It is also the realization of the market value of the products that greatly defines a farmer's success. This can be a real challenge, especially given the current state of affairs in agricultural markets, according to Benedict T Palen Jr. Nevertheless, being aware of the market value framework can increase a farmer’s profit many times, help analyze the business processes, and guarantee sustainability. There are different methods that will be discussed in this article so that you too can be able to find the market value of being a farmer.
1. Research Your
Local Market
The first measure in
estimating the value of the services you intend to offer in the market is to
research the local market. Among the requirements that you have to analyze will
be the demands for similar products as well as their prices with reference to
the local market. It will, in this way, assist you in making appropriate
decisions on the prices that you adopt for your products. Sources of market
research include agricultural cooperatives, farmers’ markets, and government
agencies such as the Agricultural Marketing Service- US Department of
Agriculture.
2. Check your cost
and expenditure
Assessing the
expenses of your products when being manufactured is crucial in setting how
much the products should go for in the market. These cost factors include
labour, machinery, power, seed, fertilizers and any other input that is
required in the production process. When budgeting, you are able to put the
lowest price figure that you cannot afford to go below if you intend to make
some profits.
3. Understand Supply
and Demand
The final parameter
that affects the market value of your products includes the availability of
your various products in the market. This is because in the case where the
demand for a certain product is high and the supply-constrained, the value of
the product in the market is likely to be higher. In understanding these
factors, you can better decide on placing your products to sell at the right price
level, according to Benedict T Palen Jr.
4. Competitor
Pricing
By viewing the
prices at which your competitors are selling their products, some valuable
insights can be obtained on the market value of your products. While you should
not set your prices based on your competitors, using competitor pricing can be
a good benchmark for the market price of the products. Pay attention to their
prices as well as the quality of the products they offer for sale; this will
help you make a decision about who you compete squarely with or identify a
niche that you could sell to your customers from which you can differentiate
yourself from the competition.
Conclusion