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Sunday sales reign supreme and other takeaways from review of farmers market transactions

2023-12-21
(Press-News.org) CORNELL UNIVERSITY MEDIA RELATIONS OFFICE

FOR RELEASE: Dec. 21, 2023

Kaitlyn Serrao

607-882-1140

kms465@cornell.edu

 

 

ITHACA, N.Y. – Cornell researchers partnered with New York livestock farmers to analyze transactions at farmers markets, finding that sales were better on Sundays, early in the morning, and during certain months of the year. The study, which researchers believe is the first peer-reviewed analysis of customer-level transaction data at farmers markets, gives new insights into how farmers can make markets more profitable for them.

The researchers and farmers used point-of-sale devices that record sales and process credit card payments to look at more than 26,000 transactions. The study, “Increasing Customer Purchases at Farmers Markets Using Point-of-Scale Scanner Data,” published Dec. 13 in the Journal of the Agricultural and Applied Economics Association.

It showed that, on average, farmers market customers spent more per purchase on Sundays compared to Saturdays. They bought more during the holiday months of March, April, November and December. The biggest sales were made at the beginning of the market or even before it opened, and then transaction totals declined substantially by hour thereafter. Ground beef was typically purchased in quantities of two pounds or more. Customers also purchased more when paying with debit or credit cards. And, when the number of transactions in a five-minute period increased, the dollars spent per transaction decreased.

“Traditional retailers like grocery stores have used scanner data for years to better inform how they should market to their customers,” said Todd Schmit, professor of applied economics and policy and co-author of the study. “For farmers, the data was just never available before. So now with the advent of new technologies, we can bring that marketing power to the farmer.”

Farmers do not just vie for customers at the market, they also compete against grocery stores that carry local food products. Plus, earlier research showed that farmers markets are the worst performing sales channel for vegetable farms in terms of sales per hour of marketing labor.

The findings lead to many specific recommendations to help farmers increase their sales. For example, farmers could attend more Sunday markets, increase product prices and volume at holidays, and bundle products like ground beef.

For additional information, read this Cornell Chronicle story.

Cornell University has dedicated television and audio studios available for media interviews.

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[Press-News.org] Sunday sales reign supreme and other takeaways from review of farmers market transactions