Full Transcript

Sari
Welcome to your Food Business Success. This podcast is for early stage entrepreneurs in the packaged food industry ready to finally turn that delicious idea into reality. I'm your host Sari Kimbell. I have guided hundreds of food brand founders to success as an industry expert and business coach, and it's got to be fun. In this podcast, I share with you mindset tools to become a true entrepreneur and run your business like a boss, interviews with industry experts to help you understand the business you are actually in, and food founder journey so you can learn what worked and didn't work, and not feel so alone in your own journey. Now, let's jump in!

Hey, Danny, welcome back to the podcast.

Danny
Hey, Sari. Good to be back.

Sari
You're becoming a regular, which is so good. You're a regular in Fuel now.

Danny
It's an honor.

Sari
Love it. Okay. So today we're talking about, one of our favorite things that we share in common is farmers markets, talking about farmers markets. I love Spring, I always love talking about farmers markets. I know some people go year round with markets. But a lot of people, you know, farmers markets ramp up in a lot of areas in the springtime and going into summer and fall. So I love helping people get prepared for farmer's markets. And you and I are going to do an amazing workshop on March 13th. Live. And we'll talk about that at the end. But I just want to have this fun conversation, we're going to have a back and forth about taking your farmers market business to the next level. So tell us why you like farmer's markets. Tell us a little bit about your farmers market game.

Danny
Yeah, sure. I mean, I love farmers markets. This is the right time of year to be thinking about them. You know, a lot of people think that they're kind of like a little, you know, kind of cute, like thing that isn't like really, you know, a way to grow a business, but I'm quite the contrarian with it. I think it is one of the best way to grow your business. And the reason is how capital efficient that channel can be. You know, when you look at, you know, the goal of the business ultimately, is that it needs to profit to self sustain. And when you look at how much margin you give away, and almost any other channel, including e Comm, where you have to pay freight, you're actually the most profitable in the farmer's market channel, if you can figure out how to scale it. So at Peak State, we have doubled down on that and really focused on our events and grassroots farmers markets to grow our brand. And there's a whole list of reasons why I could basically sell you on how the farmers market channel can be wiser than retail. Like can be a great marketing strategy and a whole lot more.

Sari
All right, so people want to get your full history and all about Peak State, they can go listen to Episode 172. But I'd love for you to tell us what exactly you did in the last few years for farmers markets specifically? Like what does your business model? Give us the scoop on Peak State and farmers markets specifically.

Danny
Yeah, let's see, we have an average about 200 events per year. I think in 2022, we did almost 300. So that's how all in we are. And you know, I think it all started for me where people were like, oh, you should open a coffee shop. And I was thinking about that. And I was like, okay, well, the majority of people will come on Saturdays and Sundays. And then I'm like, okay, I got to pay rent. And that's good. And then I have to make sure it's staffed all the time. Basically, you need to live right behind it and make sure that if no one shows up, I show up. The coffee shop, you do a Saturday and Sunday thing. And then if you want to eliminate rent, you have a farmers market. For me, it was a no brainer.

Sari
You do have an MBA. So it's clearly showing how you are thinking about businesses and you're trying to get the most out of it and be really strategic and smart about how you run a business. I love that. But 200 or 300 events, that's insane. A lot of events. So how on earth did you attend all of those or was it all you?

Danny
And that's the whole thing. In the beginning it was all me and I had to realize I was not Superman and ask for help and find.

Sari
Yeah, that would be a lot to do. And so, what I love and things that you bring to Fuel and to Master Your Business is that you have created strategy around farmer's markets and in fact, you're not like scheduled for any farmers markets. You're there to, from what I understand what you told me, you're there to like be a backup when necessary. But you actually took, but did you take like two months off last summer?

Danny
Yeah, I needed a sabbatical last year after three years of being all in building a brand. And I was able to take one and the systems were in place. And that felt really good. So yeah, it took me a while to get there though.

Sari
Because that's probably one of the number one things we hear, right? Of like why people don't want to do farmers markets is because they don't want to give up their whole summer or every weekend. That's fair. But it's not necessary. Doesn't always have to be you. And you can still have great market days, none of this, well, if I'm not there, then we don't have as high of sales. You are showing us that you can hire staff that has as big of days and as much sales as if you were there. And you are able to step away and take a two month sabbatical. And enjoy your summer and the money keeps coming in and you're able to fund your business. I love that.

