The Rural Voice, 2006-05, Page 31There are ways of getting more
for the same apple, Morton said. Poor
quality apples will go for juice at five
cents a pound. Good apples bring the
farmer 12 cents through regular
channels. A very good marketer can
get 14 cents a pound. If the farmer
sells directly to the customer,
however, he can maybe get $2 a
pound.
Then there's the Scotia Gold apple
project in which pre -sliced apples are
vacuum-packed for school snacks
and bring 10 to 20 times the value of
the apple.
"You have to know how you can
supply what customers don't know
they could enjoy," Morton said.
The value of getting more for
your product is demonstrated
by a comparison between
cutting your costs to try and make a
better margin on your products or
raising prices. If you currently
product 100 units of your product at
$2 each and your expenses are $1.90
each, you make a profit of $10. If
you can increase your price by five
per cent and hold the costs the same.
you suddenly make a profit of $20 —
twice the profit for the same work. If
you can raise the price and cut your
costs by five per cent, suddenly you
are making a profit of $30. or three
times the original profit.
Once you start looking for value -
adding opportunities they tend to
multiply, Morton said. It then
becomes necessary to evaluate the
opportunity to see if it is viable.
Say you have an idea to grow
carrots. You need to ask yourself if
you have the skills to grow quality
carrots, and where can you get the
knowledge you'll require.
Do you have the resources
necessary — such as the land base?
Do you have access to the necessary
financing? Can you be competitive in
the marketplace at a profitable price?
How long are you likely to remain
competitive?
Even if you find something
different, he said, it may not be long
before others copy you and your
"alternative" becomes a commodity
just like the others.
Is there is a market demand for
carrots and is it a growing or
shrinking market'?
What are you market options? Do
you choose the wholesale channel
iJr1t�cJcPcJ�cPrJrJ�rJ�rJrJc fc fr f sr frJiJrJ�rJ�r Pr Pc..n Jc...�3 LP O
FP
i T.S. Fabrication
RR #1 Walton. ON NOK IZO C5
S Manufacturers & Disrribuwrs of Drag Hose Systems. Injectors. Rotary Distributor,
Manure Spreaders & Tankers. Dump Trailers, Post Pounders. Log Splitters
5 BOMFORD grass & brush cutting equipment tref RUNNING manure spreaders
dump trailers 5
jiii II,Rc% A manure spreaders
3 ag axels, suspension & steering kitsatissitiosi drag hose systems. rotary
jeja ie$' 'x manure tankers & injectors. trailers distributors
phone: 1-519-887-9378 toll free: 1.800-265-9682
fax I -S19-887-9011 cell: 1-519-440-6812
tsfab@bellnet.ca $,
t7PrlrJ acPcPrJcPlr�cPcPcPcPcPc(srlcPcPcPcPcPcPrlcPrJ�cPr�rJrJrJrJrJrJrJr�rlcPrJrJ�cPJi PcPJ arJcPrJ�cPr�rJrJrJrJcPcYCI
THERE IS A
DINOSAUR
IN YOUR BASEMENT.
You thought dinosaurs were extinct? Actually, millions of them are alive today In the form
of outdated fossil -fuel furnaces. Increasingly costly to own, these dinosaurs gobble
up expensive natural gas, fuel oil or propane—and contribute to global warming.
WaterFurnace is a better way. Our geothermal technology uses the earth's free and
renewable energy to reduce your annual utility bill up to 60%. It's an investment in your
home with a return as high as 500%' A WaterFurnace system is the environmental
equivalent of planting one acre of trees or removing two cars from the road.
WaterFurnace is better for you and the environment.
The Nature of Innovation is making things better.
Cliff's
Plumbing & Heating
Lucknow 528-3913 1-800-449-CLIF
waterfurnaceco,nMInossur 1 (800) GEO-SAVE
•Depeuamy on your home s sire, the c.v:wte end rhe bpe u:1 cos: of the e, sten: .ou ,•'0030
MAY 2006 27