02-28-11 Regular Meeting, Public Hearing and Workshop Meeting of La Porte City Council

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In addition to following health regulations, follow Packaging and Grading regulations about collecting sales tax. Sales tax must be collected on all items sold by persons who did not produce Thoughts to Consider them. This is a good reason to sell only farmer- owned, raw g agricultural products grown by the seller. • Sell quality produce. Pricing One advantage of the farmers' market is that most customers come from the immediate vicinity of the market. This permits the offering of ripe, ready -to -eat produce Thoughts to Consider which might be rejected by wholesalers who would need • Post prices. to receive it at a less- mature stage to permit handling and • Price above wholesale, but usually below retail. shipping. • Don't compete with other market sellers. Only good produce should be offered for sate at a farmers' market, but clearly, it is unnecessary to offer only Buyers patronize farmers' markets not only for high U.S. #1 grade as may be required with wholesale or quality but also for economy. Statistics show quality is institutional markets. It is better for the seller to take any more frequently cited as a reason for shopping at farmers' picked -over residual "junk" home than try to move it at a markets than favorable prices. Since there are no bargain basement price; let the "undertaker" buy it as a middlemen to pay, selling below retail still generates last resort. Price cutting games are won by the consumers, greater profits to the grower than he or should would not by the producers. receive from selling to brokers or middlemen buyers, Attractive displays with readable information are great providing costs are carefully controlled. Sometimes, if helps in selling. In addition, follow these pointers: quality and demand justify, pricing at or even above retail • use contrasting colored items to call attention to each may be appropriate. offering (examples: red peppers beside zucchini, Where wholesale market price quotes are available unhusked corn beside carrots, bell peppers beside by telephone, such as the Cincinnati market, a good plan yellow squash); might be to add 10 to 15% to the wholesale price to • be sure produce is clean cl (no dirt); establish the selling price. Prices may also be less of an • don'tdisplay items clean fects,suchasinsectdamage obstacle if smaller -sized packages are available. If food stamps are accepted, the level of prices will have less • or spoilage; effect on sales. Will credit cards be accepted? use large bulk displays if possible; and • Sellers at a farmers' market should be especially offer more than one package size. careful not to engage in price wars with each other, or B sure containers are attractive and clean. When consumers will expect it and wait. Establish a fair price selling by weight, be sure the package actually contains and stick with it. The price cutter may sell out (at little or enough produce to meet the weight specified. Weight no profit) and go home; regardless, fairly priced quality does not include the container. produce will always sell. A typical comparison of supermarket and farmers' market prices in the Lexington vicinity during June to Building a Clientele of September indicates: g Farmers' Market Price Shoppers and Sellers Item as % of Supermarket's Thoughts to Consider Tomatoes 68 • Sell consistent quality. Summer Squash 62 • Be friendly and interested in customers. Onions 63 • Establish policies helpful to sellers. Potatoes 76 • Sell regularly and stay at the market. Sweet Corn 68 Bell Peppers 73 Cucumbers 88 The best way for a seller to succeed in a farmers' Beans 82 market is to develop repeat customers who return time after time. When the seller sells regularly, preferably from the same location, and comes each day or on the same days each week, customers learn to associate the seller with quality and concern and so patronize that seller ( repeatedly. 7