ADVANCEDSERIESWORKSHOP: THEGREENEDGEMODEL History:Timeline - PowerPoint PPT Presentation

ADVANCED
SERIES
WORKSHOP:

 THE
GREEN
EDGE
MODEL


History:
Timeline


Green
Edge
MarkeCng
Story
 2004 
 
 








 2007








































 2009‐2010 
















 2013
Increased
producCon

 When
the
business
was
 Then
we
aggressively
sought
 Moved
to
a
greater
retail
focus
 acquired,
we
marketed
to:
 out
wholesale

(Some
worked
 (DiversificaCon
is
key)
 out,
many
did
not)
 • Athens
Farmers
Market
 • Added:
 • CSA
first
 • Adjusted
CSA
to
lower
 enrollment
 • local
restaurants
 • Columbus
chefs
 • Then
Athens
Farmers
Market
 • Resulted
in
an
increase
in
 • broker
who
resold
our
 • wholesale
local
sales
 • Le\overs
go
to
wholesale
 market
sales
 products
(Mushroom
 meeCngs
with
verbal
 (important
for
reducing
 Harvest)
 agreements
‐January

 waste)
 • New
field
and
raised
beds
 were
created
 • ATempted
to
work
with
 • Whole
Foods
 local
insCtuCons
 • Acquired
former
broker
 company
(Mushroom
 Harvest)
 Direct
 2004
 2012
 Direct/ 2007
 2009
 (no
CSA)
 Broker
 CSA
 BROKER
 4%
 12%
 4%
 6%
 BROKER
 Wholesale
 13%
 19%
 Broker
 Retail
 CSA
 RETAIL
 33%
 15%
 46%
 24%
 RETAIL
 Wholesa CSA
 27%
 le
 Retail
 60%
 69%
 44%
 WHOLESALE
 10%
 WHOLESALE

 14%


Trucking
and
Delivery
 14
\.
box
truck
delivers
once
per
week
to
Columbus
and
pickup
truck
with
an
8
\.
 box
deliver
food
to
wholesale,
market
and
CSA
customers
 Annual
Trucking
Costs
for
Columbus
Deliveries
(2012)
 Fuel
 $6,164.00
 Repair
 $3,347.00
 Total

 $9,511.00
 In
order
to
offset
these
costs,
the
 truck
must
be
full
to
the
Columbus
 delivery
run.
This
includes
CSA
 shares,
produce
grown
on
the
 farm,
and
products
bought
and
sold
 from
others
farms
and
businesses.



Valuing
Vegetables

 Crops
Grown
for
CSA
and
 Money
Makers
 Seasonal
Fillers
 CSA:
value
at
retail
 Market
Variety
 price
comparable
 • Appealing
to
all
customers
 • Loss
leaders
 • Crops
to
take
to
market
while
 we
transiCon
the
greenhouses
 • Good
profit
margin
 • Okay
to
grow
because
it
is
 to
market
and
 to
summer
crops
and
wait
for
 already
sold
through
the
CSA
 • LiTle
compeCCon
 field
planCngs
to
mature
 stores
 • Plant
in
limited
amounts
 • Major
demand
 • asparagus
 • InvesCgate
partnering

































 • sunfolwer
microgreens
 
 • rhubarb
 • beans
 • micromix
microgreens
 • peas
 • broccoli
 Market:
must
be
in
 • mushrooms
 • broccoli
(spring)
 • cucumbers
 • tomatoes
 range
of
others
 • eggplant
 • beets
 • collards
 • carrots
 selling
the
same
 • mustard
 • ginger
 type
of
produce
 • Asian
greens
 • arugula
 • dill
 • swiss
chard
 (organic
is
a
factor)
 • parsley
 • kale
 
 • basil
 • spinach
 • peppers
 • cilantro
 Wholesale:
bound
 • per.
herbs
 • potatoes
 by
distribuCon

 • sweet
potatoes
 Broker:
Set
price
 • radishes
 • green
onion
 and
keep
it

 • radishes
 

 • green
onions
 • turnips
 
 • rutabaga
 • summer
squash


Valuing
Vegetables:
 

