August 2021 - 16

FARM MARKET & AGRITOURISM
Changing face of retail keeps marketers on their toes
Constant communication with
BRIAN MOYER
Penn State Extension
bfm3@psu.edu
Retail has never been an easy business.
In a post-pandemic world, market
owners and managers face higher input
costs, higher labor costs and labor
shortages, resulting in the need to raise
prices that affect our customers. We
are still feeling the bullwhip effects
of a disrupted marketplace, and the
question I'm getting from managers is,
what goes back to " normal " and what is
here to stay?
Input costs should improve over
time. However, labor costs might
remain higher than in the
pre-pandemic period. Higher
labor costs are affecting businesses
everywhere, not just retail. According
to the Washington Post, " Some
649,000 retail workers put in their
notice in April, the industry's largest
one-month exodus since the Labor
Department began tracking such data
more than 20 years ago. " From big box
stores to small mom-and-pop are all
having to " invest in people " by raising
A well-laid-out farm market establishment can encourage return customers.
Photo: Brian Moyer
their hourly wages as businesses
compete for labor.
Experts expect the labor market to
even out as extended benefits issued
during the pandemic expire; however,
those businesses with increased hourly
wages know that there is no going
back.
Wages alone won't keep employees.
Our valued associates need to feel
safe, valued and have a rewarding
work experience. Here are a few
suggestions to consider:
Cross-train employees to do multiple
jobs, which builds transferable skills
and less stress when shorthanded.
employees is essential. Keep them in
the know and up to date on what is
happening with the market. Are we
having a good month? Invite them
to help solve problems. How can
we improve a department that isn't
performing as well as it should? Look
for ways to show your appreciation
for their work besides monetary
rewards alone, and keep an upbeat
atmosphere throughout the market.
Employees (and customers) know
when there is tension.
Improve the customer experience -
value for money.
Pricing products is always tricky.
Food is a commodity, so there is the
commodity price, but there is the
customer's perceived value of the
products we carry. Look for ways to
improve the customer experience to
create value for money.
Consider having a short- and
long-term strategy for pricing. If
in the short term commodities are
fluctuating because of a crisis, explore
ways to maintain stock and price
regardless of margin in the hopes that
in the long-term, your margins will
be where you need them to be. This
can build loyalty with your customers
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August 2021

Table of Contents for the Digital Edition of August 2021
