# How to be competitive when the competition is priced too low?



## clkirk

We are a fairly new at bee keeping and this will be our first year selling to more than family and close friends. We have fifteen hives up from 3 last year. We have a local bee keeper that has been in the business for 40 plus years and sells at all the local farmers markets and health stores. I believe he has aound 1000 hives but he has been downsizing and wants to sellout. He sells raw, unfiltered and also bears with heated honey. He is selling pints (1.25 lbs) for $6.95 and quarts (2.5 lbs) for $12.95. This seems very low compared to what Bee Culture and what I am reading about what honey should go for. We want to be competitive, but don't see how we could sell at this price. This being a newer adventure for us and with high startup cost, I know we will take a loss, but I don't want to give all of our hard work away. Any suggestions on how I should approach pricing? We are planning on selling only raw, unfiltered honey in pints and quarts by word of mouth, craigslist, facebook and our website. Thanks for any input.


----------



## Dave Burrup

*Re: How to be competitive when the competition iis priced too low?*

Your market sets the price, not Bee Culture. The prices you quote are higher than what I could get. I hear stories about $10.00-$20.00 a pound honey all the time. If I priced like that I would have to eat the crop myself. We sell for $3.00 a pound plus the cost of the container the honey is in. I think that is probably the limit that I could push the price. If I was in a large metro area I probably could get more.


----------



## squarepeg

*Re: How to be competitive when the competition iis priced too low?*

welcome to the forum!

i am in exactly the same situation. quarts are the traditional quantity that most folks are used to buying around here. some of the long-timers are still selling theirs for $10 - $12, and most of the others are at about $14.

i ask $20 for my quarts, which i still feel is low for close to 3 lbs. but as much as i think i want to ask in my local market. i also offer 1 lb. squeeze bottles for $10 which i feel is a good price. luckily i sell about the same number of quarts as i do squeeze bottles so the average is about $7.50 per pound.

i have not been getting any push back from customers about my prices and tend to sell out about as fast as i can get it bottled up with about 600 lbs. sold so far this year. good luck!


----------



## clkirk

*Re: How to be competitive when the competition iis priced too low?*

I did some checking on Craigslist to see what other local beekeeper are selling it at and I see several at $6-$8 a pound. Some at $8 a pint. This is at least a bit better than the big time keeper in my area. I may try $8 a pint and $14 a quart. If it doesnt sell I can alway put it on "sale"


----------



## stan.vick

*Re: How to be competitive when the competition iis priced too low?*

I sell mine for 10.00 for a pint, my sister sells it for 8.00 for a pound jar. An old time beek sells at all the markets for 9.00 per pint. A great marketer in nearby savannah sells thousands of jars at almost twice what we charge. It's all in the marketing.
I have tried to create a customer base by giving honey to people that state they love honey, I got feed-back that they loved my honey, but few ever want to buy any. With few exceptions honey is an impulse buy, they are not shopping for a deal, they want your honey now, but when it's gone they will pick up the next jar they see, even if it's inferior honey at the local super market. So set your own price, just don't sell right next to someone that sells for less.JMO


----------



## beeware10

*Re: How to be competitive when the competition iis priced too low?*

we are the same as dave b. we sell honey just over $ 3.25 per lb. other wise it is sold wholesale in drums for $ 2.25. our containers are bought half price of dadants. for example last weekend we sold $ 500 cash in 5 hrs. works for us but most is still sold by a middle person at a regional market. after that it is whole saled in barrels. when the price got to 50 cents in the 70's we thought that was a big deal. there is a limit and when its reached honey will be like maple syrup. high price and lower demand.


----------



## gnor

*Re: How to be competitive when the competition iis priced too low?*

Just saw an ad on Kijiji in Nova Scotia for $8.50 for a 500 gram jar ($7.25/lb.) If you are selling farm gate, try to tell why your honey is the best around. For instance, there is a guy down the road that runs an "estate apiary" if you can believe it, and practices dynamic beekeeping, whatever that is.There are a couple of guys in London, UK who's honey is labelled with the postal code where it was raised. Local plus. I'm a long way from commercial agriculture, so I can sell premium wildflower honey. My friend up the road just puts a sign out on the road and sells all he can get at $12/kilogram (5.50/lb).


