Ag Opportunities Volume 16, Number 4 October 2005 Direct Marketing to Restaurants By Steve Edwards As a graduate of the School of Hard Knocks, majoring in direct marketing, I hope to provide some tips on how to make your experience in this area easier. Direct marketing involves many skills including sales, delivery, pricing, customer satisfaction and product knowledge. Direct marketing is an on-going process, not an end in itself. Any contact you have with your customers, whether by phone or in person, is part of the process. Therefore, you must constantly strive to make every contact with your customers a positive experience for them. First, let’s define marketing... as everything you do from production up to the final point of sale of your product. Everything? Yes, everything. How your product is produced, is part of marketing. For example, all natural, organic or sustainable type meats and produce strike a chord with most restaurants thereby increasing your chances of a sale. How you represent your products, your grooming and demeanor, packaging, your conversation with customers, your reliability, and product quality are all part of marketing. So you can see that marketing is more than just sales, it is establishing a relationship. And like any good relationship, you want it to last. Making Initial Contact with Your Customer Step one of direct marketing to restaurants is to check with your state department of agriculture to see if any license or inspection is required of your products. The next part of the marketing sequence is sales or making a sales call. I realize many people despise the thought of selling something. I did, too. As a youngster, we grew up in a household that held salesmen in utter contempt. They were always calling to sell Dad some swampland in Florida or arriving unannounced during the dinner hour. As a result, we learned to keep salesman at bay. Fortunately, your foray into the sales arena will not be bad. Many restaurateurs and chefs are always on the lookout for quality food that will give them the edge over the competition. This makes your sales call that much easier because they already appreciate fresh, wholesome food. Next, you must have good timing. The lesson here is selecting a right time to make the sales call. Do not call chefs or restaurateurs after 4:00 pm on any day of the week or on weekends, holidays or during the lunch hour. This should be obvious. Instead, plan a sales call by phone midweek at say, 1 to 4 pm. Arrange to bring some free samples of your product for the chef to evaluate. Provide some written information about your product… and make sure it is the truth! For example: *Tender, country raised rabbit *All white meat, juicy and delicious *Naturally raised without hormones or antibiotics I made out 2- by 3 1/2 -inch (business card size) computer printed menu announcements for restaurants and provided them free with my products. They appreciate things like this. More importantly, they help sell product to the restaurant’s guests. And that means more sales for you. Chefs Before direct marketing to restaurants, it helps to know what you are getting in to. We deal with fine dining establishments. I have learned a lot about chefs. They are usually under 30 years old, they live in a high stress, high turn over environment, and they are passionate about creating fine food. To them, this is serious business because their reputation is always on the line. They put their heart and soul into their work and expect their purveyors to do likewise. They are touchy about what they buy. They demand quality. They demand punctuality. And you would better live up to their standards. Remember, you are providing a product for them. If you cannot deal with it, then somebody else will. So, strive to exceed the chef’s expectations. Attend to the detail of your product because sometimes chefs can be abrasive and irritable. Maybe it is because they are short handed for the evening or out of time and patience. Remember, at times like these, do not take offense. Their attitude is not directed at you. That is all part of the chef world, so to speak. Now you are forewarned. I had to learn this on my own. If you have the patience, perseverance and do not let a "sometimes rejection" bother you, perhaps you will be able to direct market to restaurants. It takes time to develop a sales relationship. So, take it slow and easy. Do not be afraid to make improvements in your products and marketing techniques as time and experience dictate. This will put you ahead of the competition. Lastly, read some good marketing books. Author Jay Conrad Levinson’s book : "Guerilla marketing" is tops. It is a must read for anyone wanting to direct marketing anything. If you employ his ideas and tailor them to your own situation, nobody can beat you. Go for it. (Reprinted with permission from American Small Farm magazine) NOTE: On the MAC website, http://agebb.missouri.edu/mac/links/ under the letter "M" for marketing to restaurants you will find the following publications: *Case Studies of Local Food Purchasing by Central Iowa Restaurants and Institutions (Iowa State University) *Perceived Benefits and Obstacles in Marketing