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Building a farm market

Gordon, Rosemary O

Editor's note: In the second ofa threepart series, experts discuss ways to create a customer-friendly farm market layout.

THINK like a consumer. If you want to be successful in the farm marketing business, the experts say you should know what your customers want. Do some research, check into the demographics of the area, and create a customer profile.

This may not be as difficult as it sounds. According to Carl German, extension marketing specialist at the University of Delaware and one of the authors of Guide to Planning The Farm Retail Market, future market owners should contact a local extension agent or marketing agent for more information on how to create a profile.

This information helps potential farm marketers get an idea of the age group, income level, and ethnicity in the potential site area, says German.
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"II you have a specialty crop, you can derive demand for the crop with per capita consumption and population information," he says. "Through the process of estimating, you can figure out demand for a specific product."

It's All In The Presentation

Of course, this is still just data - to turn it into sales, you'll need to create a market layout that will present those high-demand items in an appealing way It sounds rather elementary, but experts agree that the correct layout of a market can have a tremendous impact on sales. "Customers already know they are getting a much fresher product than they would in a grocery store, and that the produce is locally grown," says Ed Shenot, owner of Shenot Farm in Wexford, PA. That's what will be bringing in the crowds. Therefore, it is to the marketer's advantage to arrange the produce and other products so that employee and product movements don't disrupt customer traffic.

To make a more customer-friendly layout and expand the business, one farm market owner moved her gift shop to another location in the store. Cathy Rorhbach, of Rohrbach's Farm Market & Gift Shop in Catawissa, PA, says the decision was made to relocate the gift shop, so a much-needed expansion would be possible in the bakery and produce areas.

Initially, however, Cathy wasn't too excited about the idea. The plan her husband, Ron, presented her with included renovating an area that had previously housed old machinery and cobwebs.

But the idea worked. Floors were sanded and varnished, recalls Cathy. The renovation took about five months to complete. Now Cathy has more than 3000 square feet- up from about 800 square feet - in the Apple Core Gift Shop to display Yankee Candles, Boyd Bears, Salmon Falls Stoneware, and items from more than 100 gift companies.

Sales in the upscale gift shop have increased since moving to its new location, adds Cathy.

Demand Versus Impulse

The best way to arrange items, however, is not cut and dried. There are a couple of theories on how to emphasize specific products and arrange others. Some say demand items, such as potatoes, should be located toward the back of the store to draw customers in and get them to look at the impulse offerings displayed along the way.

Others say some demand items, specifically produce, need to be readily available to satisfy customers' needs. These items, such as strawberries, should be displayed with related items - in this case, whipped cream or shortcakes - to encourage additional purchases.

Marketing consultant Ransom Blakeley, a former extension marketing specialist at Cornell University, subscribes to the second theory, saying that it is important to have something the customer came for readily available early on in the layout so he will commit himself to the purchase. Something else that may be crucial to increasing sales is shopping carts, he says.

"Some [market owners] resist adding carts," says Blakeley. "They say it makes the market look too much like a grocery store, but it works. It will increase the sales per customer two-to-three times what it would be otherwise. Hand-held baskets are not big enough, and they weigh down customers' arms. With a cart they don't notice the weight."

As important as shopping carts may be, it also is critical that customers can view merchandise from aisle to aisle, adds German. If a customer is looking at product in one display, he should be able to view the merchandise across the aisle. This exposes him to the whole store as he completes his shopping experience. Aisles should be about 6- to 8-feet wide to accommodate the flow of customer traffic.

Create A Flow

Although displays in the sales area are important, other basic components are needed to complete the farm market including a parking lot, a produce preparation area, a storage room, a shipping and receiving area, an office, and, depending on the market's size, public rest rooms. Market owners want to locate these room and areas in places that won't disrupt the customer's shopping experience.

The preparation room and storage area should be located on the side of the building opposite from the parking lot, so if expansion is ever needed, it won't interfere with the parking area, says Blakeley.

No matter what layout is used, however, the prep area needs to be handy, but behind the sales area, says German. "If it is, product you are cleaning up before displaying, then you don't want it to be seen. The size needed for the prep and storage areas depends on the size of the market and what the market is preparing. If your market also offers baked goods, then the equipment and items needed for that also are necessary."

If you'll be grading apples or trimming vegetables, that calls for a wet prep area with a sink and running water adds German. If you are preparing produce for any type of storage, then a cooler also will be needed (see sample market layout diagram).

Types Of Storage

According to Facilities for Roadside Markets, NRAES-52, a publication from the Natural Resource, Agriculture, and Engineering Service (NRAES) Cooperative Extension in Ithaca, NY, there are three types of storage facilities that can be used in a roadside market: a 32 F room with high relative humidity (for apples, peaches, strawberries, and other cold-tolerant items), a low-humidity 550 F dry room (for tomatoes, cantaloupes, and other items harmed by low temperatures), and a common storage area that is maintained at room temperature.

To cut back on storage areas and simplify the cooling process, Blakeley, one of the authors of Facilities for Roadside Markets, recommends icing down produce in virtually all operations. "Smallscale operators can rent an ice machine fairly economically and ice their leafy green produce without having to get into refrigerated displays," he says.

In addition to the storage room, most markets will need an area for shipping and receiving, and an office area. Shipping and receiving typically will be located in the back of the market, behind the storage room.

Equipped For Success

For larger operations, a forklift and a pallet jack may be necessary in the shipping and receiving area. In most farm markets, though, the equipment list includes a cash register, scales to weigh the produce, a service counter, any equipment deemed necessary for the prep room, and of course, shopping carts.

Something else that may be needed in a large operation is public rest rooms. If people are coming a considerable distance and going to the farm market is a family outing, then rest rooms will be necessary. On the other hand, if you are dealing with a strictly local trade, then public rest rooms may not be as crucial.

If rest rooms are needed, Blakeley suggests locating them near the entrance. "That way people can check in there and then go shopping."

It is important for market owners to remember that "shopping" is the reason people come in the first place. The main goal, concludes Shenot, is to display the produce, sell it to the customers, and most importantly, satisfy them.

For more information on NRAES' Facilities for Roadside Markets, call 607-255-7654; e-mail ; .org. For more information on Guide to Planning The Farm Retail Market go to .com and click on the agri-marketing link. Direct comments or questions about this article to .

Rosemary O. Gordon

Field Editor

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