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Agricultural Marketing Resource Center

Market Access, Distribution, Pricing and Sales Forecasting

1. Access to Market Outlets:

  • Will the product/service be sold directly to consumers or directly to wholesalers/retailers?
  • Will an intermediary such as a broker, distributor or marketer be used?
  • Identify the potential intermediate and end buyers of the product/service and the associated marketing costs to access each.
  • Outline the product/service distribution system and the costs involved.
  • Describe any strategic marketing partners that will be used to gain access to key customers (for example, brokers, other manufacturers, distributors).
  • Specify commitments from customers or brokers. Are the commitments verbal or contractual?

2. Pricing Plan:

  • Explain how you set your selling price.
  • Why will customers pay this price?
  • How does your price compare to that of competitors? Why should it be different?
  • Will your pricing plan include selling on credit? What are the terms? Who will you extend credit to? How will you manage accounts receivable? How much will this cost you?

More information is available on Pricing. 

3. Sales Forecast:

  • Make a projection of sales or usage.
  • Carefully identify and assess the accuracy of the underlying assumptions in the sales projection.
  • Project sales under various assumptions (e.g., selling price, services provided, other).
  • Project alternative possible levels of sales (high, low, average).

More information is available on Forecasting.

 

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