Danny
Okay, everyone listening also wants to know, you know, because secretly you also wear the hat as a market manager for up there in Fort Collins. So tell us brands, like you know, when you're looking at an application for a farmers market, you know, somebody is trying to get into your market. Tell us some of the things you'd like to see. And some of the things you don't like to see. Maybe some would like to see and then get into the like.

Sari
Yes, it's secretly but not really a secret. So I have managed a farmers market. I own a farmers market, which is a weird thing to say. People are like "you own a farmers market?" I do. So gosh, I took that over in 2019. So it's been a number of years, and I've created a really great strategy. Like, I don't have to go to those markets, either. Which is amazing. Just work. Yeah, every season, you know, we open up the applications to every year, it gets bigger and bigger. And we have to go through and review, you know, especially categories like coffee and baked goods. And there's definitely categories that have a lot more vendors, hot sauce, all of those things that we have to review and consider. And when I think about what I look for, and I've worked with a number of people on their application process and helping them get into those coveted markets. It's, you know, first of all, it's just like, looking like you have your act together. Like, it's like any application for a job. Like, if the question says, please list your products, and you know, ask you for specific details, then do that. Don't be like, you know, some vague question or only list a couple, or something like that, right? Like, we never want to have to go and explore and go look at your website and be like, what, they also sell all these other things like, I'm confused, what are you trying to sell, right? Like, fill out the question in sentences and like, take it seriously, right?

Danny
Okay, so meet the basic requirements. Let's go give it more of an effort. And then listen, we answer every question, you know, as if we're trying.

Sari
Right. So that's basic, right. But beyond that, it's like showing me that you're going to be successful. Because while maybe people think that, and some markets are run by like nonprofits or government agencies, but you know, private markets especially, and they still have to pay for staff like a market is still a business. And so I as a business operator, am looking for people who are actually like going to be successful and are going to show up on time and bring lots of product and sample and know how to sell their product because we do a hybrid model, right? Where it's a booth fee, a lower booth fee, and then we also take a percentage of sales. And so the better you do, the better we do, right? And the more we can put back into marketing so that we can grow the customer base, and we can grow the support staff, and everybody's happy, right? So I'm definitely looking for people who are like, you know, maybe have a track record of sales. And even if you don't have a track record that you're like, I'm there to show up, I'm there to sell, I have my act together, I got great marketing, right? Like, it looks like they're in it to sell.

Danny
Okay, so yeah, a lot of us need to remember that this is about proving to you that we'll help make you money by selling. So that's one piece. And then, like, what about, you know, some sort of like, what about like, reliability? Or punctuality? Or what about, you know, picking up my trash? Or what else can we be doing? How about differentiation as it pertains to the market? What else should we be thinking about to really be a shining star in your application pools? Hundreds of brands.

Sari
Yeah, exactly. I mean, we probably get 300 applications. So it's a lot. And I know, markets, you know, Boulder County and South Pearl probably get even more than that. So I'd say like, anytime you can show that you're going to be a great partner, right, to the market. But you know, you're talking about how you're going to show up early. You know, every time you're going to communicate with us, you're going to post on social media and tag the market, you're going to tag us and, you know, like and share our stuff, and you're like, engaged again, the more we can get more people to the market, and everybody does better. And that, yeah, you're going to pick up after yourself, and you're going to be a great neighbor. And like, there's definitely some words that I can tell where I'm like, feels either like a little entitled, or kind of a bad attitude. So I'm definitely looking for like, positivity and great partnership, and like recognizing that, yeah, we're there to serve you and provide you a platform, but it's a community effort. You know. It's a group that's all winning together. So I'm looking definitely for words, and, you know, stories or examples around partnership.

Danny
I like that. So just thinking about what it's like to be a market manager, and what problems you might face and seeing how I can make sure that I'm not one of those problems.

Sari
Yes, exactly. And there's a really great podcast I did with Nicole Jarman. Actually have the you know, she's got like four or five now, she runs a lot of them here in Denver, but it's called Confessions of a Market Manager. I think it's like Episode 25. Somewhere around there, I'll put the link in the show notes. But we kind of like spill the dirt on all the, that's crazy. But it's also things like, hey, if we gave you, you know, maybe we can't give you the full season. Like a lot of times with coffee vendors, for instance, you know, recognize that, you know, we want everybody to come but we're also trying to create, we don't want oversaturation of any one product, because then you know, if there's like eight coffee brands, and maybe nobody does as well, but so sometimes we have to sometimes we'll do something where we'll like give you certain dates that you requested. And so you know, again, having a good attitude, like thank you for those dates, and we're going to kill it. So that when I have a cancellation, somebody else cancels, I'm like, you're my first person that I'm pulling in.

