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How Value-Added Products Can Increase Your Average Order Value

Posted on October 31, 2022

If you're a farmer looking to increase your average order value, you may want to consider adding value-added products to your lineup. Value-added products are items that have been processed or otherwise altered in some way to make them more valuable to the customer. For example, you could take fresh fruits and vegetables and turn them into jams, jellies, or other preserved goods. Or you could take raw milk and turn it into cheese or yogurt. Not only do value-added products typically sell for a higher price than their unprocessed counterparts, but they also often have a longer shelf life, which can lead to repeat sales.

Read More: The Benefits Of Farm Management Software

What Is The Average Order Size?

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The average order value is the value of all orders divided by the number of orders. Value-added products can help increase your average order value by increasing the total value of all orders, and/or by increasing the number of orders.

For example, let's say you sell jam for $6 per jar and cheese for $8 per jar. If you sell 10 jars of jam and 5 jars of cheese, your total sales are $80 and your average order value is $16.

What Can Add Value Products?

There are many different ways to add value to agricultural products, so there's sure to be an option that makes sense for your farm. If you're not sure where to start, here are a few ideas to get you thinking about how you could add value to your products:

  • Pickling or canning fruits and vegetables
  • Making jam or jelly from fruits and berries
  • Turning milk into cheese or yogurt
  • Making honey from the beeswax
  • Pressing olives into oil
  • Smoking meats or fish

All of these options add value to the products by altering them in some way, making them more valuable (and delicious) to the customer. And because they often have a longer shelf life than their unprocessed counterparts, they can also lead to repeat sales. So if you're looking for ways to increase your average order value, consider adding some value-added products to your lineup.

Read More: How To Implement Big Data Analytics In Agriculture

How To Increase The Average Order Value?

There are several ways farmers can increase average order value with value-added products:

Special Promos Or Offers

You could offer a discount on value-added products when customers purchase a certain amount of other products. For example, you could offer 10% off all value-added products when customers purchase $100 worth of other products.

Bundles or Sampler Packs

Another way to increase average order value is to create bundles or sampler packs of value-added products. For example, you could create a sampler pack of jams that includes one each of strawberry, blueberry, and raspberry jam. Or you could bundle together a set of pickled vegetables.

Gift Cards

You could also offer gift cards for value-added products. This is a great way to increase average order value because it allows the customer to purchase the products at a later date. And since gift cards don't expire, there's a good chance the customer will come back and make another purchase.

Email Notification

You can also increase your average order value by sending email notifications to customers when new value-added products are available. This is a great way to create a sense of urgency and encourage customers to buy now.

Read More: CSA Box Software: Everything Farm Owners Need To Know

Conclusion

Adding value-added products is a great way to increase your average order value. Not only do these products typically sell for a higher price than their unprocessed counterparts, but they also often have a longer shelf life, which can lead to repeat sales. So if you're looking for ways to boost your bottom line, consider adding some value-added products to your farm's offerings. Your customers will be glad you did!


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admin | October 31, 2022

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