Common Sense Pricing to Increase Your Profit

Fred Funk, President of Funk’s Farm Market & Garden Center, Inc., was born and raised in Lancaster County, PA.  He began his agricultural career at a young age selling produce at farmer’s markets.  At the age of 18, he founded Funk’s Farm Market as a one-man operation. Today the market has gained 14 major additions and 130 employees. It has transitioned from a shoebox income to a $4.8 million farm market and garden center.

Over his 40+ years in the horticultural industry, Fred has been active in the agricultural community. He was recognized nationally on the cover of American Vegetable Grower in 1971 and received the first Farm Market Hall of Fame award in 1976.

Fred still operates Funk’s Farm and Garden Center with his staff. He also operates a consultation business known as F & F Consultants with a goal to put his experience to work by helping up-and-coming business people achieve the success he has enjoyed. F & F Consultants is designed to provide farm market and garden center owners and their managers with the knowledge and plans they need to advance their farm market or garden center successfully.

Over his entire marketing career, Fred has been known for his pricing skills and strategies. His market is located in one of the most competitive farm market environments in North America. He learned early in life that when everyone around you has high quality products available in the season, marketing is the name of the game. When everyone around you markets well, business success requires a sharp pencil, an understanding of what your customers value, and a willingness to use the left-brain.

This workshop thoroughly covers pricing strategies and principles that will provide any farm direct marketing and agritourism business with a reasonable return on investment. Business owners are also encouraged to register farm market managers and other department managers for this in-depth program. It’s a great opportunity to invest in your staff’s professional development.

Workshop Outline

Common Sense Pricing
       I. Your Current Method of Pricing
      II. Customer’s Comfort Zone Pricing
             -Psychological Price Barriers
      III. Common Sense Pricing to Increase Profits

Developing Your Production Costs
      I. Evaluating:
             -Agritainment
             -Signature Brands
             -“PYO”
             -Advertising Specials vs. Unadvertised, In-store Specials
             -Vender Supported Advertising
             -Press Releases
      II. Are You Actually Achieving Your Actual Margin Goal?
             -How Specials and Discounts Affect Your Margin

Pricing Strategies to Increase Sales Volume
      I. Sales, Specials, and Discounts
             -Does Discount Discount Image?
             -Key Words to Influence Sales at Point of Sale or Advertising
             -Tie-in Sales
             -Product Bundle Pricing
             -The Add-on Sale
             -Gather Customer Information
             -Multiple Pricing
             -Loss Leader
             -Club Discounts
      II. A Dozen Creative Pricing Techniques
             -Give Customers What They Want, Not Just What We Want to Sell

Pricing Strategies to Increase Margin
      I. Methods for Choosing the Margin that is Correct for You
      II. Other Pricing Strategies
             -To .99 or not to .99
      III. The Customer’s Perceptions
      IV. Pricing Dos and Don’ts 

Pricing Strategies to Increase Net Profit
      I. The Funk’s Good, Better, Best Philosophy
      II. Classifying Products by Their Margin
             -Known Value
             -Demand Items
             -Impulse Items
             -Nitch or Signature Items
             -Happy Day Items
             -Ride the Horses
      III. Changing Layout and Traffic Flow
      IV. The Art of Merchandising