Level 8 · Part 3
Channels: where and how you sell
Each way of selling has benefits, costs and demands. Choose the ones that fit you.
A channel is the way a product reaches the customer. Each channel has a different cost, a different level of control and different demands on you.
| Channel | Often good for | Things to weigh |
|---|---|---|
| Direct to customers (stall, door-to-door, market) | Getting feedback, keeping the full price | Takes your time, small volumes, you carry the unsold stock |
| Shops and small retailers | Regular sales and a wider reach | They need steady supply and take a share of the price, may pay later |
| Institutions (schools, canteens, hotels) | Larger regular orders | Strict quality, hygiene and delivery needs, payment terms |
| Wholesalers and distributors | Moving larger volumes | Less control of price and brand, they take a share |
| Phone, messaging apps and online | Reaching customers beyond your area | Delivery, payment, trust, and the rules for selling at a distance |
Price, place and promotion together
- Price: cover your costs (Level 1), compare with what buyers pay now, and think about what the channel takes.
- Place: choose channels where your customer already shops or can easily reach you.
- Promotion: tell customers in simple ways: samples, a clear pack, word of mouth, a sign at the stall, a message to regular buyers.
Honest promotion
Use only claims you can support. Do not invent testimonials, do not copy others' photos or reviews, and follow the rules on advertising and on selling food or online in your country.
Exercise 8.3 · Choose my channels
- From the table, choose one or two channels that fit your customer and your strength.
- For each, write what the customer needs to see or hear before buying, and what it will cost you in time and money.
- Write the first small step you will take this month to test the channel.
Background reading for this part:
- Guidelines for small-scale fruit and vegetable processors (FAO Agricultural Services Bulletin 127) — Food and Agriculture Organization of the United Nations (FAO), Peter Fellows, 1997
- Agricultural and Food Marketing Management — Food and Agriculture Organization of the United Nations (FAO), I. M. Crawford, 1997