----------



## Harley Craig

*Re: How to be competitive when the competition iis priced too low?*

If you aren't the highest in your area you are leaving money on the table pints bring $7-8 here my last harvest I sold out in 10 min for $8 a lb its all it how you present it and yourself I find most beekeepers at my club are kind of backwards and seem afraid to ask a fair price one guy at the honey comp had an amazing honey the the bees got into some annise and it had the most delecate black licorice flavor I loved it and I HATE black licorice. I told him if I had that I would sell it for $20 a pound and have it all sold in a day I even offered to buy a jar for $20 and he wouldn't take it ...he was selling them for $6 a lb


----------



## Harley Craig

*Re: How to be competitive when the competition iis priced too low?*

The way I look at it if I can't get a minimum $8 I'll let the bees keep it and sell bees they can sweat their butts off and get stung for it


----------



## The Honey Householder

*Re: How to be competitive when the competition iis priced too low?*

My wife has a retail shop and her prices right now is $8 a lb. But as Ohio's largest honey producer we wholesale for $2.80-3.75 a lb in bulk. I have Ohio dealers that are selling for as high as $5 for 5 oz. jar and quarts at $30.


----------



## clyderoad

*Re: How to be competitive when the competition iis priced too low?*

How about marketing your honey to a different customer base? CL and FB, even your website does not reach a wide enough market.
If you are in it for the money find customers who want what you have and that are willing to pay for your story, for your production methods, and for your product. They may not live in your surrounding zip codes.


----------



## clyderoad

*Re: How to be competitive when the competition iis priced too low?*

dupe post


----------



## Harley Craig

*Re: How to be competitive when the competition iis priced too low?*


----------



## max2

I have been in businesses where I had competition for the last 35 years.
I think people worry to much about how much others selling a similar product.
We have always tried to sell the best possible product we could produce. Don't spend to much time worrying about others. Spend your time focusing on where you have an advantage - raw honey, nice label, package suitable as a gift, local.
Our competition under-sells our honey and yet we always are selling out at a higher price.
We rarely sell on line but we do sell bulk to restaurants and caterers and sell retail to a super market - people who are looking for a genuine product.
Sell so you can make a decent profit without being greedy. Be innovative. 
At 67 we are planning to add a few more hives simply because we hate to disappoint our customers!


----------



## Tenbears

you want to sell for higher prices, But your competition sell too low? your competition wants to sell out his business. Well that's a no brainer. Buy him out. then you can set the prices!


----------



## clkirk

Tenbears said:


> you want to sell for higher prices, But your competition sell too low? your competition wants to sell out his business. Well that's a no brainer. Buy him out. then you can set the prices!


Wish we could buy him out. He sells at many local heath food stores and farmers markets. Biggest beekeeper in our area. Unforunately my husband and i both have other jobs and time and financial resources are limited.


----------



## clyderoad

work up a clear explanation of what you do, how you do it and the product you produce. get it out there for people to see, especially
in front of those who are already partial to small, artisnal producers. people are looking for your honey and enjoy doing business
with people they 'know' and like- they don't need to be 'local'. Open a etsy store (or a jackeez store,) it has worked well for many smaller producers
of all sorts of products and reaches the buyers many had been looking for.


----------



## dsegrest

The retail market in Charlotte is $12 per pound this year. Honey is sold by weight so a 1/2 pint jar is $9. From that point there is usually a small reduction as the container size goes up.


