERS WHO
WILL PAY YOUR PRICE Mike Badger
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Broiler Economics
600 Bird Batches
• Chick: $1.08
• Feed: $3.24
• Grit: $0.06
• Bedding: $0.03
• Heat: $0.10
• Labor: $0.60
• Processing: $3.25
• Total Cost: $8.36
• w/10%: $9.20
150 Bird Batches
• Chick: $1.50
• Feed: $3.00
• Grit: $0.10
• Bedding: $0.06
• Heat: $0.40
• Labor: $1.40
• Processing: $3.50
• Total Cost: $9.96
• w/10%: $10.96
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Cost Determines Pricing
600 bird batches
Cost: $9.20 per bird
• 4 lb. Carcass
• $3 profit: $3.05/lb.
• $5 profit: $3.62/lb.
• $6 profit: $3.80/lb.
• $8 profit: $4.30/lb.
150 bird batches
Cost: $10.98 per bird
• 4lb. Carcass
• $3 profit: $3.50/lb.
• $5 profit: $4.00/lb.
• $6 profit: $4.25/lb.
• $8 profit: $4.75/lb.
Note the profit difference on the similar selling prices
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Layer Economics 200 Hens
Per Hen Costs
310 Eggs/yr
• Pullet: $17.94
• Feed Cost: $36.50 • 91.25 @ $0.40
• Misc: $5.00
• Labor: $32.85 • @ $12/hr
• Total: $92.29
• Cost/Doz: $3.57
1000 Hens
Per Hen Cost
310 Eggs/yr
• Pullet: $10.81
• Feed: $36.50 • 91.25 @ $0.40
• Misc; $5.00
• Labor: $18.25 • @ $12/hr
• Total: $70.56
• Cost/Doz: $2.73
Numbers courtesy of Jeff Mattocks: Income Positive Poultry Layers
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Comparable Production
Cornish Cross (7 weeks)
• Chick: $1.50
• Feed: $3.00
• Labor: $1.40
• Proc: $3.50
• Other: $0.56
• Total: $9.96
• $2.49/lb based on 4lb
carcass
New Hamps (16 weeks)
• Chick: $2.00
• Feed: $8.40
• Labor: $2.40
• Proc: $4.00
• Other: $2.00
• Totals $18.80
• $4.70/lb based on 4lb
carcass
SPN Asheville, NC November 2016 Mike Badger | PasturedPoultryTalk.com 5
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Ways to Increase Profit
• Raise price
• Scale up batch size
• Build better systems
• Improve labor efficiency
• Cooperatively purchase
• Improve feed conversion
• Sell in markets appropriate to your scale
• Join APPPA
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A Few Notes on Pricing
• Price based on costs with caveats
• Don’t expect your customer to pay for:
• Your inefficiency (labor, water, processing, scale, stubbornness and
more)
• Feed and breed choices not in demand
• Your learning curve
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Marketing v Sales
• Marketing gets leads
• Sales gets money
• Turning leads into money takes nurturing
• How do you measure your marketing efforts? SALES.
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How do you differentiate pastured?
• Let’s talk about why pasture is different.
• Let’s hear YOUR answers
• What’s your story?
• Breed choice?
• Health benefits?
• Local?
• No-soy? No-corn? No-wheat? No-chicken?
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Finding Customers
• Prospecting
• Network
• Email / Research
• Website | Email | Social
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Prospecting with
Email Cold Calls • Build targeted prospect list
• Google, Directories, Restaurants, Friends
• Write concise message with contact info
• Create a personalized template
• Not just emails – use on phone, in person at conference,
in a postcard
• Let the prospect know what you want
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A Concise Cold Call Email
Hi, <name>!
I was browsing <a website> and came across <you>. I
think it is fabulous that you use locally grown and raised
veggies and meats as much as possible!
Although I realize that you have pastured poultry suppliers
already, I wanted to reach out and offer you one more
resource, should you find yourself in need.
Many thanks for all that you do to promote locally grown
and raised products!
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Draw Sales Funnel
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Website Basics
• You have one, right?
• Own your domain
• It’s affordable; own several
• Start based on your budget and skills
• Use for:
• Lead capture
• Marketing support
• Ecommerce
• Not every visitor is a good prospect. Use the website
(landing page) to target your customer. This will better
qualify the leads that do make it to your email list.
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Wholesale Marketing Tips
• Personal relationships – Spence
• Market your strengths – Kara Gunthorp
• Trendy but fail to recognize stories or premiums. Shop based on
convenience of Sysco truck
• Firmly committed to local. Work with you
• Set price and stick to it – Grady Phelan
• Don’t undercut your wholesale customers
• Grow organically
• Form partnerships
• Great product is expected
• Appreciate your customers – promo, support, events
• Deliver samples, offer tours, follow-up – Will Harris
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Website Optimization
• Cover the essentials (phone, email, address)
• List products and how to order
• Include service area
• Provide an email signup form
• We’re going to use this later
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Search Engine Optimization
• How does Google know to return your website for a
particular search phrase?
• By the words on your website; Google cannot read your website’s
mind
• If you know your customers, you can write content that
they want
• Don’t obsess over keywords
• Content size doesn’t matter
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Direct Response Email Marketing
• Closes the low-cost, highly effective marketing loop;
• Website attracts visitors
• Visitor becomes a lead by subscribing to list (web or market signup)
• List is actively marketed to and convert to sales (aka Nurturing)
• Good list required
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Power of Email
• 74% of consumers prefer commercial communications via
• 66% of consumers made purchase based on an email
marketing message
• 138% more is spent by consumers who receive email
offers than those who don’t
• Source: Growing Your Business with Email Marketing by
Aweber: http://pasturedpoultrytalk.com/g535
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Types of Email
• Welcome on subscription
• How to order, hours, markets attend, etc
• Autoresponder (on-boarding) sequence
• Introduction to practices, products, etc
• Broadcasts
• Farm hours, orders due, see us at market, product availability,
recipes, poultry news, etc
• Information (entertaining ok, too) that solves a problem for
the reader and shows them that you provide the solution
(by enabling them to purchase your products)
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Email Do and Never Do
• DO:
• Ask for sale/doesn’t have to be hard sell
• Listen to what people do, not what they say
• Convince people not to buy, as well as buy
• Email gives people a way to get to know you and that means some
people will not become customers—it’s ok
• NEVER
• Add people to your email list without their consent
• Use a single email that is cc’d to dozens or hundreds of emails
• Focus on writing the “perfect” email
• Speed/efficiency is part of the payoff
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Facebook in Context
• I see Facebook as a lead generator—I want all those
people to end up on my email list
• Never rely on Facebook posts as the sole way sell your
products—Facebook doesn’t show post to all friends
• All emails can be content on Facebook
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It’s All About Trust, Baby
• Recipe for trust
• Decide on relationship manager
• Planning relationship-specific strategy
• Follow through
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Tips for Negotiating
• Know your costs
• Value added asks
• Practice, practice, practice
• Don’t be “slick willy”
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Contact Mike Badger
• American Pastured Poultry Producers Association
• [email protected] | www.apppa.org | 888-662-7772
• Pastured Poultry Talk Podcast
• www.pasturedpoultrytalk.com
• Visit for list of technical recommendations
• Processing Equipment at Badger’s Millside Farm
• www.millsidefarm.com | 570-713-9282