Danny
Love that.

Sari
I get a lot to say though. But yes, you can go listen to other podcasts and hear even more about it. And I have some additional tips and secrets up my sleeve that I am saving for our workshop, you know, as a whole, as somebody who's been working with, you know, I own the market. But for the last, you know, five, six years now, I've been working with brands, hundreds of brands, helping them be successful in farmer's markets as a great platform. And I'd love to actually talk about this. Like, why do you think markets are a great avenue, a great sales channel to explore? And you and I talked about three different things that we're going to expand on in the workshop.

Danny
Yeah, totally at the highest level. The reason we are such firm believers. I touched upon this one, the first one is really sales, you know, and even more further from that profitability. So that's one thing. You can make money really well in this channel if you focus on it, and this is something that you can do while doing two other things at farmer's markets. So another thing that you can get out of farmers markets is the marketing. So this has been so huge for us because we get to give people the exposure of our brand. They get to feel our brand, they get to see it, interact with it, interact with our team, and see our products. It's the only channel where you get to see your customers. You might Google them, if you see they ordered something online, or you might, you know, guess who your retail customer is. But at a farmers market, you get to see who your customers are, and meet them and build a relationship with them. And that could even be, you know, something that you take into another channel. So the marketing benefit is massive. And then the third reason that I highly encourage every single new brand to consider a farmers market is for testing and validation. You have so many decisions to make. Why don't you let the people who are taking out their wallet and buying your products decide for you? So ask them, hey, which packaging do you like? And then the next week, come up with a new goal. Test two different sales pitches, see which one works better, and then maybe put that on your website or on your packaging. You know, try two different new products and see if there's one that they prefer. So you can double down on that and simplify. So you have the opportunity to be a little bit of a mad scientist and refine your business at every single market. So yeah, those are the three reasons I recommend them, the testing, the sales, and the marketing.

Sari
So we're talking about, we can actually make money, we can make cash flow. And I know quite a few brands who use markets in that way to help fund the rest of the business. I hope people listening understand like that you have to put money into your business upfront. There's just no way around it, right? You have a product based business, you need some amount of investment capital. But if you can just get to that MVP, that minimum viable product, which we've talked about before on this podcast, then then you can test it, and you can be making money while you're testing it.

Danny
I don't know about you, but if I need to learn and I need to market, I'd rather make money while I learn and market.

Sari
I talk with some brands, you know, and sometimes there's products that are way more expensive to do and you can't just like, let me try, you know, let me print off a different label or try a different feel. But like, a lot of products, you can get by with some minimal packaging, some minimal labeling. And you know, that way you can test it and play with it. I'm thinking about a client that I helped launch last fall into farmers markets, and we kept everything really simple and really easy to change. And she was so surprised, you know, like, oh, actually, it was this flavor that sold a lot better. And, oh, I got a lot of feedback that this was too sweet or, like she made a lot of changes and being really flexible and nimble allowed us to keep adapting and trying things at the market to get to the thing that we know will sell. And I highly recommend you start there. Because yeah, I promise you, by the time you're ready to go into a co packer or get pre printed packaging, you will completely change what you thought it was at the beginning.

Danny
I love that. And okay, so you know, I'm a brand that does a lot of these markets, and you're actually a market manager. And you know, you've hinted that this that we're going to collaborate on this workshop. You know what, no, well, what exactly should we tell people we're going to be doing here.

Sari
So I've been working with you the last few months, brought you in to Fuel as a guest coach, brought you in to Master Your Business as well. And I love how we round out each other's skill sets. And so you and I've been talking a lot about, you know, what are the things that you can really help people do and it comes down to this whole Farmer's Market strategy is one of your ninja skills, one of the things you're really good at. And I already love talking about farmers markets, and I've done multiple workshops and things like that, over the years. And I love the idea of like, let's take this to the next level. This is not just about getting started or having a little hobby business on the side. We're like, oh, that's so cute. We go to farmers markets. But let's make the most of every weekend you are there. And if it's you, we are going to make the most amount of sales. We are going to go big and we're going to create more customers and excited customers who keep coming back and then they buy online from us when that opens up. And we're trying new things. And then when it's time then you're also going to bring in staff so it's not about this is my life now where I give up every weekend and my whole summer, it's this is a sound strategic business model. And Danny, you are doing amazing things, executing it and making it look easy, although you've created great systems on the backend. So we're going to teach you how to do that, how to get the most money and value out of farmers markets. So you and I sat down and brainstormed all the things, all the objections that people might have, all the issues that come up when thinking about farmers markets. So tell us a little bit more from your side of things.

