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Old August 22, 2018   #73
PureHarvest
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Join Date: Mar 2014
Location: Mid-Atlantic right on the line of Zone 7a and 7b
Posts: 1,369
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That's for the really small stuff.
The larger 1.75"-2" bulbs i'm getting about .66 for.
In both cases, I'm getting $6/lb. About 12 bulbs/lb in the small, 9 in the 1.75-2".
This allows them to sell it for .99 and keep it under the $1 psychological price point, which they like.
Which brings up a good point for my market. Everything you read is all about sizing up bulbs and getting the largest bulb. Up until this summer, that was my push too.
But then I realized I am not growing these for me. If all my bulbs size up every year, and everything is huge, I have to charge more for each bulb, which means they do too. I'm pretty sure from discussions with multiple buyers, they would not be comfortable carrying a garlic bulb that they need to ask $1.50 or higher each for.
So, really, I'm hoping to get bulbs that all average 2" diameter so they have a nice size at the "right" price-point.
And selling by the pound makes no sense from a retailer standpoint in my experience.
Each price is the least common denominator for both the wholesale buyer and the retailer. No customer is buying pounds, so why price it that way and post a perceived expensive price.
Most customers buy 1-3 bulbs. So each pricing makes sense.
If I sold by the pound, a good retailer will still want to know how many bulbs are in a pound so they can figure out the each cost.
So when I discuss pricing, I tell them what each bulb will cost, and tie that in at the end to tell them how many bulbs go into a pound so they can order a bulk box.
They can easily calculate a markup on an each cost versus you telling them x per pound.
Kinda like when I ran the garden center. An 1801 flat of plants has 18 pots in it. Yes they sell them to me by the flat price, but our customers bought them by the each 99.9% of the time. So I always broke the flat price down to eaches. The thoughtful suppliers listed the each price next to the flat price on their lists for your convenience.
Once I knew my each, I could then set my retail (using gross margin desired, NOT Markup) knowing this is how customers bought this product.
What sounds better, .99 each or 8.99 per pound? It's the same price per pound either way, but 99.9% of customers are not buying a pound or more.
Now, I hear some of you thinking, "but the sellers online charge by the pound, and they are getting $13-25 per pound! You're leaving money on the table!"
Well that is good work if you can get it, but as of right now that is not my outlet. Maybe someday. My resources tell me the online places MUST charge high prices because they have a lot of overhead to do that type of marketing: website costs, online cart, credit card costs, invoicing, packaging material, packing/order fulfillment, shipping, and customer service. So when you boil it all down, much more cost is coming out of those higher prices. Most of the orders are 1 pound or less too. Much lower percentage of people like me who are growing are buying a bulk quantity, which is why they seriously discount the price per pound when you get beyond 25-50lbs.
The farm I bought from 2 years ago (bought 150 lbs from them), personally called me last August to see if I needed anything and was willing to do free shipping and knock another $1 off per pound from the normal price break. I declined, because I learned that they sold stuff from other farms as well as their own. I wanted a 100% grown on the same farm from a small family producer.
Once you get to the point where you are not buying any seed bulbs, there is not much production cost to get to harvest. From there, if you sell locally, even at wholesale, you could achieve a gross profit margin at 75% or better, and that is excellent in my book.

Last edited by PureHarvest; August 22, 2018 at 10:03 AM.
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