9 Pricing Tactics Every Agricultural Entrepreneur Should Know To Sell Better

Pricing isn't just about putting a number on your product, it’s a strategy that can make or break your agricultural business. Whether you're selling farm produce, agro-inputs, machinery, or agricultural services, choosing the right pricing model can help you scale, compete, or dominate your niche.

Here are 9 powerful pricing strategies with practical examples to help you decide what works best for your agribusiness:

1. Competition-Based Pricing

Set your price based on what your competitors are charging.

Example: A maize miller surveys what nearby processors charge for a 50kg bag of maize flour and sets their price slightly lower to attract bulk buyers like schools or supermarkets.

Best for: Highly competitive markets where price is a major decision factor.

2. Cost-Plus Pricing

Calculate your production cost, then add a markup.

Example: A greenhouse farmer producing tomatoes calculates all costs (seeds, inputs, labor, packaging) to be $0.80/kg. They add a 25% margin and sell at $1.00/kg.

Best for: Simplicity and consistent profit margins.

3. Freemium Pricing

Offer a basic product for free, and charge for premium features.

Example: An agri-software firm offers farmers a free weather-tracking app but charges for access to advanced analytics, market price predictions, or crop disease alerts.

Best for: Digital agricultural services or farm advisory platforms.

4. Hourly Pricing

Charge based on time spent providing a service.

Example: An agronomist offers on-site farm consultations at $30/hour, helping farmers diagnose soil problems or improve yields.

Best for: Agricultural consultants, trainers, or machinery rental services.

5. Skimming Pricing

Start with a high price, then lower it over time.

Example: A company launching a new high-tech irrigation system sets a premium price initially to target large farms, then reduces it later to attract smallholder farmers.

Best for: New or innovative products with no direct competition (at first).

6. Penetration Pricing

Start with a low price to attract customers fast, then increase it.

Example: A fertilizer distributor offers deep discounts for the first season to get farmers to try their product. Once the farmers see results, prices are gradually adjusted upward.

Best for: Breaking into a crowded market or launching a new brand.

7. Premium Pricing

Price higher to reflect superior quality or brand prestige.

Example: An organic tea producer packages their product in eco-friendly materials and sells it at twice the regular price, targeting health-conscious, high-income urban consumers.

Best for: Niche markets or high-quality, branded agricultural products.

8. Project-Based Pricing

Charge a fixed fee for an entire project, not by hour or unit.

Example: A farm infrastructure company offers a $10,000 turnkey greenhouse installation package, covering design, materials, labor, and follow-up.

Best for: Long-term or customized agricultural services (e.g., irrigation, land development).

9. Value-Based Pricing

Price according to the value it delivers, not the cost.

Example: A company selling a drought-resistant seed variety prices it higher than regular seeds, because it helps farmers maintain yields even with water stress, saving potential crop losses.

Best for: Solutions with strong, measurable benefits to the customer.


Conclusion: Choose What Aligns With Your Goals

No one pricing strategy fits all. What works for a fertilizer startup may not suit a fruit exporter or livestock consultant. Smart agricultural firms mix and match pricing strategies depending on their product, market position, and business stage.

- Which strategy fits your agribusiness? Or are you already using more than one?

-Have you heard about the FeastsFarms App? After setting the right price for your agricultural product, use FeastsFarms App to reach as many buyers as possible

Agricultural Innovation

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