Fruit Stand Business Plan
Sales to third parties, such as grocery chains or independent markets, may garner lower prices but move a higher volume of product.
Allocating inventory effectively to various distribution channels, then, reaps the highest possible profits.
While it’s true that some roadside sellers are simply profiting from extra yield (and feeding their families on most of the bounty), many actively manage inventory and determine the appropriate mix of pricing/distribution to yield the greatest profitability.
Sales direct to consumers at roadside stands may command premium prices but not sell through all inventory.
“Call us Farm Stand Inc.” Ah, the old farm stand, that seasonal roadside wellspring of sweet, ready-to-be-shucked corn, crisp and juicy apples or jugs of real maple syrup.
But that humble stand has now become big business—in more ways than one. Department of Agriculture calls the trend of selling directly to consumers “an important new opportunity for small and beginning farmers and ranchers to become financially secure.” But it’s not just the farm-stand movement as a whole that’s gaining ground.
Stands on busy highways command higher-than-usual prices compared to their driveway or regular side-of-the-road counterparts.
The highway stands attract travelers, who are generally willing to pay more for convenience than local customers are.
Typically, the roadside stand has low overhead as expenses for sales floor space are minimal, compared to a traditional retail environment.Paying more for space that can generate higher traffic makes sense only if merchants have excess inventory (or, unlimited inventory in the case of digital content), and sellers have the operational capacity to support higher volume of sales (e.g., retail staff or server capacity to complete sales transactions efficiently).A well-located roadside stand typically draws a large enough crowd to sell through its available inventory.Spurred by the “eat local” movement, consumers are flocking to stands connected to family farms (and those farms account for fully 96% of the 2.2 million farms in the U. And they’re also flocking to farmers' markets — in fact, this is National Farmers Market Week. Individual stands are also thinking big, with many morphing into year-round, full-scale enterprises—like supermarkets in touristy packaging.Such “stands,” which can have annual sales in the millions of dollars, offer everything from souvenirs to prepared meals.But they do provide insights into important marketing and operational truths.Fresh fruit, in particular strawberries, blueberries, and cherries where I live, sell quickly because of a limited window for ripeness and goodness.The inherent nature of the roadside stand is that customers drive (or walk or cycle) by on a regular basis.It’s much simpler to stop by a stand while commuting to work or running errands than to plan a trip to the grocery store, supercenter, or warehouse club, or spend your Saturday morning at the farmer’s market.In my corner of the world, the availability of locally-grown food has skyrocketed over the past few years.The numbers of roadside stands, farmers’ markets, and businesses specializing in locally produced vegetables, fruit, eggs, meat, and even packaged foods (prepared in small batches in licensed home kitchens) have increased.