----------



## Tim KS

*Re: How to be competitive when the competition iis priced too low?*



Harley Craig said:


> The way I look at it if I can't get a minimum $8 I'll let the bees keep it and sell bees they can sweat their butts off and get stung for it


:thumbsup: :applause:


----------



## oldfordguy

*Re: How to be competitive when the competition iis priced too low?*

It's been my experience that at farmer's markets, the customer base is usually people who want the best quality "organic" stuff they can get. Only they can't tell if something is organic or quality. So they just buy whatever costs the most. convinced they are getting the best. So price your honey at double what the competition does and you will sell out first! We have a guy here that bottles directly out of the extractor, jars complete with wax, beeparts, etc. and sells them for double the cost of his regular strained honey, and they sell out first every time.


----------



## crofter

*Re: How to be competitive when the competition iis priced too low?*

Don't forget to note that your bees are free range! That ups the perceived value considerably. Display some information leaflets about honeys properties, how to reliquify it, how many bee miles per teaspoon etc., etc. Merchandise the unique properties of honey. People will pay extra for something intrigueing especially for a gift or a treat. Have a cased frame of especially pristine capped honey on display and have a picture of some not so pretty ones. Dont run down the other persons merchandise but plant the seed of suggestion that causes the customer to make the association that yours is worth a premium price.


----------



## Harley Craig

*Re: How to be competitive when the competition iis priced too low?*



crofter said:


> Don't forget to note that your bees are free range! That ups the perceived value considerably. Display some information leaflets about honeys properties, how to reliquify it, how many bee miles per teaspoon etc., etc. Merchandise the unique properties of honey. People will pay extra for something intrigueing especially for a gift or a treat. Have a cased frame of especially pristine capped honey on display and have a picture of some not so pretty ones. Dont run down the other persons merchandise but plant the seed of suggestion that causes the customer to make the association that yours is worth a premium price.



I like to tell folks that I don't treat with antibiotics what so ever we have health bees or we get rid of them period.


----------



## aunt betty

*Re: How to be competitive when the competition iis priced too low?*

Old saying is "it's worth what you can sell it for today".

Am new to the honey selling market and real quick I got clobbered with some weird stuff so I'll share.

There is always some guy who will say how he used to buy all of "old whatsisname's" honey and is always looking for more. Then he drops his price on you. Think about $40 below the 5-gallon wholesale price. Yeah. 

I've put all my crop into 12 ounce bears an am selling it for $5/bear and can't keep it on the shelf. Must be where I live...a twin-city full of university kids who want to buy free-range chickens and organic vegan (on their parents cards).


----------



## VodoBaas1

*Re: How to be competitive when the competition iis priced too low?*

At $5 a Lb I'd buy your's all day too!


----------



## minz

*Re: How to be competitive when the competition iis priced too low?*

I am also at $5 a 12 oz bear, right next to $10 for a 1 LB Muth, , shrink wrapped cork, big labels and extra labels for ‘raw honey crystallizes’ and a round child warning on the top for the raw honey. I am running way more Muth to date than the bears. Figure $0.60 into bears and $2 into muth in packaging. I started doing the muth since I get them for free shipping they run close to what I could get glass queenline. I have also been cut rating the ½ gallons trying to turn enough cash flow to pump it back to the bees and get some buzz about my honey stand. Thinking of turning out some blocks of wax that I pick up at $6, render and sell for $8 just to add to the display.


----------



## clyderoad

*Re: How to be competitive when the competition iis priced too low?*

how much honey, by weight, in a 12oz bear? 
3/4 lb?


----------



## VodoBaas1

*Re: How to be competitive when the competition iis priced too low?*

It depends on what system of measure you are using. Most beekeepers use weight to sell honey (ie Lb or pound). Some people see by ounces (oz), but is is avoirdupois(avdp) or fluid oz? So, 12 fluid ounces equals 1 pound which also equals 16 avdp ounces. I sell mine by weight.


----------



## ChuckReburn

*Re: How to be competitive when the competition iis priced too low?*

Don't confuse wholesale prices with retail. It's all about marketing. Look for the niche, create the market. Know that every market is different and what works in 1 locale won't work in another. Be different = use muth bottles, octagonal jars, include a piece of comb honey, creamed honey, Ross Rounds. Be what the competition is not. Bring an observation hive to the market, have promotional material for the local beekeeping club, bring gloves and smoker and let kids put them on for photos. 

