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Growing for Niche Markets
 

Novel products that significantly differ from the ordinary varieties and specifications grown in ornamental horticulture can provide new opportunities for the small to medium grower. Here are some 10 basic laws to be successful: Product differentiation: the customer must at first glance recognise unique, extraordinary differences that confer a cost/benefit advantage and the product must prove itself over time in the customer's house or garden. Demand must always exceed supply: volume of production must be controlled to build up demand and the grower must always sell-out of product. Prices must increase through the season: At the beginning of the season, lower prices can be offered in exchange for early orders and payment to benefit cash-flow. The customer should be informed about the dates on which prices will be increased so that he can benefit from buying earlier at lower prices. High margins: the margin over the costs of production and marketing should be no lower than 250% at retail price. Prices should never be allowed to drop: prices should be kept high at the end of a crop. Define and target specific customers: identify the customer profile that want and the factors that motivate this sector to buy. This will help create and promote your product. Never advertise price. Look for opposites: Look for the non-traditional and the weaknesses in ordinary products then grow the opposite (different and better). Do not devalue the product: it requires patience, vision, time and capital to allow a niche market to mature and consolidate. Be superior: the grower should try to be superior in all aspects from production to marketing and sales. Discipline: the worst enemy of niche marketing is compromise. The detail and integrity of your niche will determine long term success. Bob Frye "GrowerTalks" www.growertalks.com