Image Credit: Max Pixel
Agriculture is a tough industry to survive in and it takes commitment and experience to know how best to maximize your profits and survive year to year. While other industries might rely on technological advancements and fancy marketing strategies, you need to rely on your business nous and your ability to adapt.
Reducing your costs is always the best way to increase your profits and finding the best methods is vital. You need to ensure that you are always paying the smallest amount for the most value, otherwise your risk lowering the value of your own produce.
To reduce costs and maximize profits, here are 3 rules to live by:
Always Opt for Efficiency Not Price
When you compare the price of things, it can be tempting to assume that the cheapest is always best. However, this is too simplistic for the agricultural sector. Rather than the cheapest, you need to be looking for the most efficient so that you can maximize your profits and make your land work faster and harder.
One example is deciding where to get your grain from. You might choose the cheapest but then find that you have to wait a few weeks before it arrives because it is coming from farther afield. Instead, you should be looking at a company like MKC Cooperative which offers speed and convenience as well as advice on how you can maximize your revenue.
Look for Alternatives
Ensuring that your land is in peak condition is a challenge for every farmer, but there are some cheap methods that can improve your land, and could even give you a chance to make some money too. One option is to allow the spread of waste on your land. This can be a risky option and you should always have the waste tested before you allow it to be spread, but as waste can be difficult for some industries to get rid of, you might be in for a quick buck.
There are some landspreading laws you need to follow to ensure that your actions are legal, but once you have a good relationship with a local waste producer, you could set up a regular income. This is a great way to achieve mutual benefit in your community as well as do your bit to reduce the amount of waste being burned or going to landfill.
Bargain, Negotiate and Barter
As a business owner, you may only be interested in the bottom line, but you shouldn’t only focus on exchanges for money. Bartering is as old as business and you should consider it as an option. The basic premise of bartering is that two people (or businesses) each have something to offer the other and then haggle to reach a compromise about what will be exchanged for what. This is a great way to achieve your goals, even when money is tight. Plus, if you become known for making fair deals, you may attract other businesses who want to work together and create a community.