Several years ago we used to sell firewood - Craigslist was full of people selling it for less but the "father and collegiate son team" guaranteeing an honest measure had so much work, we were offering it at a sale price in August. Firewood in August? Yes, and I had an old customer call back today.


----------



## aunt betty

*Re: How to be competitive when the competition iis priced too low?*

By weight means 12 ounces of honey is a cup in volume. This means it takes 16 bears to make a gallon and that is $80 or $400 for 5 gallons. Subtract the ~60 cents a bear cost and I'm doing just fine. Why is this so complicated?


----------



## VodoBaas1

*Re: How to be competitive when the competition iis priced too low?*

Who said it was complicated?


----------



## KQ6AR

*Re: How to be competitive when the competition iis priced too low?*

Plenty of businesses do well even if there is a walmart in the same town.
You will have different customers than him. 

Here we sell for $10 per Lb. No problem selling it even though the fruit stands sell for $9


----------



## deknow

*Re: How to be competitive when the competition iis priced too low?*



minz said:


> I am also at $5 a 12 oz bear, right next to $10 for a 1 LB Muth, , shrink wrapped cork, big labels and extra labels for ‘raw honey crystallizes’ and a round child warning on the top for the raw honey. I am running way more Muth to date than the bears. Figure $0.60 into bears and $2 into muth in packaging. I started doing the muth since I get them for free shipping they run close to what I could get glass queenline. I have also been cut rating the ½ gallons trying to turn enough cash flow to pump it back to the bees and get some buzz about my honey stand. Thinking of turning out some blocks of wax that I pick up at $6, render and sell for $8 just to add to the display.


Do you not put a child warning on the bears?


----------



## minz

*Re: How to be competitive when the competition iis priced too low?*



deknow said:


> Do you not put a child warning on the bears?


Yes, the bears have a smaller label so not all of my address are on them and no ‘Crystal label’ but the child label goes on all of the lids (well maybe not the 6 lb jars to be completely honest)


----------



## minz

*Re: How to be competitive when the competition iis priced too low?*



deknow said:


> Do you not put a child warning on the bears?


Yes, the bears have a smaller label so not all of my address are on them and no ‘Crystal label’ but the child label goes on all of the lids (well maybe not the 6 lb jars to be completely honest)


----------



## sqkcrk

*Re: How to be competitive when the competition iis priced too low?*

Screw what other people sell honey for. Sell your own honey. Figure out what it cost you to make it and sell it for what you think best. If you want my opinion, your honey should sell for more than anyone else's. Especially since you are a beginner and therefore have a limited quantity.

Sell your honey.


----------



## sqkcrk

*Re: How to be competitive when the competition iis priced too low?*



clyderoad said:


> how much honey, by weight, in a 12oz bear?
> 3/4 lb?


How many ounces per pound, Clyde? A 12 ounce size Squeeze Bear holds 12 ounces of honey. Just like a 1 lb bear hold one pound. Weight, not volume.


----------



## Sharpbees

*Re: How to be competitive when the competition iis priced too low?*

I retail between 600-1000 lbs. each year at $10.00/ lb. There are several beekeepers around me that sell for $6.50 /pint and I still sell out before my next harvest. When I finally started selling honey, my first year I sold at cheaper prices but using advice from this forum the next year, instead of starting low and taking the price higher, I started high and never went down. My muth jars sell between $12-$15 according to the time of year.I spruce them up around the holidays but still clear $10/jar profit after cost. I am getting ready to try something new that will net $1/oz in 4 oz muth jars, if it works out I'll post what I did.


----------



## tech.35058

*Re: How to be competitive when the competition iis priced too low?*

I went to a "garlic festival" today. Watching the various vendors, and people.
one booth was selling honey & some other product, honey was $8.00 a pound.
another booth was nothing but honey, had a demo-box with a couple of frames of bees behind glass.
I _think_ they were getting $12.00 a pound, but they had a crowd in front of them most all the time I watched them. the others, not so much ...
setting up & working the shows is a lot of work, though. I left after a couple of hours, they were there for 2 days, early to late !


