MARKETING TO
CUSTOMERS WHO
WILL PAY YOUR PRICE Mike Badger
Broiler Economics
600 Bird Batches
• Chick: $1.08
• Feed: $3.24
• Grit: $0.06
• Bedding: $0.03
• Heat: $0.10
• Labor: $0.60
• Processing: $3.25
• Total Cost: $8.36
• w/10%: $9.20
150 Bird Batches
• Chick: $1.50
• Feed: $3.00
• Grit: $0.10
• Bedding: $0.06
• Heat: $0.40
• Labor: $1.40
• Processing: $3.50
• Total Cost: $9.96
• w/10%: $10.96
Cost Determines Pricing
600 bird batches
Cost: $9.20 per bird
• 4 lb. Carcass
• $3 profit: $3.05/lb.
• $5 profit: $3.62/lb.
• $6 profit: $3.80/lb.
• $8 profit: $4.30/lb.
150 bird batches
Cost: $10.98 per bird
• 4lb. Carcass
• $3 profit: $3.50/lb.
• $5 profit: $4.00/lb.
• $6 profit: $4.25/lb.
• $8 profit: $4.75/lb.
Note the profit difference on the similar selling prices
Layer Economics 200 Hens
Per Hen Costs
310 Eggs/yr
• Pullet: $17.94
• Feed Cost: $36.50 • 91.25 @ $0.40
• Misc: $5.00
• Labor: $32.85 • @ $12/hr
• Total: $92.29
• Cost/Doz: $3.57
1000 Hens
Per Hen Cost
310 Eggs/yr
• Pullet: $10.81
• Feed: $36.50 • 91.25 @ $0.40
• Misc; $5.00
• Labor: $18.25 • @ $12/hr
• Total: $70.56
• Cost/Doz: $2.73
Numbers courtesy of Jeff Mattocks: Income Positive Poultry Layers
Comparable Production
Cornish Cross (7 weeks)
• Chick: $1.50
• Feed: $3.00
• Labor: $1.40
• Proc: $3.50
• Other: $0.56
• Total: $9.96
• $2.49/lb based on 4lb
carcass
New Hamps (16 weeks)
• Chick: $2.00
• Feed: $8.40
• Labor: $2.40
• Proc: $4.00
• Other: $2.00
• Totals $18.80
• $4.70/lb based on 4lb
carcass
SPN Asheville, NC November 2016 Mike Badger | PasturedPoultryTalk.com 5
Ways to Increase Profit
• Raise price
• Scale up batch size
• Build better systems
• Improve labor efficiency
• Cooperatively purchase
• Improve feed conversion
• Sell in markets appropriate to your scale
• Join APPPA
A Few Notes on Pricing
• Price based on costs with caveats
• Don’t expect your customer to pay for:
• Your inefficiency (labor, water, processing, scale, stubbornness and
more)
• Feed and breed choices not in demand
• Your learning curve
Marketing v Sales
• Marketing gets leads
• Sales gets money
• Turning leads into money takes nurturing
• How do you measure your marketing efforts? SALES.
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How do you differentiate pastured?
• Let’s talk about why pasture is different.
• Let’s hear YOUR answers
• What’s your story?
• Breed choice?
• Health benefits?
• Local?
• No-soy? No-corn? No-wheat? No-chicken?
Finding Customers
• Prospecting
• Network
• Email / Research
• Website | Email | Social
Prospecting with
Email Cold Calls • Build targeted prospect list
• Google, Directories, Restaurants, Friends
• Write concise message with contact info
• Create a personalized template
• Not just emails – use on phone, in person at conference,
in a postcard
• Let the prospect know what you want
11
A Concise Cold Call Email
Hi, <name>!
I was browsing <a website> and came across <you>. I
think it is fabulous that you use locally grown and raised
veggies and meats as much as possible!
Although I realize that you have pastured poultry suppliers
already, I wanted to reach out and offer you one more
resource, should you find yourself in need.
Many thanks for all that you do to promote locally grown
and raised products!
Draw Sales Funnel
Website Basics
• You have one, right?
• Own your domain
• It’s affordable; own several
• Start based on your budget and skills
• Use for:
• Lead capture
• Marketing support
• Ecommerce
• Not every visitor is a good prospect. Use the website
(landing page) to target your customer. This will better
qualify the leads that do make it to your email list.
14
Wholesale Marketing Tips
• Personal relationships – Spence
• Market your strengths – Kara Gunthorp
• Trendy but fail to recognize stories or premiums. Shop based on
convenience of Sysco truck
• Firmly committed to local. Work with you
• Set price and stick to it – Grady Phelan
• Don’t undercut your wholesale customers
• Grow organically
• Form partnerships
• Great product is expected
• Appreciate your customers – promo, support, events
• Deliver samples, offer tours, follow-up – Will Harris
Website Optimization
• Cover the essentials (phone, email, address)
• List products and how to order
• Include service area
• Provide an email signup form
• We’re going to use this later
16
Search Engine Optimization
• How does Google know to return your website for a
particular search phrase?
• By the words on your website; Google cannot read your website’s
mind
• If you know your customers, you can write content that
they want
• Don’t obsess over keywords
• Content size doesn’t matter
17
Direct Response Email Marketing
• Closes the low-cost, highly effective marketing loop;
• Website attracts visitors
• Visitor becomes a lead by subscribing to list (web or market signup)
• List is actively marketed to and convert to sales (aka Nurturing)
• Good list required
18
Power of Email
• 74% of consumers prefer commercial communications via
• 66% of consumers made purchase based on an email
marketing message
• 138% more is spent by consumers who receive email
offers than those who don’t
• Source: Growing Your Business with Email Marketing by
Aweber: http://pasturedpoultrytalk.com/g535
Types of Email
• Welcome on subscription
• How to order, hours, markets attend, etc
• Autoresponder (on-boarding) sequence
• Introduction to practices, products, etc
• Broadcasts
• Farm hours, orders due, see us at market, product availability,
recipes, poultry news, etc
• Information (entertaining ok, too) that solves a problem for
the reader and shows them that you provide the solution
(by enabling them to purchase your products)
Email Do and Never Do
• DO:
• Ask for sale/doesn’t have to be hard sell
• Listen to what people do, not what they say
• Convince people not to buy, as well as buy
• Email gives people a way to get to know you and that means some
people will not become customers—it’s ok
• NEVER
• Add people to your email list without their consent
• Use a single email that is cc’d to dozens or hundreds of emails
• Focus on writing the “perfect” email
• Speed/efficiency is part of the payoff
21
Facebook in Context
• I see Facebook as a lead generator—I want all those
people to end up on my email list
• Never rely on Facebook posts as the sole way sell your
products—Facebook doesn’t show post to all friends
• All emails can be content on Facebook
It’s All About Trust, Baby
• Recipe for trust
• Decide on relationship manager
• Planning relationship-specific strategy
• Follow through
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Tips for Negotiating
• Know your costs
• Value added asks
• Practice, practice, practice
• Don’t be “slick willy”
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Contact Mike Badger
• American Pastured Poultry Producers Association
• [email protected] | www.apppa.org | 888-662-7772
• Pastured Poultry Talk Podcast
• www.pasturedpoultrytalk.com
• Visit for list of technical recommendations
• Processing Equipment at Badger’s Millside Farm
• www.millsidefarm.com | 570-713-9282