Buoyant roadside honey sales since lockdown

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Thanks for that good info, Philip.


PS: what is a profit on return?

Mark up is when you add a percentage to your cost price.

For instance if you bought something at a £1.00 and sold it for £1.25 that would be a 25% Mark up.

But .. what most businesses work on is profit on return so if they sold something for £1.25 and paid £1.00 for it then that would be 25 divided by 125 x 100 to give a profit on return of 20%.

It's just a different way of expressing the same profit but there's many a salesman who has come to grief when they didn't clarify whether the retailer they were selling to was talking about mark up or profit on return percentage ... 5% difference which comes out of YOUR margin if you get it wrong.

You could say that if you agreed a selling price of £1.25 you would need to give a DISCOUNT of 20% off the retail price to give the retailer a mark up of 25%.

Unfortunately, most retailers work on percentages when calculating their profit margins and really you are better off just telling them what the 'WHOLESALE' price is and let them figure out what they are going to sell it for...

It gets even more complicated when you have to deal with the national retail supermarkets because you have to factor in a whole load of other costs - money to get your shelf space, guaranteed promotions that give them a discounted price to their customer but maintain their cash margins, hot spot allowances, shelf end allowances, prime space allowances, promotional literature allowances, sale or return, I even had one major retailer who wanted a discount because he had empty lorries passing the factory and he wanted them to pick up his orders and 'save' the transport cost - yeh - saved it for them ... but we still had overheads tied up in transport so it really cost us !

These were, I hasten to add, not for sales of honey - I worked for a major management consultant firm for a number of years advising major brands how to negotiate the minefield of trying to make a profit and deal with supermarket chains ....the power they yield these days is immense and it's usually at the expense of the producer.
 
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really you are better off just telling them what the 'WHOLESALE' price is and let them figure out what they are going to sell it for

Yes, that was what my deli neighbour suggested.
That insight is fascinating and very welcome, although I'll have to read the % section again slowly (several times) and let it digest; reminds me of the dread days of maths lessons.
 
I know this is an old line of discussion but I am still struggling with pricing my honey, the reason being as a small hobbyist keeper with 4/6 hives in 2 locations both other people’s meadows I don’t maximise my crop and therefore usually have enough honey for my hive rent, myself, my father and his mates and don’t usually sell.

One of my landowners will, I have discovered, take all the honey I want To sell him, he isn’t reselling it just that he can give it away as coming from his meadow plus I always get my jars back from him. Is £4.50 for a 12oz hex about right? Plus I have discovered (don’t ask) an 18 Lb bucket of last years slightly crystallised summer honey which he wants, should I just let him have that for 4.50 Lb. I don’t think i am undercutting any market as not advertising these prices. But an the same time I don’t want to do myself out of hard earned cash!
 
I know this is an old line of discussion but I am still struggling with pricing my honey, the reason being as a small hobbyist keeper with 4/6 hives in 2 locations both other people’s meadows I don’t maximise my crop and therefore usually have enough honey for my hive rent, myself, my father and his mates and don’t usually sell.

One of my landowners will, I have discovered, take all the honey I want To sell him, he isn’t reselling it just that he can give it away as coming from his meadow plus I always get my jars back from him. Is £4.50 for a 12oz hex about right? Plus I have discovered (don’t ask) an 18 Lb bucket of last years slightly crystallised summer honey which he wants, should I just let him have that for 4.50 Lb. I don’t think i am undercutting any market as not advertising these prices. But an the same time I don’t want to do myself out of hard earned cash!
The price is fine seeing that you are technically selling it 'wholesale' It's about what I sell it to my retailers. and the same as what I sell it to my landlords when they want even more than the generous 'rent honey' they get.
Yes, last year's honey should be the same price - it's nowhere near it's 'best before' date as it will keep forever, I'm still using the last of my 2018 stock (a phenomenal year around here)
 
The price is fine seeing that you are technically selling it 'wholesale' It's about what I sell it to my retailers. and the same as what I sell it to my landlords when they want even more than the generous 'rent honey' they get.
Yes, last year's honey should be the same price - it's nowhere near it's 'best before' date as it will keep forever, I'm still using the last of my 2018 stock (a phenomenal year around here)
Thanks for that really helpful,
 
Last year I sold honey at £5 per 1lb jars.

This year I have sold out at £6 per 1 lb jar..I advertise solely on FB Marketplace *and a professional "Honey for Sale" sign at our gate.. and all sales are collect at door - except I will deliver FOC within 5 miles for 5lbs or more.

I know its's only c 300-400 jars a year.. (depending on weather etc..) but FB Marketplace with a well worded advert. brings new customers in.. and turns them into repeat customers.

We are, however, next to a school so lots of passing trade.

If I was selling 1,000 lbs a year , a different strategy would be required..
 