to Local Restaurants and Institutional Foodservice Operations (Iowa State University) *Selling to Restaurants (ATTRA) *Working with Retail Buyers (University of Wisconsin) *Report Brief--Selling Local Food to Restaurants and Food Services: Why and How (University of Missouri) *Local Food Connections: From Farms to Restaurants (Iowa State University) *Marketing to Restaurants (North Carolina State University) *Home-Based Business--Retail and Wholesale: How to Do Business Transactions (University of Missouri) *New Markets for Producers--Selling to Retail Stores (CIAS - University of Wisconsin) *Selling to the Retail Market (Wholesale) (University of Maryland) ------------------------------------------------------------------------------- 13th National Small Farm Trade Show & Conference "Profit From Small, Family, Hobby, and Lifestyle Farms" No 3-5, 2005 Boone County Fairgrounds Columbia, MO For more info or to register call 800-633-2535. Registration: Admission: 1 day - $8, 2 day - $15, 3 day - $20 -- Included free with admission: trade show with over 270 exhibitors, one-hour seminars, Farmers Forum and more. Short Courses: $35 each, 3/$65 or all 6/$120. Thursday, Nov 3 Short courses: Biodiesel; Agritourism and Marketing Seminars: Get Small and Get In; Self-Sufficiency; 10 Things to Sink Small Farms; Little Cattle in a Big Market (Mini Herefords); Organic Specialty Crops Farmers Forum: Ethnic Marketing; Blueberry Farm; Bees and Honey; In-row Foraging Chickens and Geese; Sunflowers and Grain Amaranth; Ethanol from Waste Fruit; Small Livestock Watering Systems; Missouri Regional Cuisine’s Project; Farm Safety Friday, Nov 4 Short Courses: Organic Marketing; Organic Livestock Seminars: Farming with Feathers; Heirloom Crops; Miniature Donkeys; Deer; Produce Auctions; Herbs; Alternative Field Crops: Sunflowers and Beans Farmers Forum: Economically Priced Corn Hybrids; Grass and Legume Varieties; Meat Goat Economics; Reclaiming Strip Mined Land; Shade Loving Native Plants; Organic Livestock Production; Farm Diversification; Renewable Energy; Fafkapoon Berry Production Saturday, Nov 5 Short Courses: Get Small and Get In; Soil and Grass Fed Beef Seminars: Berry Possibilities; Farm Beginnings Program; Employment and Land Use; What Hogs Have Taught Me; Marketing Legal Issues; Heirloom Vegetables Farmers Forum: Wood Fired Greenhouse Heating; Portable PVC Poultry Pens; Trickle or Furrow Irrigation; Native Plants: Buffer for Organic Gardens; Missouri Diversified Farm; Native Vegetables for Added Value; Urban Ag and Sustainability; Plant Communities/Cropping Systems ------------------------------------------------------------------------------- What Savvy Farmers Have Learned about Marketing on the World Wide Web *The Internet can be an important part of doing farm and ranch business today. *The Internet can increase sales for producers by increasing visibility. *The higher the level of online service and quality a farm offers, the more investment and expertise is required. *Producers need to be sure their customers are willing to pay for this level of service. *Freshness and organic certification are important competitive advantages. *Delivery areas may need to be limited to ensure freshness and avoid adding costs. *Delivery and sales at farmers’ markets or central pickup points can cut costs. *Experience in order fulfillment through farm mail/catalog order is an advantage ------------------------------------------------------------------------------- On-Farm Energy Conservation Important Again Nearly 30 years ago, the Center for Rural Affairs launched its Small Farm Energy Project, the first of its kind to ask farmers to develop and test ideas for saving money on energy. Some of the results of that project are useful today, as energy costs soar. Farmers tested a variety of technologies and conservation practices while a second group recorded their energy use but made no changes. The testing group spent 17 percent less than their neighbors on fertilizer, fuel, and electrical energy for farm and home. Major sources of energy savings were: *Recycling resources: heat capture, manure composting, construction with used materials. *Collecting solar energy: solar water and air heating. *Insulating and weatherizing: adding insulation to living and work buildings. *Conservation: reduced vehicle use, fertilizer calibration, limited lighting, better fuel storage. *Renewable fuels: wood heat, methane and ethanol production, wind energy. Farms of all sizes have become increasingly dependent upon energy use and vulnerable to energy price increases. This project showed that it is possible to both reduce energy expenses and to maintain farm productivity. Find out more details in the full article: www.cfra.org/newsletter/current.htm. Contact: Wyatt Fraas, 402.254.6893 or wyattf@cfra.org. ------------------------------------------------------------------------------- *** In Print/On-Line *** *Guerilla Marketing* and *Guerilla Marketing Handbook* by Jay Conrad Levinson. Available from most book stores. *New Concepts of Sheep Growth* and *New Concepts of Cattle Growth* are available from www.sheep.cornell.edu/sheep/links/ifup.html *Getting the Bugs to Work