Pricing goods profitably.

By Saintly Ngwenya.

Have you ever experienced getting into a supermarket only to realise that there are no price
tags on all the products on the shelf? Upon consulting a shop attendant, you are informed that
you will know the price at the till point. Most customers will eventually walk away without
bothering to ask for the price of the goods, fearing embarrassment should the price be beyond
their reach.

This is similar to cases faced by many potential buyers of agricultural products from farmers
who invite buyers to their inboxes for prices. A lot farmers, while advertising their products
on social media platforms are not putting prices to their products but instead invite buyers to
come to inbox for prices. A lot of farmers thereby end up losing many potential buyers from
this behaviour.

The price of a commodity is the most important factor in luring consumers to buying the
product. However, most farmers are missing much revenue through poor pricing. The price of
the product is the amount which consumers are willing to pay for a product. When setting a
price, the farmer should set a price that is attractive but also be able to retain an acceptable
profit.

Farmers can use different methods to determine the price of their products. They can
determine prices from competitor’s prices; the actual cost of materials and production; market
fluctuations and basic supply and demand of the product. The price for any product should
cover costs and anticipated profits. When farmers need to offer comparatively lower prices,
they should endeavour to lower their costs of production. Most importantly farmers need
regularly review their prices so that they are reflective of all dynamics of costs, demand,
competition and their profit objectives.

After determining the price for the product, a farmer should have a strategy to ensure that the
price assures sales for the product. In cases where the farmer does not want to display the
price of their product on social media platforms, they can employ several methods without
necessarily losing out on potential buyers. Here are some of the methods they can use:

 Portray the price of the product as comparatively lower than other prices being
offered by competitors. One can compare the price of their product to some
 established markets. For example, a farmer selling tomatoes can market the product as
“At Mbare Musika, tomatoes are going for $1/kg, we are offering them at a better
price, please inbox to place an order.”
 Compare current prices to other older prices of the same product. For example, a
farmer selling onions can market the product like: “The price for onions were $2/kg
last month, we are now selling them at better price, inbox for our current prices to
place an order.”

There are several ways in which farmers can market their goods, however the price of the
product is the most important factor in realising profits. Therefore, farmers need to
understand how to price their goods and be able to stay in business.

To help farmers sell their produce, VaMudhumeni has created the Roots Farmers Market
platform. On this platform, farmers can list their own products, set their own prices and get in
touch directly with buyers. Be sure to check out Roots Farmers Market page on Facebook and
join our VaMudhumeni WhatsApp Groups to learn more about farming and get directly in
touch with buyers and sellers.

#VaMudhumeni #rootsfarmersmarket #helpingfarmersgrow