By Blake Jackson
Farmers markets seeking to enhance revenue can achieve significant results without altering their product offerings, pricing, or staffing. The key lies in embracing digital payment methods, such as credit cards.
A Cornell University study revealed a compelling advantage for vendors accepting digital payments. Customers utilizing credit cards spent an average of $2.28 more compared to those paying with cash. This translates to a direct boost in sales without additional investment in products or personnel.
Popular point-of-sale (POS) software like Square offers a user-friendly solution for accepting digital payments. Functioning similarly to a cash register, Square facilitates both credit card transactions and cash purchases. The market also offers alternative payment processors that solely handle transactions. Fees and hardware requirements vary based on the chosen system.
While an internet connection is ideal for real-time transaction processing, most systems can operate offline in a limited capacity. This ensures continued functionality even in areas with spotty internet access. However, offline operation comes with a caveat – declined cards won't be identified until reconnected.
Effectively communicating the availability of digital payments is crucial for maximizing their impact. A Cornell study demonstrated the importance of clear signage. One participating farm, despite accepting credit cards, experienced a significantly lower credit card usage rate due to a lack of signage. Once signage was implemented, their customer traffic surged by 33%, and overall sales increased by 10%. The sign simply stated: "We accept credit cards, cash, Apple Pay, and checks."
Food benefit programs like SNAP present a unique opportunity to expand the customer base. However, program availability at farmers markets varies by state. Some markets utilize token programs, where SNAP users pre-purchase tokens for individual vendors. Additionally, some markets offer matching programs that effectively double a customer's buying power through sponsorships. These programs, while beneficial, are not universally available in every state. In Pennsylvania, for instance, only an estimated 50 out of 330 markets offer such programs and managing them requires dedicated personnel.
Farmers seeking independent solutions for accepting food benefits can utilize software like Novo Dia. This software functions similarly to Square, enabling electronic processing of food benefits. Notably, in New York, a wireless EBT grant program reimburses farmers for any software fees incurred.
Regardless of the chosen method, promoting the acceptance of food benefits is essential. Customers often hesitate to inquire about program compatibility, fearing rejection. By proactively displaying signage that states "Yes, we accept SNAP," farmers can alleviate customer concerns and maximize sales opportunities.
Embracing digital payments and food benefit programs presents a readily available avenue for farmers markets to enhance revenue without altering their core business model. By implementing these strategies and effectively communicating their availability, farmers markets can attract a wider customer base and experience significant sales growth.
Photo Credit: cornell-university
Categories: New York, Business