What is direct marketing?
In agriculture, there are many customers who buy and process the farmers' products. These buyers are usually wholesalers or retailers such as supermarkets or butchers. However, their purchasing convenience becomes expensive for the farmers and leads to high price pressure. However, there is an alternative: direct marketing. In this, the product is sold directly to the end consumer. This is a desirable option for many farmers, as they can then claim the entire selling price for themselves. However, direct marketing is not very widespread in Switzerland and accounts for only a small share of total agricultural sales.
WHY IS DIRECT MARKETING SO IMPORTANT?
A farm produces goods that it also has to sell. Most farmers usually have neither the time nor the infrastructure to process their products themselves and sell them directly to the end consumer. Therefore, they work with wholesale buyers to resell their products. But this relationship is often expensive for the farmers and leads to high price pressure. Often, the prices farmers receive for their products are too low to even cover production costs. Direct marketing can be a solution to this problem.
WELL ORGANIZED, POORLY COMPENSATED
When farmers sell their products to wholesalers or retailers such as supermarkets, they have the advantage that they do not have to worry about selling their products any further. On the other hand, they are also heavily dependent on this trading relationship. Often they do not have many alternatives to get rid of their products. The price pressure they face is correspondingly high. The prices they receive for their products are often too low to cover their production costs.
PREFER TO SELL YOURSELF
Many farmers would therefore prefer to sell their products directly to the end consumer. This is the so-called direct marketing. When they sell their products directly to the end consumer, they can claim the entire selling price for themselves and are fairly compensated. They could even offer their products at a lower selling price than the retailer. According to the Swiss Farmers' Union website, around 12,000 farms were engaged in direct marketing in 2020. However, the share of direct marketing in total agricultural sales is estimated at only around 5%.
HOW DOES DIRECT MARKETING WORK?
In direct marketing, farmers sell their products, for example, on their own farms, at markets and fairs, etc. Online trade is also becoming increasingly important. Sales on the farmer's own farm can take place, for example, via a self-service stand or a farm store.
Farmers who practice direct marketing can proceed in different ways. For example, they can offer their products as raw goods or process the products themselves and thus offer higher-quality products.
Many farmers also offer their products in the form of subscriptions, where customers regularly receive seasonal products.
ADVANTAGES OF DIRECT MARKETING
For the farmer, direct marketing has many advantages. He has more control over the selling price and the marketing of his products. Through direct contact with customers, he gets direct feedback and can adjust his products more specifically.
Direct marketing also has many advantages for the customer. He can communicate directly with the farmer and learn more about the cultivation and production of the products. Through direct sales, the products can often be offered at a lower price than in the supermarket.
DISADVANTAGES OF DIRECT MARKETING
Despite the many advantages, direct marketing also has disadvantages. For the farmer, direct sales involve more work. He has to take care of the sale and marketing of his products and often needs additional staff for this.
For the customer, too, buying directly marketed products can involve more effort. For example, he has to make his way to the farm to buy the products.
DIRECT MARKETING ABOUT MyFeld.ch
One way for farmers to sell their products directly to end customers is the MyFeld.ch online platform. Here, farmers can sell their products directly to customers. The platform is aimed at farmers and end consumers who are interested in seasonal products and sustainable agriculture.
The platform offers farmers the opportunity to offer their products online in a simple and straightforward manner. The platform takes over the processing of orders and payments and ensures that the goods reach the customer reliably.
The direct marketing of agricultural products via MyFeld.ch has several advantages. On the one hand, farmers can achieve higher prices by selling their products directly to the end customer, as middlemen are eliminated. On the other hand, customers can obtain seasonal products in this way, which are often of better quality and also arrive fresher, as they do not have long transport routes behind them. The transparency and traceability of the products is also better guaranteed by direct marketing.
Overall, there are numerous ways for farmers to market their products directly to the end consumer. The choice of the appropriate marketing form depends on various factors such as product type, target group, size of the farm and regional characteristics. It is important to weigh up the advantages and disadvantages of the various marketing channels and find the right strategy for your own farm.
Direct marketing offers farmers the chance to sell their products without middlemen and at higher prices. At the same time, consumers can benefit from regional and sustainably produced products. Online platforms such as MyFeld.ch offer a practical way to organize the sale of agricultural products directly to the end customer.