Three ways to increase your agri-business revenue
Boost your income by exploring these strategies for Canadian agri-businesses.
Coming up with new techniques to bring in more sales dollars to your agri-business may seem challenging because you’ve likely experienced success so far by following your own revenue strategies. But a little fresh thinking may be just what you need to amplify earnings.
Consider these strategies to help increase revenue for your agri-business.
Any business with an operating history might first look at its existing customers for additional revenue opportunities. It’s simply far less expensive to sell more to an existing customer than it is to find a new customer.
Your customers already know and trust your operation, so they are likely more receptive to:
Your existing customers would likely rather buy from you than go through the process of screening an unknown vendor. Use every customer interaction to talk about the other things you can do for them.
Producers may be able to command a better price by selling to local markets.
Local businesses and consumers often value food grown or raised within the local area. It allows your agri-business to access the “buy local” trend where people are willing to pay premium prices for quality food produced by local farms.
Most people want to support a local farm and feel good about the food they are eating. Local restaurants and shops can gain competitive advantage by promoting the fact their food comes from a local supplier.
Selling to local market can reduce your costs, too. Transportation costs may decrease when a farmer selling produce or meat to local grocery stores and markets doesn't have to drive very far. Payroll costs can also decrease as well when your drivers travel less distance to make deliveries.
Improving output capabilities can increase revenue when your business can accommodate larger orders or demands for shorter processing times.
For example, purchasing more efficient farm equipment – such as tractors or harvesters –can help to reduce equipment costs over a period of time when that newer equipment carries a lower operating cost than current gear.
Every agri-business is different, so it’s important to consult with your advisors before pursuing any changes to your revenue strategy. The right advisor for you will have experience specific to agri-businesses and can share some industry best practices and provide valuable insight on your plans. Scotiabank has provided financial services to Canadian farms and agri-businesses for over 180 years.
”Scotiabank” is a trade name used by The Bank of Nova Scotia.
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