Group buys ?

[Woldmarsh Producers]

The only business FarmDeals threatens ultimately is the traditional buying groups with their high cost structures and therefore expensive membership fees and transaction commission

It aims to bring efficiency and convenience by using technology to do what those traditional groups have been doing for decades along with national scale to help smaller suppliers access markets previously only available to larger merchants, a more open and transparent marketplace that ultimately functions better for US farmers

Good morning. May I make three corrections to your comments here please.
1) WM does not have a high cost structure. We employer fewer staff now than ever due to technology advancements and streamlining. For clarity, fewer than 21 including the P/T workers.
2) WM does not charge an annual membership fee. Our one off joining fee covers the cost of our accountants reviewing a prospective new members audited accounts.
3) WM does not, has not and will never charge "commission" or use terminology to that effect.

Heather Claridge - Chief Executive

 

[Derrick Hughes]

Gas , in bottles ???

 

[Clive]

Good morning. May I make three corrections to your comments here please.
1) WM does not have a high cost structure. We employer fewer staff now than ever due to technology advancements and streamlining. For clarity, fewer than 21 including the P/T workers.
2) WM does not charge an annual membership fee. Our one off joining fee covers the cost of our accountants reviewing a prospective new members audited accounts.
3) WM does not, has not and will never charge "commission" or use terminology to that effect.

Heather Claridge - Chief Executive

21 employees is a lot of cost in my book !! I suspect none of them do it for free !- the aim with a digital buying is that less than a half a dozen staff could service a 10,000 plus member digital group ! at the moment FarmDeals has juts 1 full time staff member looking after nr 2500 members ................... thats how you do low cost

if you charge no membership fee or commission how do you pay your 21 staff and other operating costs ? - I know groups like AF do charge pretty significant annual fees / commissions, I've been asked to join serval groups in the past but have always found them cost prohibitive and unable to get better prices than I have been able to get myself

 

[Clive]

First collective deals end tomorrow at 5pm, decent volume on these so hopefully prices will be very sharp, I'm in personally for MOP and glyphosate so fingers crossed. The more that join the better our buying power and therefore price will be

 

[Cloppy]

Good morning. May I make three corrections to your comments here please.
1) WM does not have a high cost structure. We employer fewer staff now than ever due to technology advancements and streamlining. For clarity, fewer than 21 including the P/T workers.
2) WM does not charge an annual membership fee. Our one off joining fee covers the cost of our accountants reviewing a prospective new members audited accounts.
3) WM does not, has not and will never charge "commission" or use terminology to that effect.

Heather Claridge - Chief Executive

I think the most important point to make here is how much the current UK Agricultural Supply Industry costs to run. It employs huge numbers of people along supply chains with too many links in it. What we as farmers know is that whole cost of running the supply chain is paid for my us. The trade may not like FarmDeals but the farmers certainly do.

 

[Cloppy]

21 employees is a lot of cost in my book !! I suspect none of them do it for free !- the aim with a digital buying is that less than a half a dozen staff could service a 10,000 plus member digital group ! at the moment FarmDeals has juts 1 full time staff member looking after nr 2500 members ................... thats how you do low cost

if you charge no membership fee or commission how do you pay your 21 staff and other operating costs ? - I know groups like AF do charge pretty significant annual fees / commissions, I've been asked to join serval groups in the past but have always found them cost prohibitive and unable to get better prices than I have been able to get myself

I think the most important point to make here is how much the current UK Agricultural Supply Industry costs to run. It employs huge numbers of people along supply chains with too many links in it. What we as farmers know is that whole cost of running the supply chain is paid for my us. The trade may not like FarmDeals but the farmers certainly do.

 

[Chris F]

I think the most important point to make here is how much the current UK Agricultural Supply Industry costs to run. It employs huge numbers of people along supply chains with too many links in it. What we as farmers know is that whole cost of running the supply chain is paid for my us. The trade may not like FarmDeals but the farmers certainly do.

