Data drives farmers market profits

By Blake Jackson

Cornell researchers, in collaboration with New York farmers, delved into the secrets of profitable farmers markets. By analyzing over 26,000 customer transactions, they unveiled key factors that boost sales, offering valuable insights for market success. 

Their study, published in the Journal of the Agricultural and Applied Economics Association, marks the first peer-reviewed analysis of customer-level data at farmers markets. Here's what they discovered: 

• Sunday Strolls and Holiday Splurges: Customers loosen their wallets on Sundays, spending more per purchase compared to Saturdays. Additionally, holiday months like March, April, November, and December witness a surge in spending. 
• Early Bird Gets the Worm (and the Sales): Early risers rejoice! Sales peak at the market's opening and steadily decline throughout the day. This highlights the importance of arriving early to capture the initial rush. 
• Double Delight: More Pounds, More Cash: Ground beef lovers tend to buy in bulk, averaging purchases of two pounds or more. This suggests offering deals or bundles for larger quantities to entice customers. 
• Plastic Power: Paying with debit or credit cards encourages customers to spend more, making it wise for farmers to embrace cashless options. 
• Crowds Can Dilute: When transactions increase, individual spending dips. Farmers can strategically position themselves and adapt their product offerings to manage foot traffic effectively. 

"Farmer's markets haven't traditionally had access to scanner data, a tool supermarket use to optimize sales," explains Todd Schmit, co-author and professor of applied economics and policy. "This research levels the playing field, empowering farmers with data-driven insights to market their products more effectively." 

Farmers face competition from grocery stores offering local produce, and studies show they sometimes struggle with sales per hour compared to other farm outlets. These findings, however, present actionable steps to address such challenges. 

By strategically attending Sunday markets, adjusting pricing and volumes for holidays, and bundling popular items like ground beef, farmers can harness the power of data to create a thriving market presence. So, lace up your boots, farmers, and embrace the power of data-driven insights to turn your market days into a bonanza! 

Photo Credit: cornell-university