Danny
I was telling you all the things that we've had to work through, right, so how do I know which markets to apply for, you know, how do I get accepted this application process, all this paperwork is annoying. How do I do that in a seamless way? You know, how do I position my products and pricing? How do I not burn out? This channel can be exhausting if I do it wrong. How do I deal with slow markets and no traffic? How do I deal with wanting my weekends? How do I get my sales up? You know, how do I engage customers? I don't want to bother them. But like I'm trying to sell stuff here. You know, this is just beginning. But yeah, like so we'll get into all of these things. And I think that coming from my real problems, I wished I heard this earlier.

Sari
I know. And that's what I kept coming back to it was like, okay, picture yourself, you know, four years ago, when you were just starting. Like, what are some of the things that you really would have loved to have figured out before you did it all the hard way, right?

Danny
Yeah, I mean, how to apply and get accepted every time you know, how to plan? And what goals should I even set for a farmers market? Are my goals realistic? Like, am I being intentional enough about what I'm hoping to get out of them? Or am I just like dragging myself there and going through the motions? We will cover all that.

Sari
The workshop is going to be incredibly valuable. You're also going to get, Danny, you're putting together a farmers market packing template that you're going to get as part of it. I have my favorite things, toolkit of everything, all my favorite things over the years, that you need to run a successful farmers market. I'm also going to have a template and help you with crafting that application so that you can get accepted into those markets. And then you're also doing just like a planning for the season worksheet to set those goals and be intentional with it.

Danny
Yeah, I mean, I think when I started markets, I was making about 1/5 of what I make now at the minimum, and sometimes 1/10. And so like, the things I wish I knew in the beginning, like if you join us, I can guarantee you, you're going to so quickly breakeven on disinvestment within one day at a farmers market, it's a no brainer,

Sari
We will get your sales up by at least $97 in the first market, if you apply these strategies. So I'm excited about it. And you know, you were telling me that you do some of the sales strategy for brands and you charge like 500 bucks. You go in and work with them and help them set up their booth for sales and figure out their pricing strategy. And just really take it to the next level with customer acquisition. And all of the things we're talking about here. It will be live on March 13th, is when we're going to teach it live at 12pm Mountain Time. And the link for that is foodbizsuccess.com/uplevel and it'll be in the show notes down below. And of course, you can get this anytime. You can buy the replay and grab the workshop if you're listening after March. But if you can, you definitely want to join us live. It'll be 90 minutes for the live version because it'll include Q&A. And we're also going to do some really great bonuses and giveaways for people there live.

Danny
Love it. Let's go sell stuff this year, everybody at farmers markets.

Sari
Yeah, let's use the farmers market channel as a way to grow your business and take it to the next level. We're both on a mission to help brands create 100k business and then go to the next level, right, under that 300-500k business.We both wanted to create a workshop that was very much about like, let's up level that farmers market game. Anything to add to that? Just like shaking his head. He's like, yeah, thumbs up.

Danny
You're preaching, preaching to the preacher here. So.

Sari
I'm excited to be able to present this and I hope you guys will join us. It's going to be so great. Put the link in the show notes. That's it. We're going to wrap it up, keep it sweet and short here. So if you are all in the farmers markets, come join us in this workshop. It's a no brainer. We'll see you there.

Danny
So come join us, looking forward to it.

Sari
All right. If you can't tell or already, I get super fired up about farmers markets, Danny does too. And we can't wait to do this workshop for you guys. And until next time have an amazing week!

The smartest thing you can do as an entrepreneur is to invest in a who to help you with the how to speed up your journey and help you skip the line. When you are ready for more support and accountability to finally get this thing done, you can work with me in two ways. Get me all to yourself with one on one business coaching, or join Food Business Success which includes membership inside Fuel, our community of food business founders that includes monthly live group coaching calls and so much more. It's one of my favorite places to hang out and I would love to see you there. Go to foodbizsuccess.com to start your journey towards your own Food Business Success.

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