Selling in agriculture.

[Will Wilson]

Just putting an Idea out there for your feedback .

Would there be any interest (or does anyone know about a company already doing it) in selling farm inputs through a network of existing farmers to other farmers?

This could be as simple as finding farmers, husbands wives / sons / agriculture students on holiday looking for alternative incomes who could use there network to sell items like silage wrap.

Obviously there will be financial incentives - I expect co-operatives already perform this function anyway?

It's something that works well in Germany.

Just a thought. What do you think?

Will

 

[nick...]

Sounds similar to buying groups
Nick...

 

[Will Wilson]

I thought it was a bit the same perhaps with more of a sales push.

 

[ImLost]

Just been thinking this just now, and then i pop on here for a couple of minutes aaannnd.... TA DA! someone stolen my thoughts again
Even things like simple day to day stuff, cheaper to buy a couple of container loads direct and then distribute at very reasonable price. Could save an awful lot every year, look after the pennies and all that

Just as a (very) random example, someone was telling me recently that pringles were on offer for £1 a tube in the supermarket and it was an excellent price. Another person who happened to join in the conversation at that point said that he had been working with a purchaser at a major supermarket and they were only paying 50p a tube. They normally retail around £2! So just imagine how much you could save on other stuff, bog roll, firelighters, toothpaste, shampoo, cereals, bin bags, dishwasher tablets, foil, etc.
Or if we all went on a pringle only diet, i reckon we could get a good price.....

 

[Will Wilson]

Or imagine buying very special Pringles for 50p (cornering the market with your expertise for very special pringles in your area) selling the Pringles to your Pringle loving neighbours direct from Mr Pringle for 80p (making 30p) and never actually having to handle the Prinlges.

Pringles = silage covers .....for example

 

[kfpben]

Loads of Ag merchants employ farmers sons and daughters to be on farm reps for them. They are probably the most favoured type of prospective employee as they may be 'in the circle' already.

Some smaller farmers operate as agents for businesses selling agricultural products if the farm does not keep them busy full time.

 

[Goweresque]

The issue arises of liability. Who is liable for the product, the sales agent or the central supplier? Because once you start getting into product liability insurance etc it all gets a bit complicated, and expensive. For example, lets say a dodgy batch of bale wrap gets out into the sales network, who is liable for all the irate farmers ringing up with ruined silage? Particularly when the manufacturer could easily be on the other side of the world.

I'm sure its perfectly do-able, its just not quite as simple as it sounds.

 

[ImLost]

The manufacturer surely?

The issue arises of liability. Who is liable for the product, the sales agent or the central supplier? Because once you start getting into product liability insurance etc it all gets a bit complicated, and expensive. For example, lets say a dodgy batch of bale wrap gets out into the sales network, who is liable for all the irate farmers ringing up with ruined silage? Particularly when the manufacturer could easily be on the other side of the world.

I'm sure its perfectly do-able, its just not quite as simple as it sounds.

 

[Will Wilson]

The issue of liability is an interesting one- I could see this with an imported product but I cant see the issue for a UK based company who I would expect to assume liability - not the agent, this depends on the good relationship between agent and supplier. (it must be a win / win).

Farmers sons and daughters working for merchants is definitely a trend but they are employed - I am talking about a more flexible arrangement that would appeal to farmers wives, husband partners etc. looking for income around the day job school runs etc..... I can see a lot of other benefits for everyone besides the opportunity for more income. I don't see any risk?

I am only exploring the concept at the moment.

Hell if your keen get in touch!

 

[Cab-over Pete]

Or imagine buying very special Pringles for 50p (cornering the market with your expertise for very special pringles in your area) selling the Pringles to your Pringle loving neighbours direct from Mr Pringle for 80p (making 30p) and never actually having to handle the Prinlges.

Pringles = silage covers .....for example

Only trouble is, I can't eat a fraction of the amount of silage covers as I can Pringles.