----------



## sqkcrk

*Re: How to be competitive when the competition iis priced too low?*

tech, if I ever sell at Farm Markets or Craft Shows my honey will be the most expensive at that gathering. Price does denote quality in the minds of many. Plus, I will make more profit per jar than the others even if I sell fewer jars. I am not well off enough, yet, to undercut myself.


----------



## Sharpbees

*Re: How to be competitive when the competition iis priced too low?*

If your looking to start selling honey, start high and come down if you need to. Yourcustomers will never balk at a price reduction but most will look at it negatively if you keep raising them. You will likely be surprised at how easily you can sell at the higher price. I look at it like this, as long as I don't have several hundred pounds left by the next years extraction I'm at a good price. I'm still not at that point, I always run out by Mar. or Apr. and have people calling every year to see when I'm going to extract. If you really want to add percieved value, enter your honey in honey judging contests and let people know if you did well. We took a blue ribbon in the amber class this year at our state fair, that alone has prompted customers to ask me why I haven't raised my price on it. Keep in mind I'm already the highest priced seller in the area and the customers think I should charge more. Be smart and start with a price that you think is just nuts and go from there.


----------



## minz

*Re: How to be competitive when the competition iis priced too low?*



Sharpbees said:


> If you really want to add percieved value, enter your honey in honey judging contests and let people know if you did well. We took a blue ribbon in the amber class this year at our state fair,


How do you advertise the ribbons? I was going to hang some plaques under the self-serve stand with the awards, we picked up 5 ribbons the last two years and was thinking the same thing.


----------



## Harley Craig

*Re: How to be competitive when the competition iis priced too low?*



minz said:


> How do you advertise the ribbons? I was going to hang some plaques under the self-serve stand with the awards, we picked up 5 ribbons the last two years and was thinking the same thing.


How do you get ribbons? I entered a club comp this yr and scored an 87 out of 100 I got dinged just a tad on moisture content, but got dinged the hardest on clarity, the only way to get the clarity that won is to heat the honey and run it through a very fine filter. My customers don't want heated and filtered honey, they want it raw and un filtered, and I let them know that. I have flat told people this won't win no fancy ribbons because I don't want to filter out all the good stuff. I think people who want local honey relate to that.


----------



## NY14804

Yesterday at our local "Wholesale Club" I saw 3 lb jars of honey priced at $8.29 each (their regular price). The label says it's honey from the USA and Argentina, minimally filtered to still contain beneficial pollen.


----------



## Clairesmom

We tried selling at farmer's markets ten years ago. We have excellent honey, raw, unfiltered, packed in glass jars with nice labels. We always took an Ulster-style observation hive, and had a table full of brochures from the NHB. Set our prices a tad higher than what the grocery stores were selling at the time.

Never sold enough to pay for the membership fee to the market  Let alone, gas to get there and other booth expenses. 

I can't imagine being able to sell honey for $8 or $10 or $12 a pound. Not in our area  If i could get even $6 a pound I'd go back and sell full time all summer long, but it isn't happening here.


----------



## AHudd

I was selling honey for $8.00 pint at a farmers market. A lookie-loo commented to a customer that she could buy honey at Walmart for less than that. The customer just looked at me, grinned and shook her head.

Alex


----------



## Clairesmom

AHudd said:


> I was selling honey for $8.00 pint at a farmers market. A lookie-loo commented to a customer that she could buy honey at Walmart for less than that. The customer just looked at me, grinned and shook her head.
> 
> Alex


Be happy that you have good customers. Wish we did.

Inability to sell honey in our area led to our decision to stop trying and to start selling bees instead. More demand, and people will pay for them and drive to our rural location to pick them up.


----------



## AHudd

I've been thinking about doing that myself.

Alex


----------

