How to work with producers who want to sell locally grown products in a grocery store
Advice from Mark Steffen, Manager of Dave’s Supermarket, Fairbury IL: How to work with producers who want to sell locally grown products in a grocery store steffen@gridcom.net
The supermarket must be able to utilize a PLU number to track the products. Most stores today have that capability. There is less room for error when this system is used and it eliminates cashiers guessing what the items are and their prices.
The items should be displayed together to get a synergy effect, both refrigerated and non-refrigerated. It is also important to have good signage.
The grocer must agree with the farmers on what percentage will be taken for gross profit and could be reminded that they have no labor costs or shrink costs with product. In other words, most could work on a lower mark-up.
It is important to educate the consumer. We have a quarterly newsletter called 'Keeping In Touch' and have run several articles about the locally grown products. Information about the product is interesting, but also most local customers will recognize the farmers' names, which give the products credibility. We also run ads in our flyer. The farmers sampled products a couple of times in the store.
There should be an understanding right 'up front' with the grocer and the farmers that flexibility is a must with allocated space.
The store should educate their Team. They are the best salespeople for word of mouth advertising.
There should be a 'go to' person that can communicate to all the farmers. “Marty and Kris Travis are our people.” (Spence Farm). We have each other's e-mail addresses and phone numbers and have had good communication. That is important!