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| How Should I Price My Fresh Herbs? |
Answered by: Conrad Richter
Question from: Jeanette Oberle
Posted on: April 7, 2001
Hi, my name is Jeanette and my company name is Organic Herbal Gardens out of Monticello, Indiana.
I am a new grower of fresh culinary herbs and I need some advise on how to price my herbs for sale. I have some local restaurants that said they would purchase my herbs when they are ready and they would like to buy them by the pound. Originally I planned on selling them by the packet (approx 2 1/2 oz. to 3 oz) at $1.45 per packet, but the demand seems to be by the pound. What would be a fair and reasonable price by the pound?
The wholesale prices of fresh herbs are tracked by both the USDA in the United States and Agriculture Canada in Canada. Current and historical prices can be found on the Richters website in the "Richters InfoCentre" section under the link, "Selected Web Resources for Commercial Growers."
Traditionally, fresh herbs are priced by the bunch, not by weight, and the prices tracked by the USDA and Agriculture Canada are by the bunch. You will need to estimate the equivalent weight of a bunch to get an idea what the per pound prices are.
If you are certified organic, you can expect to get a premium of at least 10-20%.
With this as a basis for your prices, you can also add a premium for the service of delivering the product fresh from your gardens. Most of the product at wholesale produce terminals is at least a day old, so if you can provide a fresher product, you have an advantage on quality which high-end restaurants will pay extra for.