16 Lesson Plans to Prepare Small - PowerPoint Presentation

1. 16 Lesson Plans to Prepare Small and Mid-scale Farmers to Enter Food Hubs, Groceries, Restaurants and Cooperatives

2. Module 2.2Building Relationships with BuyersThis PowerPoint presentation is a companion resource to the curriculum “Baskets to Pallets” available by request at http://smallfarms.cornell.edu/projects/wholesale/ Please see ‘Module 2 – Marketing’ for additional teaching resources.Stick and Stone Farm, Chaw Chang & Lucy Garrison-Clauson

3. Farmer-Buyer Video SeriesFood Hub Video: Headwater Food Hub and Fisher Hill Farm. Sections include:Clip 1: Intro, Advantages & Challenges of WholesaleClip 2: Expectations, Quality and Packaging Clip 3: Food Safety Clip 4: Engaging new FarmersGrocery Store Video: Wegmans and Blackman Farm Homestead. Sections include:Clip 1: Intro and Buyer-Seller Relationships/MarketingClip 2: CommunicationClip 3: Food SafetyClip 4: Advice to New Growers

4. Farmer-Buyer Video Series-Food Hubs: Clip 1: Intro, Advantages & Challenges of Wholesalehttps://www.youtube.com/watch?v=965npUivHRo&feature=youtu.be

5. Key Steps in Building Wholesale Customer Relationships: +’s and –’s with marketing channelsRestaurantsFood HubsGrocery StoresStrengthsWeaknessesChefs generally get really excited about farm fresh products-fun to work withRestaurants can increase visibility of a farm business though source identification on menusFlexible market with regard to price paid and quality & consistency neededRequire a smaller quantity of product neededCan move large volume of particular productThey often have own freight systemThey may do on-farm pick ups, which helps with logistical challengesOften have a mission to source from local farmsLocation dependent, the market may be saturatedOften not consistent buyersTakes more active marketing to sell through restaurants, which is time consumingNeed large quantity of single productConsistent quality is required (sizing, grading)Hubs are a middleman, which could mean lower pricesCan move large quantityThey may source identify, which helps with farm promotion and to attract potential new buyersFairly consistent buyer if the relationship is strongMay be hard to get in the front door with buyersStore may already by sourcing locally and have their needs met (competition)Chains often required GAPsIt can be a more price sensitive marketing outlet

6. Farmer-Buyer Video Series-Wegmans: Clip 1: Intro and Buyer-Seller Relationships/Marketinghttps://www.youtube.com/watch?v=U1jjC0wCJmM&feature=youtu.be

7. Key Steps in Building Wholesale Customer Relationships: Finding Wholesale MarketsLocal grocery stores: Approach the appropriate manager (i.e. produce, meat, bakery) in individual grocery stores/cooperativesLook up regional/national food distributors and cold call until you find the right personResearch restaurants in the areaResources to engage to find buyers:Cornell Cooperative ExtensionNYS Ag and MarketsInternet“There’s so much networking that happens. My contacts would help connect me to buyers, they would introduce us via email.”

8. Key Steps in Building Wholesale Customer Relationships: Making the ConnectionDetermine who the best point of contact is. This should be the food purchaser/decision maker.If you’re not sure who the food purchaser is, ask whomever answers the phone/email and make note of the correct person’s name and direct contact info.In-person is best when you will likely meet them as a part of doing business (i.e. delivering product)Phone calls are often faster and more efficient (unless doing personal deliveries)Email is best if trying to set up an in-person meeting, or to maintain a connection with past customers (sending out weekly price lists and newsletters)Texting is becoming more useful than emails with certain customers, but determine that’s the preferred method of communication before employing

9. Key Steps in Building Wholesale Customer Relationships: Making the Connection“A huge part of doing business with you is that they actually like you as a person. Being friendly really helps. I make business decisions that way. Obviously we compare prices and whatnot, but if I don’t like a person for whatever reason, I am not going to buy from them.”Research the buyer before you call. Do they care about local? Is that a selling point you want to make? Do they just want product?Ask the buyer what their needs are and be prepared to have a discussion as to how you can meet those needsRefer to the tip sheet for more detailed information on the initial cold call

10. Key Steps in Building Wholesale Customer Relationships: Define ExpectationsDelivery (time, days, mode of delivery) Billing/payment/pricingSet up ordering process (best time and method of communication)Quality standards and possible product guarantee Determine if certain levels of insurance and/or types of food safety certifications are required/preferred “The relationship [with a wholesale buyer] is more about trying to solve two problems-price and logistics. If you can solve those problems, you can start worrying about whether or not they’re going to buy your stuff. If you can’t solve those two problems, then it’s not going to work.”

11. Key Steps in Building Wholesale Customer Relationships: Partners in PromotionTest what’s right for your farm and your wholesale marketsAsk your wholesale buyer how you can help identify your productPossible promotional ideas include:Help buyers tell your farm storyProvide any pertinent marketing materialsOffer to do promotional eventsBring local samplesEmail weekly newsletters/pricelists  “We spend very little time promoting our product, mainly through weekly pricelist newsletters. Our marketing budget is $0”.

12. Key Steps in Building Wholesale Customer Relationships: Ongoing and timely communicationNotify customer of any changes in quality, quantity, delivery days/time with as much notice as possible Determine preferred/best mode of communication and establish a backup plan/person to speak with Send updated weekly product/price listsConduct follow up calls with customers as you’re building a relationship.  ASK:How was the product?  Pack size?Are you satisfied?  Can you change something to make the purchase a better customer experience? “There are definitely times we’ve had to short people, and I would immediately call them and tell them what’s going on and why we’re short. Everybody is understanding, but if you just don’t contact them, then forget about it, they’re done with you”

13. Farmer-Buyer Video Series-Wegmans: Clip 2: Communicationshttps://www.youtube.com/watch?v=CNt_8RKo9hA&feature=youtu.be

14. Role Playing ExerciseBreak into small groups of 3-4 peopleDiscuss best practices for a farmer to use in communicating with a wholesale buyerReview the tip-sheet provided2 volunteers for sample roleplaying?? 1 farmer and 1 buyer Audience-listen for best practices and note potential areas of improvement