Posted by Ron/PA on October 21, 2012 at 06:19:35 from (108.8.114.2):
In Reply to: Ear Corn posted by Rollie NE PA on October 20, 2012 at 17:10:36:
Rollie, quit trying to over think this. You're not dealing on the market. You're offering a product that's packaged for retail and trying to determine a price. Don't let anyone badger you about your price based on CBOT pricing, it just doesn't apply.
If you're not going to make any extra for your effort, then load up a pickup load every week and head for Middleburg or Dewart and sell it bulk and be done with it.
We're both in the same general market, selling the same product to the same customers.
The guy on craigslist just might sell at exactly the price his customers will pay, but he's very likely to have completely different customers than you'll attract. Even so, he's probably $40.00 per ton over market at that price. If you want to base your price on market value, then here's a source of info. for your local markets.
If everything were priced on commodity markets, then we'd be able to buy a box of corn flakes or wheaties for a quarter. We can't they're processed and packaged for convenience. So is your corn.
I use the 23"X40" feed bags that my mill bags my hog feed in. They hold a hundred pounds of finished feed but only about 50 pounds of ear corn. I find my customers prefer the smaller bags for ease of handling since many are women, and retired folks who just can't handle the larger weights.
I've got folks that buy every year, most of them buy just enough to fill their metal garbage cans to keep the rats, mice, and squirrels out of their supply. I'm certainly not opposed to making a Saturday morning run and delivering within a decent distance if I can combine a few stops, or dropping off to customers on my way to or from work.
I'm not sure what small feed mills are in your area, but if they have a store, or there's an outlet for this kind of thing around you, stop in and take a look at their pricing. See what they're getting and adjust accordingly for any service you're providing above and beyond. My customers aren't overly loyal to me, they just want a location that's fairly convenient, a product that's decent, and pricing that won't break the bank. Some stores actually sell plastic bags with a half dozen ears in them, it's all about convenience. If you're at Weis' and need a dozen ears, you might grab them at any price.
My corn is grown primarily to sell to my hogs, which in turn I sell to my customers, but if I have the time, retail sales will beat either one hands down.
By the way, I get $200.00 a ton out of my crib for deer hunters, right down to $10.00 for a 50 Lb bag tied and ready to toss in your car.
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