What's Your Opinion on This Business Plan? (Short)

[BabyMae09]

I'll keep it concise. My in-laws have booths at two local Farmer's Markets. DP and I started a CSA (community supported agriculture - weekly veggies baskets) last fall as a trail run. We did 4-5 of them for about a month and a half. We traded my in-laws labor for veggies for our baskets. It went very well, and now we're expanding.

We're thinking we can do about 20-25 baskets, as well as selling plant starts at one of my in-laws booths. Our veggies will be grown on their farm (where we live) and we will again trade them labor for their veggies, as well as growing some of our own on the patch of ground they're letting us use (about 100'x50'). Does 20-25 baskets sound like a lot for our 1st full year?

I'm thinking of charging $25 for my baskets ($30 with a dozen eggs included) and $30 for the 'large family' sized basket, $35 with a dozen eggs included.

Do those prices sound right?

Also, we will be selling tomato starts (plants) and were thinking of charging $4 each for those. Does that sound reasonable? They are heirloom and specialty varieties.

One more question: we are selling hop plants as well, and were thinking of charging $15 for the two year old plants and $10 for the plants we will start this year from rhizomes.

Thanks in advance for your feedback!!

[dogmom327]

I think it just depends on where you live and what the going rate is for veggies, eggs, etc. For around here, I think the price may be a bit high but it's hard to say without seeing how big the baskets are.

[BabyMae09]

They are about 20% bigger than most baskets around here. That's why people were so into them last fall - they kept saying things like 'wow! I'm actually getting what I pay for, etc.' Thanks for the feedback

[Seawen]

Most CSA's around here requirement payment in full at the beginning of the season (400/ 1/2share- 600 full) for the summer season (june-sept). So $42/wk for 14 weeks in teh Boston area.

[spunk]

I don't know a whole lot about your industry, but basing your pricing on what others are selling for, as opposed to your costs, is dangerous. You need to really analyze every cost involved in producing your product - I just posted on another thread helping a forum member with pricing for jewelry:

http://www.mothering.com/discussions...php?p=15211634

I think you should take a hard look at every purchase you need to make and all the labor you need to expend to produce X number of baskets and figure out what your cost is and what price is that you are striving to sell at to turn a profit.

Then look at your competitors and tweak your process which will affect your cost so that you can be competitive if need be, or figure out a way to add value to your product that justifies the higher cost.

The other thread is jewelry, but the process is the same for calculating costs for any product in business - you just have to apply that process to your raw materials and labor.

Good luck!