________________________________

In 1992 my wife and I 





________________________________

In 1992 my wife and I revised our farm business plan away from bulk wholesale accounts.  We wholesale case lots to local businesses and retail directly to customers.  Without looking at my numbers I'll estimate that 80% of our hive products are direct marketed (candles, liquid, comb and creamed honey).  Our hive product business has grown past what we can produce, so we purchase hive products for other local beek's.  Several of whom post here occasionally.  We also produce beef, pork, poultry (eggs) fruits and veggie's that are 100% direct marketed.

We are heavily into local farmers markets.  All these markets have local product requirements.  We sell in several states as well as maintain apiaries in these state.  To maintain compliance,  we segregate the products by the state of origin.  Its a pain in the bottom, but it keeps me compliant and when I'm looking directly at the customer, I am honest with them.  I don't lie worth a darn.

Pricing of product.  I usually get into trouble with other local beek's on this one.  Investment (Expenses$) X Return on Investment (profit margin %) / production = pricing.  A simple formula, but does require good record keeping.  If you are efficient, your pricing will be lower than the other local beek's.  My purchased hive product bid is figured on my own production cost.  If the beek I'm buying from has greater efficiency than I, we are both profitable.  This method allows me to maintain a relatively stable pricing structure.  Constantly bouncing your pricing up and down will turn customers away.  Repeat business is what you will survive on in the direct market model.

The best free advice I can give is to contact your local Ag Extension office and work with them in building a business plan.  Other wise enjoy your bees and find 250 friends to give it to.

keith

*******************************************************
* Search the BEE-L archives at:                       *
* http://listserv.albany.edu:8080/cgi-bin/wa?S1=bee-l *
*******************************************************