 Greenhouse
Income '!()*+,"( 1"2#+3()*+,"(( 7($#3"$( 7($#3"$( `+"3T(-/RX"T0( B(."*(X"T(_(*"2#+3(%&3^ B(."*(X"T(_('!(%&3^ !"#$%& -."*(/0 -."*(/0 4#*5"2(.#,5#6+&6 +&(*"2#+3 +&('! 8+&+494 8#:+494 8+&+494 8#:+494 8+&+494 8#:+494 ;*9693# <+&2"*(=> ?@ A B(CDEEA@D@E B(FEDEEAFFDEE BG(H%*(I(%J FEE E B(((((( ?@EDEE B(((((((( KG@DEE A A !.+&#,L <+&2"*(=> GEE IEE B(((((((((( @DEE B(((((((((((((( MDEE BI(H%*(K(%J N@ @ B((( FOGEEDEE B((((( FOKEEDEE B(( FOEEEDEE B(( FO@EEDEE P#3" <+&2"*(=> CEE @EE B(((((((((( GDEE B(IDIEACDEE BGD@E(H%*(FEAFG%J KE GE B((( FOIGEDEE B((((( GOEEEDEE B((((( KEEDEE B(( FOEEEDEE BI(H%*(CD@%J(R( Q"229," <+&2"*(=> GEE G@E B(((((((((( MD@E B(ND?FAFEDM? BKD@E(H%*(FC%J KE GE B((( FONCGDEE B((((( GOMM@D@E B(( FOIEEDEE B(( FOMG@DEE !D(SL#*T <+&2"*(=> @EE ?EE B(((((((((( GDEE B(IDIEACDEE BGD@E(H%*(FEAFG%J ?E IE B((( FOM@EDEE B((((( GOKEEDEE B(( FOEEEDEE B(( FOCEEDEE S#**%2$ <+&2"*(=> IEE A UR; B(@DIIAMDEE BI(H%*(KAN(%J FEE E B((( FO@NNDEE B((((( FOKEEDEE A A VWV;Q(H%*(M(X"T$ B((( KOCMFDEE B((( FFOKNED@E B(( COFEEDEE B(( @O@G@DEE 1#&6" 1#&6" !.+&#,L N@7(*"2#+3 B(( FOFCEDEE B((( FO?FEDEE @7('! B(((((((( @EDEE B(((((((( ?@DEE VWV;Q B(( FOFNEDEE B((( FO?K@DEE 1"2#+3R'L%3"$#3"(4+: (8+&+494 (8#:+494 1#&6" 1#&6" ;*9693# B(((((( ?@EDEE B(((((((( KG@DEE 1YV;ZQ()1ZSY P#3" KE7(*"2#+3 B(( FOE@MDEE B((( FOMEEDEE !.+&#,L B((( FOFNEDEE B((((( FO?K@DEE GE7('! B(((((( FMEDEE B(((((( GEEDEE P#3" B((( FOGFMDEE B((((( FOKEEDEE VWV;Q B(( FOGFMDEE B((( FOKEEDEE Q"229," B((( FOKFIDME B((((( GOC@?DCK !D(SL#*T B((( FOC@@DEE B((((( GOIKEDEE 1#&6" 1#&6" S#**%2$ B((( FO@NNDEE B((((( FOKEEDEE 1YV;ZQ()1ZSY Q"229," KE7(*"2#+3 B(( FO@@IDME B((( GOFIGDCK GE7('! B(((((( GMEDEE B(((((( IG@DEE V%2#3(H%*(M(X"T$[ B((( KOEGIDME B((( FFOEC?DCK VWV;Q B(( FOKFIDME B((( GOC@?DCK VL"$"(2%2#3$(6+]"(9$(#&(#..*%:+4#2+%&(H%*(+&,%4"(."*(6*""&L%9$"(+&(2L"( <+&2"*(6*%<+&6($"#$%&O(X#$"T(%&(L%<(49,L(<"(2^.+,#33^($"33(+&(<L%3"$#3"( 1#&6" 1#&6" #&T(*"2#+3(4#*5"2$D( !D(SL#*T ?E7(*"2#+3 B(( FOF@@DEE B((( FONMEDEE IE7('! B(((((( IEEDEE B(((((( CGEDEE VWV;Q B(( FOC@@DEE B((( GOIKEDEE \1#&6"(*"H3",2$(2L"(]#*+#&,"(+&(^+"3T(."*(X"T

Pricing 

 An
example
of
how
sales
 have
changed
over
Cme,
 for
two
local
restaurants
to
 which
we
sell
produce


Business
and
MarkeCng
 Targets
‐

GEOG
follows
this
process
to
 Expense
Summary
January
‐
December
2012
 establish
annual
sales
targets:




 
 FerClizers
 • 
 Analyze
last
year’s
costs
in
reference
to
the
budget
 1%
 Interns
 • 
Review
,
analyze,
and
calculate
payroll
costs
 Packaging
 2%
 Other
 2%
 including
expected
raises,
benefits,
and
taxes
 8%
 Supplies
 • 
Predict
this
year’s
costs
including
inflaCon
+
known
 2%
 UCliCes
 large
item
purchases
 

 2%
 Seed
 • 
Review
last
year’s
cost
increases
to
evaluate
our
 3%
 prices;
are
increases
needed? 

 Vehicles
 • 
The
annual
budget
is
prepared
knowing
there
are
 3%
 

 built‐in
excesses Insurance
 
 A\er
this:

 5%
 • Review
sales
and
categories
from
previous
year
 Payroll
 58%
 • What
can
we
be
expanded
or
shrunk
to
give
us
 CSA
Combo
Items
 14%
 the
best
advantages?
 • Adjust
numbers
if
needed
 
 Sample
 expenses
 over
Cme:


Understanding
the
Market 
 Wholesale
 Broker
(distribuCon)
 Restaurants
and
Groceries
 pros
 cons
 pros
 cons
 very
 can
move
 can
take
 unstable


 on‐farm
 can
be
 large
 lower
 few
logisCcs
 lower
price
 few
logisCcs
 unstable
 lower
price
 pickup
 'all
eggs
in
 inconsistent
 quanCty
 quality

 one
basket'


Understanding
the
Market 
 Retail
 CSA
 Farmers
Market
 pros
 cons
 pros
 cons
 week
to
 Cme‐ high‐quality
 success
 must
 stable
 enables
cash
 requires
 week
 more
 intensive
 required
 depends
on
 consistently
 flexible
 pre‐paid
 higher
price
 flexible
 higher
price
 pricing
 market
 flow
 variety
 compeCCon
 variability
is
 logisCcs
 consistently
 weather
 show
up
 fine




 MarkeCng
Models