Many new growers wonder how much microgreens sell for and their potential profit potential. Although this depends on various factors, here are a few things you should keep in mind when pricing microgreens:
One of the primary factors determining success in microgreens farming is location; those growing their products in urban areas with high demand can charge higher premiums, but that does not preclude rural dwellers from making a good living from microgreens business – some of the greatest profits come from selling directly to restaurants.
Another consideration when considering crop production costs is how many varieties a grower decides to grow. Growing additional varieties may increase earnings per crop significantly. It is crucial that producers understand each variety’s production costs before determining the appropriate number of them to cultivate.
Price of microgreens depends heavily on their marketing channels of distribution. Farmers markets and word of mouth sales may generate enough sales for a fair wage to be earned, yet this approach is unsustainable for most growers. Therefore, to increase productivity while simultaneously building reputation in the marketplace it may be more feasible to target selling to restaurants early and get standing orders from chefs to buy certain quantities each week. This would enable more consistent production while simultaneously building your reputation in the marketplace.
Microgreens typically fetch $50-100 a pound in local restaurant markets due to the higher quality product available than in grocery stores and the chefs who want to support local growers when possible.
Microgreens farmers looking to maximize profits may benefit from using reusable packaging when selling to their customers, which reduces waste while providing branding opportunities and branding of the microgreens themselves. Many growers are beginning to create “variety packs”, wherein each weekly shipment contains multiple microgreen varieties from which customers may select one of.
Finally, it’s essential to keep in mind that overhead costs will always be present when running a business. These include income taxes, insurance premiums, workers compensation premiums and any benefits the grower might offer their workers. As part of start up costs it would also be wise to include the price of software such as SeedLeaf which has an impressive preloaded database of 43 different crops that helps new growers quickly identify pricing.
At the same time, it’s essential to recognize that as growers become more efficient, their time spent on each crop can drastically decrease as efficiency improves. For example, creating one tray of microgreens doesn’t necessarily take 100% more labor than producing an entire batch. This can significantly cut back the time required to turn a profit and ensure newcomers remain competitive in their markets – an invaluable benefit when just starting out and looking to make their first sale.