I'm not sure the trade know what to make of it. They don't like Woldmarsh either, but have history.

The concept of group buys like collective is interesting and has drummed up a good demand (about a lorry load of glyphosate). I be happy to speak to Heather @Woldmarsh Producers about extending the deals to her members too. This sort of demand grouping makes it efficient for the trade and therefore allows them to give a better price based on that efficiency. Just demanding better prices won't work, we have to do our bit to offer efficiency too.

Still 3 hours for farmers to get there glyphosate demand in.

 

[farenheit]

Hopefully you'll tell everyone who didn't sign up what price was achieved?

 

[neilo]

Hopefully you'll tell everyone who didn't sign up what price was achieved?

Would that make them 'freeloaders', getting that information for nothing?

 

[neilo]

@Clive @Chris F Whenever I click on the Farmdeals link at the top of the TFF page, or in an email, it takes me to a page where I can click a button to 'join here'. I appreciate that I can get to the log in form through pressing that, but it would be much clearer if there was a 'Log in' button too.

 

[Chris F]

@Clive @Chris F Whenever I click on the Farmdeals link at the top of the TFF page, or in an email, it takes me to a page where I can click a button to 'join here'. I appreciate that I can get to the log in form through pressing that, but it would be much clearer if there was a 'Log in' button too.

It has been requested. I'll chase that up as it annoys me too!

 

[Chris F]

Hopefully you'll tell everyone who didn't sign up what price was achieved?

That's what Farm Compare is for. There is no requirement from collective suppliers for everyone to be offered the same price or even to offer every postcode a price. Pallet distribution costs differ and some farmers have ordered a quarter pallet and some a whole pallet. So there won't be a single price - there will be about 50 different prices.

We don't demand secrecy from our members though. If you want to see the prices - put your demand in the deal. You don't have to say yes.

Every farmer will receive a Collective Quotation to confirm or decline. So if you really want to know the price for your location and for your quantity - just be part of the deal.

 

[farenheit]

That's what Farm Compare is for. There is no requirement from collective suppliers for everyone to be offered the same price or even to offer every postcode a price. Pallet distribution costs differ and some farmers have ordered a quarter pallet and some a whole pallet. So there won't be a single price - there will be about 50 different prices.

We don't demand secrecy from our members though. If you want to see the prices - put your demand in the deal. You don't have to say yes.

Every farmer will receive a Collective Quotation to confirm or decline. So if you really want to know the price for your location and for your quantity - just be part of the deal.

Do you think suppliers are eventually going to lose interest in quoting for 50 different prices and researching delivery costs etc. only for 2 or 3 people to take them up on it? Surely their incentive is a simple big order?

I also feel that part of the beauty of the buying group model is that I pay someone to do the comparisons and tell me that 'yes, this is the best price on the market' - your model sounds like i'll still have to go out to compare it, as I'll have a different price from everyone else, so I won't have saved any time at all. And given that Farm Compare is unmanned, there will be nobody who will be able to make that assessment.

 

[Chris F]

Do you think suppliers are eventually going to lose interest in quoting for 50 different prices and researching delivery costs etc. only for 2 or 3 people to take them up on it? Surely their incentive is a simple big order?

I also feel that part of the beauty of the buying group model is that I pay someone to do the comparisons and tell me that 'yes, this is the best price on the market' - your model sounds like i'll still have to go out to compare it, as I'll have a different price from everyone else, so I won't have saved any time at all. And given that Farm Compare is unmanned, there will be nobody who will be able to make that assessment.

You don't think a distribution business knows their costs of distribution? It's literally their business model to move things from A to B. And yes the cost to get things to your farm is different to get to other farms (may only be a slight difference, but it will be different).

We do the standard version about too. But that is spot buying. You will get the best spot price (for your location). But the whole concept of group buys is to drive efficiency. Therefore the prices "should" be better.