Blockbuster vs. Netflix - Your Farm Can Make A Choice
Many of the most successful Farms in the country drive consistent revenue with recurring orders, also known as Ongoing Subscriptions. These Farms are successful due to the fact that Buyers can make a one-click purchase to secure recurring orders from your Farm (weekly, bi-weekly, monthly as you see fit).
Your Farm no longer has to remind Buyers to order, chase down payments, or throw away products. Ongoing Subscriptions offer more cash flow and financial security to your Farm, and better convenience to your Buyers.
We sat down with Alex Russell from Chucktown Acres, who shared his tips for creating a trustworthy Farm Brand that delights Buyers with sustainable products made available with Ongoing Subscriptions. He explained the difference in profits from one-time orders, where you have to remind Buyers to purchase, versus Subscriptions, where your Farm can secure recurring cash flow. Listen to the episode below:
Convenience is King
Buyers want consistent access to Farm products that is simple and convenient. Regular pick-ups or deliveries that coincide with their schedules, products they desire, and a simple purchase experience can make a difference for Buyers when deciding to place an order from your Farm. If given the choice between your Farm and another producer (or Grocery store), Buyers will choose whatever is most convenient and accommodates their lifestyle.
When considering Packaging options, be sure to offer your Products in a variety of Bundle Boxes sizes. ⅓ of Americans live alone, ⅓ of households are 2 people, and the remaining ⅓ host 3+ people. Survey your Buyers via email and/or social media to better understand household sizes and Product packaging preferences.
We recommend Farmer’s Choice bundle boxes to simplify the decision-making process, move more products and simplify product assembly and fulfillment. Offering “add-on” Products then gives Buyers the chance to add any extras to their order, while increasing your average order value.
Niche Products can help your Farm stand out and attract new Buyers, but they are best suited as a supplement to core Staple Products (Proteins, Produce and Dairy), which are consumed more regularly. If Buyers are uncomfortable with a certain Niche Product, they may avoid it altogether (even if you offer recipes or cooking instructions). When given the choice between bacon and pig ears from a local Pastured Proteins Farm, 99% of customers will choose bacon.
This is not to say that you cannot offer Niche Products, but they may be great add-ons to bundles. For Farm Subscriptions, stick with familiar Staple Products (Proteins, Produce or Dairy).
Recurring Revenue with Subscriptions
Subscriptions are not only convenient for Buyers, but they offer consistent income for your Farm. With an online store, Buyers can sign-up at any time, put in their payment information and expect to receive your Products on a scheduled day. Your Farm can enjoy money coming in at all times, and grow your recurring revenues with more Subscriptions.
Alex shared, “I literally woke up this morning and I had emails that I sold several hundred dollars worth of meat last night while I was asleep. And that waking up to those emails, sometimes that's what gets me out of bed in the morning.”
Alex offers several Products on a Subscription basis, featuring those items at the top of his storefront (also known as a “Pinned Item”). While you should always encourage sign-ups, via newsletters, social media and Farmers Markets, you can be assured that Buyers will have access to your products 24-hours per day online.
While your Farmers Markets may only be open six months of the year, Subscriptions offer your Farm the ability to secure revenue year-round
With Ongoing Subscriptions, you can secure cash flow year-round, and Buyers will have consistent access to your products. This saves you time, instead of having to chase down individual, one-time-purchases every week of the year.
One-Time Purchases vs. Subscription Sign-ups
Ongoing Subscriptions give Buyers the opportunity to secure recurring orders without having to make individual purchases every week or month. This gives Buyers food security, and your Farm recurring revenue without having to constantly remind customers to purchase. Buyers may forget to repurchase a Product if they have to order it every week. It may also be stressful for you to track different orders every month, whereas Subscriptions provide consistent demand for your Products.
Blockbuster relied on you going [to the store], picking out a movie, paying for the movie, watching it, then you have to bring it back... With Netflix, you just give them your credit card one time, and then you have access to their entire movie library online. You never have to think, 'oh, did I pay my Netflix bill?' It's not a thought. Your credit card is charged every month without you even thinking about it, and you get to enjoy the benefits of paying for that service.
- Farmer Alex
If you have consistent Product that can be harvested on a regular schedule, why wouldn’t you offer Ongoing Subscriptions? Encouraging sign-ups one time is much easier than rallying Buyers to make a purchase every week or month.
For those Buyers unable to commit to Ongoing Subscriptions, your Farm can offer: (i) Seasonal Subscriptions for a specific duration of time (e.g. 3, 4 or 6 months), with a specific start and end date (if you have a limited season for your products); and (ii) One-Time Purchases (to try your products the first time).
Share your Farm stories and updates in newsletters and on social media, to attract Buyers and secure additional Subscription sign-ups. Consistent communications with your Buyers keeps your Farm Brand top-of-mind and builds loyalty. Sending newsletters with Farm updates, new products, order reminders and announcing Subscription sign-ups will encourage more sales.
Conclusion
Blockbuster required customers to return to the store everytime to make a purchase, which resulted in failure. Netflix, however, changed the entertainment landscape by offering mail-order DVDs delivered right to your mailbox for a recurring Subscription fee (then streaming). Netflix beat Blockbuster with a more convenient experience.
Convenience is king. Your Buyers want easy, ongoing access to your Farm products. If you do not offer convenient options, Buyers will find other alternatives (another Farm, Supplier or Grocer). Subscriptions offer convenient purchase options to Buyers, while also giving your Farm recurring revenue.
Offer consistent and easy fulfillment options for your Ongoing Subscriptions and you will build a growing base of loyal Buyers. Communicate with Buyers to encourage sign-ups, and allow for self-service via your online store. Your Buyers, and your bank account, will thank you.
Barn2Door offers software for Independent Farmers to create and promote their brand, sell online and in-person, and save time managing their business. If you’re curious to learn more, watch this 5-minute video.