Choosing Profitable Products for Local Markets

Capítulo 2

Estimated reading time: 7 minutes

+ Exercise

Choosing what to sell is not about listing everything you can produce. It is about selecting a small mix that fits real local demand, your weekly capacity, and your tolerance for waste and uncertainty. A tight product mix helps you buy packaging in fewer formats, standardize handling, and learn faster from customers.

1) Selection criteria: pick products that fit your reality

Use the criteria below to filter ideas before you invest time and money. You are looking for products that are (a) sellable in your market, (b) manageable with your labor and equipment, and (c) resilient when weather, timing, or attendance changes.

Shelf life (how long you can sell it)

Longer shelf life reduces the risk of unsold inventory and gives you more flexibility if market turnout is low.

  • High shelf-life examples: cured garlic, winter squash, potatoes, onions, dried herbs.
  • Low shelf-life examples: berries, leafy greens, cut herbs, ripe tomatoes.

Practical check: Write the realistic selling window in days (not the ideal). Include time in harvest bins, transport, and display.

Ease of handling (harvest, pack, transport, display)

Handling complexity quietly drives costs: extra trips to the cooler, delicate packing, frequent misting, or high damage rates. Products that bruise easily or require strict temperature control may be profitable only if you already have the workflow.

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  • Questions to ask: Does it need refrigeration? Does it bruise? Can it be stacked? Can one person harvest and pack it quickly?
  • Hidden handling costs: extra containers, ice packs, frequent sorting, higher shrink from damage.

Production reliability (can you deliver consistently?)

Local buyers reward consistency. If you can only supply a product sporadically, it may still work as a seasonal add-on, but it is risky as a core item.

  • Reliability signals: predictable yields, multiple plantings/successions, tolerance to heat/cold swings, fewer pest bottlenecks.
  • Risk flags: narrow harvest window, high pest pressure, requires perfect timing, depends on a single planting.

Practical check: Estimate how many weeks you can supply it and how variable the weekly volume is likely to be.

Differentiation (why choose yours?)

Differentiation is the reason a customer picks your product over the next stall’s option. It can come from variety choice, freshness, story, convenience, or quality consistency. You do not need to be “unique”; you need to be distinct in a way customers value.

  • Ways to differentiate: unusual varieties (striped beets, specialty chilies), superior freshness (harvested same morning), consistent sizing, mixed-color bunches, “ready-to-use” bundles (soup mix, salsa mix), verified practices (e.g., no-spray, regenerative) if you can support the claim.
  • Practical test: In one sentence, complete: “Customers buy my ______ because ______.” If you cannot fill it, differentiation is weak.

2) Demand signals: validate before you scale

Demand signals are quick, low-cost ways to estimate what will sell and at what pace. Use three methods together: observe, ask, and scan competitors. The goal is not perfect data; it is a confident shortlist.

A) Market observation (what people actually buy)

Spend 30–60 minutes at your target market(s) at peak time. Watch flow and note what sells quickly versus what sits.

  • What to record: busiest 30 minutes, which stalls have lines, which items are frequently handled, what sells out early, what gets discounted late.
  • Behavior clues: customers comparing prices, asking “Do you have…?”, buying multiples, or walking away after seeing quality.

Step-by-step:

  • Pick 2 comparable market days (e.g., one sunny, one average).
  • Walk the full market once without stopping; note the top 10 items you see in most bags.
  • On the second pass, note price ranges and quality cues (size, freshness, display).
  • Write down 3 gaps (items customers ask for, but few vendors carry; or items that look poor quality).

B) Short customer interviews (5 questions, 5 minutes)

Do quick, respectful interviews with potential buyers. Keep it short and specific. Aim for 10–15 conversations over two market days.

Script (adapt as needed):

  • “What are the top 3 farm products you buy most weeks?”
  • “What do you wish was easier to find here?”
  • “When you choose between two vendors, what matters most: price, freshness, variety, size, or something else?”
  • “How much would you typically buy at once?” (e.g., one bunch vs. three; one pint vs. four)
  • “Any items you stopped buying because of quality or inconsistency?”

How to use answers: Tally responses. Products mentioned repeatedly are candidates for your staple item. Complaints reveal differentiation opportunities (e.g., “greens wilt fast” suggests you can win on freshness and handling).

