We think a lot about credit cards here at Small Farm Central because we help farmers take online orders for CSAs, buying clubs, and everything in between. We've written about credit cards a lot on the blog here, here, & here.
One approach that is popular with our CSAs is charging customers more to pay with credit cards versus paying by check or cash. This covers the bank fees for credit card transactions that can run as high as 3% or more of each transaction. This can make a lot of sense for a CSA share because it is such a large ticket item. However, until this point, charging extra for credit card sales was against the contract each merchant signs with Visa and Mastercard. This has changed:
The New York Times reports:
Under the credit-card settlement on Friday, worked out over months of negotiations, merchants can charge higher prices to consumers who decide to pay for their purchases with credit cards.
A customer, for example, who buys a $100 item with a credit card might be charged an additional $2.50. A judge still needs to approve the settlement.
Until now, the card companies banned merchants from adding such a surcharge, although gas stations and other retailers sometimes offered a discount for customers who paid in cash.
Kevin drum writes:
Until now, credit card companies used their monopoly power to prohibit this. Merchants could discount for cash, but their contracts with Visa and MasterCard flatly prohibited them from charging credit card customers more to cover the swipe fee — and card companies have been adamant about enforcing this prohibition. There's an obvious reason for this: they're afraid that if merchants are allowed to do this, people will use credit cards less. And if people use credit cards less, then banks and credit card companies make less money.
What's more, consumers and merchants get a lot of benefits from credit cards: consumers get convenience and merchants get guaranteed payment. No more bounced checks! Maybe a 2.5% fee is a reasonable price for those benefits.
Some merchants will almost certainly start charging more for credit card purchases, and after a period of experimentation we'll end up in a new equilibrium. What will it be? Perhaps consumers will start avoiding stores that charge for using credit cards, and those stores will lose enough business that they'll give up. Or maybe they'll gain enough cash business that everyone else will follow suit. Maybe merchants will end up charging higher prices for small items but routinely waive the fees for larger purchases. Maybe stores in competitive markets will swallow the fees while other stores don't. Or vice versa. Or maybe it will end up putting pressure on banks and card companies to lower swipe fees and then everything will revert to the status quo, but with no more ridiculous rewards programs. (This is my preferred outcome: keep the convenience of electronic payment, but with swipe fees basically covering the cost of running the network, not acting as a hidden profit center.)
So you can now legally charge extra for a customer paying with credit, a practice many CSAs have already implemented, but of course it is a trade-off. I'll save thinking about the balance of the trade-off for another post!
We have a new Small Farm Central template ready. This one was designed by our very own Shannon who you may have had the pleasure of interacting with if you are a current Small Farm Central customer. For most of our designs, we hire outside design firms so it was nice to do this one in-house.
We are calling it "Polaroid".
See below for a sample screenshot or visit the sample page at premium11.smallfarmcentral.com.
Let us know what you think!
The following poster was found in the bathroom of a local eating establishment:
Although the placement in the bathroom is an interesting touch, that is not why I think it is particularly creative. When Clarion River Organics printed these posters, they left a space for "pick up at" blank to be written in for each poster. So when I look at this poster, assuming I live in the neighborhood, I know exactly where I can pick up my share. This is really smart because many people will choose a CSA largely on the basis of pickup proximity.
With the wonders of mapping software on phones, they could take this the extra mile and put the distance from this location to the drop-off (ie 0.76 miles from here) in case it is not immediately obvious to the reader where Hampton Avenue is.
Try this with your posters and let me know how it works!
The National Summit on Community Supported Fisheries (CSF) was last week in Rye, New Hampshire. We've been working with a couple of CSFs over the years such as Off the Hook & Eastman's Fish with our Member Assembler service that works as well for fisheries as farmers.
Apparently Member Assembler was heavily mentioned because we've spent a lot of time talking with CSFs this week! It is inspiring that fisheries -- maybe one of the few industries with more challenges than agriculture -- are working off of the momentum that small-scale agriculture has created to find their customers and community.
It's Farmers Market time once again and many of you will be delivering your produce to different locations, both near and far. But sometimes the price of delivering to the most convenient spots for your customers is felt pretty hard at the gas pumps. So, we've added on a new option for E-Commerce which you can find under your Shipping configuration: Pickup Handling Fees.
Whatever pickup locations you've already created will show up here for you to set any surcharge for orders. Just enter the dollar amounts and save and the fee will be automatically added to the orders - both in your online store and, if you choose, in orders you create through the admin. You don't have to set a fee for each location. Say, for people picking up right at the farm, you can set it to $0. But for that one market on the other side of the state, a small surcharge will help defray your costs of trucking everything over there. This also may be a nice solution to justify serving locations where you have a lot of loyalty but not a lot of sales volume.
Being on the road this time of year is necessary, but can often feel like unproductive time away from your farm. If there are any other options you can think of ways we can help make it more profitable for you, please contact us with suggestions.
Small Farm Central and Penns Corner Farm Alliance are sponsoring a screening of "American Meat" to benefit PASA on Wednesday night. I know most of you are not in Pittsburgh, so you will not be able to join us. However, if you are, please come and join us at the Melwood Screening Room in Oakland at 7pm for a happy hour and then the movie.
Full details can be found on the Penns Corner blog
Here is the poster that was put together for the event:
As we make some changes to our office space here in Pittsburgh, we would like to get some large format photos of our subscriber farms printed to put on our walls. It's a good reminder day-in-and-day-out of the reach of our network and the people that we are working for.
Right now, we have strings of 4"x6" photos on the walls that look a bit like this:
However, there are some open walls right now and we are getting some new space that is just right for some large format images.
We need you to help us! Do you take great, high-resolution photos of your farm? (Any file directly from your digital camera will be high quality enough for us.) Are you willing to be featured on the walls of the Small Farm Central office? Please send over 2-3 of your best shots in the original format from your digital camera and we'll post a blog entry with the ones we chose to put on our walls.
Submit images to email@example.com. Thanks for helping us decorate!
We had the pleasure of helping out at Who Cooks For You Farm last week; it always feels good to get out of the office and remind ourselves of the hard work that our customers do every day. Special thanks to Chris & Aeros who allowed us to help out and feed us lunch!
Green onions harvested.
We hope your early season harvest work is going well! Here's to a great spring and summer for all of our farmers!
Have you seen our new and improved Pickup List tool for the Member Assembler? Among the new features:
This is a really interesting concept that I discovered on Seedstock:
"An expert Farmscape farmer will visit your urban farm weekly to manage all aspects of your vegetable cultivation. We make quarterly visits to prune and maintain home orchards. Our weekly farming service includes plants, successive plantings, pest and disease control, crop rotation, and irrigation maintenance. All of our methods are organic and food safe. Having a garden does not have to be time consuming or difficult anymore - Know your farmer with Farmscape.
My understanding is that, if you have a backyard in southern California, Farmscape will come out an design an "urban farm" for your backyard, install it, and then manage it on a weekly basis. This allows the lot owner enjoys having a backyard garden that they don't have to maintain -- what a great concept for those that have money to spend on landscaping and want to have a beautiful, maintained garden. I guess it is sort of like a CSA grown in your backyard!
The entrepreneurial spirit of the local food economy continues to impress me.