 

[Tarw Coch]

Not sure if it's exactly the same as you're looking for but @Kevtherev in here has a couple of arrangements that I know of for selling things

 

[Sussex Martin]

People are already doing this, buying in bulk and selling on at a profit, can't seem to remember what it's called now, let me think---------------------------Oh yes I remember now EBay .

 

[dolf_lundgren]

but this isnt buying in bulk, it is just being an agent for the product. Which shoudl reduce the risk, but also reduced the margins. If the supplier is still holding the risk then is there much to cut out? If you physically buy 1000t of fert then it is your problem what you do with it. If you just act as an agent then if you dont sell it the supplier has to find a market for it. So they are possibly not going to give as much of a discount.

Some buying groups (East Anglia types) actually take control of the goods and buy them, but then they have huge balance sheets and cash with which to do that. Not sure how this model would work. Origin used to have farmers who were agents for their fert, it worked ok but it wasnt a huge earner for the farmer, could of quid per tonne I think.

 

[Will Wilson]

Good point Dolf - I wouldn't suggest its one for the farmers as much as for other people involved in the farm but not employed farming full time.

A retired farmer or farmers wife for example - looking for an income and a project that's flexible. We would do all the training etc.

I think there is a massive untapped marketing resource out there!

 

[TomD]

Who funds the purchases? surely the saving only comes off the back of a large order so you will be competing with the likes of your mole valleys, wynstays and alike its going to take a long time for you to get their sort of buying power?!

 

[How much]

The theory is ok its putting it into practice that is the problem, the agents would i assume need to work for someone who would compile the orders and pay the bills so overheads.

So take your pringles as example .

You approach pringles direct for an account to get best cost price, and they say ok but you have you buy more than 1/2 milion pounds worth a year to deal direct with them , otherwise go deal with bookers .
You also need a credit account, so a creditworthy business to hold that accoint .
And the price is per artic load deliverd to your warehouse, I doubt you would get tescos cost pricev either

So firstly can you buy 1/2 million ponds worth per year . Farmers only want a pallet or two each , so you will need a warhouse to accept the delivery from pringles ( you needn't own it but someone will need paying for it ) and that will add additional delivery cost to send out the part loads.
Also you need to fund that purchase till all all the farmers have paid you (more costs to go on youf cost price ) and you also pay a meaningful commision to your agents , again more cost. These agents will probably be expected to working a couple of months in arrears for there commision as you have no income till paid by customers.

GUESS WHAT , Before you know it , its cheaper to buy your pringles from Tesco's !

I wouldn't say it cant work but you need a year round business to make it work as the cost are there all the time, but i suspect bu the time its added up thereis less in it than you think.

 

[Kevtherev]

Not sure if it's exactly the same as you're looking for but @Kevtherev in here has a couple of arrangements that I know of for selling things

Myself and @Cab-over Pete sell guns we are usually seen heading from Malta in a speedboat
(Except saturdays)

 

[Goweresque]

The manufacturer surely?

Yes, in theory. A UK based manufacturer should be reasonably easy to make stand behind their product. But one from overseas (and the cheapest suppliers are probably going to be overseas ones)? How exactly do you enforce your rights over a company based in Turkey say, or Bulgaria, or China? Theoretically you can, practically its a bit more problematic. Which is why importers of goods from overseas, especially the cheap stuff, have a big mark up - they are taking considerable risk, because if the product is defective they are the ones in the firing line in the UK if there's a problem, and the chances of getting any money out of the overseas supplier is pretty low (and ruinously expensive). They need a healthy profit margin to compensate for those risks.

 

[Cab-over Pete]

Myself and @Cab-over Pete sell guns we are usually seen heading from Malta in a speedboat
(Except saturdays)

Great. I thought we weren't supposed to tell anybody that.

 

[Tarw Coch]

Great. I thought we weren't supposed to tell anybody that.

Nah, the gun running is small fry, it's that pallet load of Semtex you fetch in on Saturdays you're not supposed to mention..................well, not on tinternet anyway.