C) Competitor scan (what’s crowded, what’s missing)

Competitor scanning is not copying; it is understanding saturation and positioning. If five vendors sell the same item at the same quality level, you will need a clear edge or you will compete on price.

Step-by-step:

  • List the top 10 products sold by other vendors in your category (produce, eggs, flowers, etc.).
  • Mark each as: crowded (3+ vendors), moderate (1–2 vendors), or missing (none).
  • For crowded items, note whether anyone is clearly premium (better display, better quality, consistent sizing) or clearly budget.
  • Identify 1–2 “missing or weak” items you could supply reliably.

Reality check: A “missing” item is only an opportunity if customers want it and you can produce it reliably. Missing can also mean “hard to grow” or “doesn’t sell.”

3) Portfolio building: a simple 3-part product mix

Instead of launching many products at once, build a small portfolio that balances stability and margin. Use this structure:

1) One staple item (steady demand, reliable supply)

This is your anchor product: something many customers buy frequently. It should be relatively reliable and not overly fragile in handling.

  • Examples (vary by region): salad greens mix, eggs, tomatoes (in season), potatoes, onions, carrots.
  • Target outcome: consistent weekly sales and repeat customers.

2) One higher-margin specialty (differentiated, not easily compared)

This item earns more per unit because it is distinct. It may have lower volume than the staple but should create excitement and a reason to visit your stall.

  • Examples: specialty herbs (Thai basil, shiso), heirloom cherry tomato mix, edible flowers, baby ginger (where feasible), unique pepper varieties, microgreens (if you can produce consistently).
  • Target outcome: higher gross margin and stronger brand identity.

3) One seasonal add-on (short window, boosts basket size)

This item rotates through the year and helps customers buy “one more thing.” It can be more variable because it is not your core promise.

  • Examples: strawberries for a few weeks, sweet corn peak season, pumpkins in autumn, asparagus in spring, holiday greenery.
  • Target outcome: increased average transaction value during peak weeks.

How to choose your mix (step-by-step)

  • Step 1: List 5–8 products you could realistically produce with your current land, labor, and equipment.
  • Step 2: Use demand signals to narrow to 5 candidates (the worksheet below).
  • Step 3: Score and rank them; pick the top 2–3 to launch first.
  • Step 4: Assign roles: choose one as staple, one as specialty, and optionally one as seasonal add-on.
  • Step 5: For each chosen product, define a simple weekly availability goal (e.g., “20 bunches/week for 10 weeks”) so you can evaluate performance.

Worksheet: score 5 candidate products and choose your first 2–3

Use a 1–5 scale for each criterion (1 = poor fit, 5 = excellent fit). Add notes to keep your scoring honest. Then total the score for each product.

Candidate productShelf life (1–5)Ease of handling (1–5)Production reliability (1–5)Differentiation (1–5)Demand signal strength (1–5)Total (max 25)Notes (key risks/advantages)
1)
2)
3)
4)
5)

How to score “Demand signal strength” (1–5)

  • 1: Little evidence of demand; rarely seen in bags; few mentions; unclear use.
  • 3: Some evidence; moderate mentions; a few vendors sell it steadily.
  • 5: Strong evidence; frequent mentions; sells out for others; customers ask for it.

Decision rule: pick your launch set

  • Circle the top 2–3 totals.
  • If a high-scoring product has a 1–2 in reliability or handling, treat it as a seasonal add-on or delay it until your systems improve.
  • Make sure your final set includes: one staple (highest demand + reliability), one specialty (highest differentiation + margin potential), and optionally one seasonal add-on (high excitement, short window).

Worked example (for practice)

Imagine you are choosing between: salad greens, cherry tomatoes, basil, strawberries, and potatoes.

Staple candidate: Potatoes (high shelf life, easy handling, reliable)  -> Anchor weekly sales
Specialty candidate: Mixed heirloom cherry tomatoes (high differentiation) -> Higher margin, visual appeal
Seasonal add-on: Strawberries (high demand but fragile, short window) -> Limited run, boosts basket size

Now answer the exercise about the content:

When building your first small product portfolio for a local market, which combination best matches the recommended 3-part product mix?

You are right! Congratulations, now go to the next page

You missed! Try again.

The suggested launch mix balances stability and margin: a staple for consistent weekly sales, a differentiated specialty for higher margin and excitement, and a seasonal add-on to increase transaction value during peak weeks.

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Basic Cost Tracking for Farm Products (Without Complicated Accounting)

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