Same where I used to live. Local association set a price of £5 lb for its members to sell at local shows, the association then takes 10% for providing the selling opportunity.
Always used to pee me off as they never paid for a pitch, they were always invited to certain shows to provide a visitor attraction, even the local food fair weekend gave them a tent FOC, that also upset a lot of traders that paid for pitches as they started selling other bee related products along side the honey.
I myself have ditched jar sales and concentrate on bulk, mainly to restaurants, even here in Shropshire we have a beek selling @ £5 lb a mile from us, just cant be bothered with all the work when someone is willing to give it away like that.
My sales here have been consistent this season our local Baker started selling it at £6 for 340g in one shop they are now taking orders for three shops.
There's a veg shop in tenbury who buy it from me at £6 and sell for £7
Legs in bromyard have two shops and one in Hereford they again are buying it for £6 and selling for £7.50 for 340gs.
Legs have sold the most with over 150 jars so far..
Local sales have been consistent to I prefer selling local you don't have to use labels;)
I agree with you HJL jarring is such a hastle but it is nice to see people's faces and talk about your honey as long as they can take it!

I think if I become a bee farmer I will always sell jars of honey its such a nice way of connecting with folk.

Im not allowed to sell from the door as my better half doesn't want folk about. its ashame really as theres so many people about up here since lock down more than I've ever seen.
My supply will be gone by Christmas to except my winter supply.
 
I know this is an old line of discussion but I am still struggling with pricing my honey

I don’t think i am undercutting any market as not advertising these prices. But an the same time I don’t want to do myself out of hard earned cash!

Don't worry, Rowena, the discussion has been live since honey was discovered and the struggle isn't about to end anytime soon.

I agree with JBM that you're really selling wholesale, and to be plain, it's in your interest to foster a good relationship with farmers. You may have 4 colonies now but in a couple of years your farmer may suggest your name to another, and away you go.

Your awareness of undercutting does you credit; make sure when you do sell that you work to get good money in your area, and encourage others to go with you.
 
My sales here have been consistent this season our local Baker started selling it at £6 for 340g in one shop they are now taking orders for three shops.
There's a veg shop in tenbury who buy it from me at £6 and sell for £7
Legs in bromyard have two shops and one in Hereford they again are buying it for £6 and selling for £7.50 for 340gs.
Legs have sold the most with over 150 jars so far..
Local sales have been consistent to I prefer selling local you don't have to use labels;)
I agree with you HJL jarring is such a hastle but it is nice to see people's faces and talk about your honey as long as they can take it!

I think if I become a bee farmer I will always sell jars of honey its such a nice way of connecting with folk.

Im not allowed to sell from the door as my better half doesn't want folk about. its ashame really as theres so many people about up here since lock down more than I've ever seen.
My supply will be gone by Christmas to except my winter supply.

You're lucky. We have it 'ard round here. The selling price of honey in different parts of the country is an endless fascination. As I said in Post 23 above, - I supply local shop at £4/lb and they sell at £4.99. Two local garages have honey from another beek at £5.
 
You're lucky. We have it 'ard round here. The selling price of honey in different parts of the country is an endless fascination. As I said in Post 23 above, - I supply local shop at £4/lb and they sell at £4.99. Two local garages have honey from another beek at £5.

It's much the same even locally beeks even 5 miles away are selling it cheaper than me.
It's to do with location for me, and that there has never been a beekeeper up on the Clee... I can claim that my bees forage on and around the summit which is where most of my colonys are.

My prices will go up next year by 50p per 340g even a £1 and I know I will get what I ask for my honey.
 
I sell mine for £6 for 340g. I tried to sell 700g in a larger Pooh bear style jars which I bought cos I loved them, but they didn't sell. Smaller jars don't seem to sell either. I only sell at work and at a local Christmas fair (even managed to sell to a couple of beekeepers after they tasted it so was well chuffed). I don't have much spare after my own needs, relatives and friends, so it suits me. Thinking of upping the wight to 350g so it fills the jars a little bit better. I have had a shop offer to take any surplus, but so far I haven't had any.
 
Any opinions on whether round or hex jars sell better?
 
Both sell but hex are cheaper.
I think that just depends where you get them from. I get mine from Compak (I don't need huge amounts) and the round jars are cheaper than hexagonal. It's only personal preference, but it drives me insane trying to get the last dregs of honey out of all of the corners or a hexagonal jar, so I stick with round.
 
A few years ago, when I was asked to stock my local health food shop (she likes to offer a selection. she put my 12oz hex jars @ £5.00 a piece next to another local bee farmer's produce in 1lb squat 'ministry' jars which he was selling for £4.00 each.
Sales of mine consistently outstripped his
 
Not tested that locally as I've always used hex, but they do pack together tighter than the rounds. Almost like the bees know something...
Apologies I didn't mean to reply to this sorry.
I think that just depends where you get them from. I get mine from Compak (I don't need huge amounts) and the round jars are cheaper than hexagonal. It's only personal preference, but it drives me insane trying to get the last dregs of honey out of all of the corners or a hexagonal jar, so I stick with round.
Same here even more so with soft set or set.. I usually put hot water in the jar and tip in my cup for a cup of tea.
 
Where do people get their jars from? I get mine from C Wynne Jones. 12oz hex jars are £33.11 inc vat for 84 including lids. How does this compare?
 
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