for You: Biological Control in Organic Agriculture* symposium proceedings are online at http://csanr.wsu.edu/InfoSources/BugsWorkProceedings.htm The New Farm e-magazine is running a series of articles on tools and equipment for beginning farmers. They can be found at Your First Tractor Part 1, www.newfarm.org/columns/gd_tractor/2005/0421/index.shtml and Your First Tractor Part 2, www.newfarm.org/columns/gd_tractor/2005/0602/index.shtml. Next is buying at auctions. ------------------------------------------------------------------------------- *** IN THE NEWS *** In response to the question, "How do you to find good land at an affordable price?" we came up with several ideas. Land access is the biggest issue for beginning farmers. Land matching sources, such as our Land Link program, put a retiring and beginning farmer together. If the landowner is properly motivated, a land contract can be developed that benefits both the buyer and seller. Conventional sources of land, such as real estate listings, are another option. Check into the USDA Farm Service Agency for beginning farmer loans. If you qualify, the rates are reasonable. Your state might also have an ‘aggie bond’ program that gives tax benefits to landowners or homeowners selling to beginners as an incentive to lower the price or take a risk on a beginner. Bankers and realtors should know of such a program in your area. Another source of land might be defaulted farms. A while back, FSA had quite a few repossessed ‘inventory’ farms that were hard for them to sell. See the complete article for more strategies: www.cfra.org/newsletter/2005_09.htm. Contact Wyatt Fraas, 402.254.6893, wyattf@cfra.org (Center for Rural Affairs Newsletter, Sept 2005) The Midwest Organic and Sustainable Education Service and the USDA's Risk Management Agency have partnered to offer full scholarships for the RMA Midwest Regional Conference to be held Nov 1-2, 2005, in Des Moines, Iowa. The conference will highlight successful strategies for small and limited resource farmers and ranchers, include tours to thriving farms, and feature workshops on regional marketing issues, legal liabilities, family generational issues, managing production costs, community cooperatives, specialty crops, and financial considerations for small farmers and ranchers. Full scholarships are available for farmers, ranchers, representatives from community-based organizations, agribusiness leaders, and USDA personnel. For more info, call 715-772-3153, info@mosesorganic.org, or PO Box 339, Spring Valley, WI 54767, www.mosesorganic.org/attachments/success0905.htm Weblogs, or "blogs," are simple text-based Web journals that allow anybody to post articles, news, views, and photos. These user-friendly platforms are one of the fastest growing segments of the Web in terms of public participation. Blogs about farms and CSAs can be a good way for farmers and ranchers to keep in touch with their customer base and wider network. Stories and photos of ranches and farm life, livestock, and cropping systems are very appealing. In fact, farm photos are one of the all-time best outreach and networking tools. Digital photos on blogs make it easy to show a new product, conditions in a field, or how to set up a particular piece of equipment. (ATTRA News, Sept/Oct 2005) The American Livestock Breeds Conservancy reports that the number of breeds on their Conservation Priority List is growing. They still list 26 livestock breeds as and 37 poultry breeds as critical. Another 20 breeds of livestock and 12 breeds of poultry are listed as threatened. Of these 95 breeds, 41 are of American origin. Action is needed to reintegrate these breeds into production niches that take advantage of the breeds’ individual characteristics. If you are interested go to www.albc-usa.org/ or call 919-542-5704. If you don’t have time to make garlic braids, let your customers do it themselves! Leave the tops intact on some of your garlic and provide instructions on how to make garlic braids. Rather than selling one bulb of garlic, you may sell 13, enough for a nice looking braid. For clear how to instructions with photos on garlic braiding go to www.bloomingfieldsfarm.com/garbrdhow.html. Harvest greens late in the day for longest shelf life is advice based on trials conducted in England and Kenya with "baby salad" leaves (two to four inches long when harvested) of looseleaf lettuce, read chard, and arugula. The increase in post harvest shelf life (when stored at various temperatures between 38 and 72 degrees and judged visually by singes of physiological breakdown) following harvest in the evening rather than in the morning was two to six days for arugula and one to two days for lettuce and red chard. Leaves harvested in the evening showed better turgor. (HortIdeas, Sept 2005, 22(9)) To alleviate mineral deficiencies in sheep and goats, producers in other countries sometimes administer copper oxide wire particles to their animals. While such deficiencies may not exist here, a growing resistance of parasites to chemical dewormers has piqued interest in alternatives in conventional treatments for nematode infections. Recently, researchers wondered whether copper supplements might also improve animals’ immune systems and create less desirable environments for parasites. So they tested the theory by administering varying amounts of copper wire as a bolus, in a soft mass of food, to control infections of barber pole worms in hair sheep. No signs of copper toxicity appeared at does up to 6 grams. But the researchers found that as little as one-half gram of wire particles for at least 4 weeks resulted in a 60 to 90 percent reduction in nematodes. Administering such small doses may allow more frequent treatments—especially during times of heightened need. For more info, contact Joan Burke, USDA-ARS Dale Bumpers Small Farms Research Center, Boonville, AR, 479-675-3834, jmburke@spa.ars.usda.gov. -------------------------------------------------------------------------------- *** ON THE CALENDAR *** Oct 14 - Cultural Competency Working with Rural Latinos, Monett, MO. Call 573-882-3776. Oct 14-16 - Artisan Cheese Making Class, Warren, VT. Call 802-496-3998, aginnov@madriver.com Oct 14-16 - Biodynamic Farming National Conference, Red Boiling Springs, TN. Call 888-516-7797. Oct 15 - Quail Improvement Workshop, Smithville, MO. Call 816-792-8662. Oct 22 - Farm Beginnings™ Course, West Plains, MO. Call 417-256-2391. Oct 21-23 - Women in Ag Conference, Burlington, VT. Call 802-656-0554 or wagn@umv.edu Oct 22 - Business Management, Basics of Farm Business Management Workshop, call 913-488-1270 or growers@ksu.edu Oct 25 - Pasture Walk, Webster County, MO. Call 417-895-2044. Oct 27 - Riparian Buffer Field: Managing Riparian Forests and Riparian Buffers, New Franklin, MO. Call 573-882-3234, rhoadsj@missouri.edu Oct 29 - 3rd Annual Chestnut Roast, New Franklin, MO. Call 573-882-3234, www.centerforagroforestry.org Oct 29-30 - Missouri State Beekeepers Association Fall Meeting, Lake of the Ozarks, MO. Call 636-394-5395. Nov 1-3 - Cheese Makers Artisan Cheese Workshop, Lincoln, NE. Call 402-472-9751. Nov 3 - Beef Producers Seminar, Maryville, MO. Call 816-383-5152. Nov 3-5 - National Small Farm Trade Show & Conference, Columbia, MO. Call 800-633-2535. Nov 7-8 - Missouri Forage and Grasslands Conference, Osage Beach, MO. Call 573-799-0886. Nov 12 - Missouri Boer Goat Bonanza, Carthage, MO. Call 417-753-4886, missouriboers@wattswoodfarms.com Nov 10 - Latino Human Risk Management Workshop, Sedalia, MO. Call 573-882-3776. Nov 29-30 - Heartland Green Industries Expo, Overland Park, KS. Call Mindy 866-682-6663 or 573-882-8320. Dec 3 - Rural Life Day, Jefferson City, MO. 2005 Missouri Livestock Symposium, Kirksville, MO. Call 660-665-9866, missourilivestock.com Jan 13-14 - Missouri Aquaculture Assn Annual Meeting and Banquet, Jefferson City, MO. Call 573-526-6666. Jan 13-14 - North American Farmers’ Direct Marketing Conference and Trade Show, Austin, TX. Call 413-529-0386 or www.nafdma.com Jan 17-19 - Illinois Specialty Crops Conference, Springfield, IL. Call 309-557-2107 or handley@ilfb.org Jan 21 - Missouri Christmas Tree Association Meeting, Jefferson City. Call 573-243-5501. Feb 4-5 - Missouri Young Farmers/Young Farm Wives Annual State Convention, Lake Ozark, MO. Call 573/751-8467. Feb 17-19 - Specialty Mushroom Grower Workshop, Columbia, MO. Call 573-882-3234, www.centerforagroforestry.org Feb 25-26 - Missouri Equine Council 16th Annual Equine Education Celebration, Columbia, MO. Call 800/313-3327. Feb 25-27 - Western Farm Show, Kansas City, MO July 30 - Missouri Young Farmers/Young Farm Wives Annual Summer Tour, Chillicothe, MO. Call 573/751-8467. Aug 10-20 - 2006 Missouri State Fair, Sedalia, MO Green Hills Farm Project 2005 Farm Walk Schedule Green Hills Farm Project welcomes all families to our open farm walks. Always bring your children! Please call ahead to let the host family know how many to expect. The host family provides the main meat coarse and drinks. It would be appreciated if all members and guest bring a side dish and service set for each participant. Bring Lawn Chairs. Some Farm Walk host will have a special guest speaker. Many past walks have had a variety of guest speakers from our Univ Extension, MO Dept of Ag, special interest groups, and specialist from our own communities. Our farm walks are very social, but also a time of sharing information and learning. Come on out and join us for a great time on our farms! For more information about Green Hills Farm Project contact Jordan Bentley jbentley@cvalley.net; Allen Powell at powell@mcmsys.com Oct 20 - 4pm. Matt & Tina Reichert, Brunswick, MO, 660-548-3283. "MIG Cow/Calf operation and Boer African Meat Goat brush and weed control project that is being expanded. See how the "$500" ponds have worked out which were built last summer. We are expanding our Bed and Breakfast to include some youth camps this summer as well as family camps. Nov 18 - Tentative Dinner in Brookfield, MO Grazing Schools across the State Southwest Region Oct 25-27 - Bois D'Arc. Call Mark Green 417-831-5246 x 3, mark.green@mo.usda.gov Oct 27-29 - Marshfield. Call Mark Emerson 417-468-4176 x 3, mark.emerson@mo.usda.gov Southwest Region Oct 13-14 - Brumley. Call Lisa Tellman, 573-392-5667 x 3 --------------------------------------------------------------------------------