How Yoder Way Farms Scaled Sales with Subscriptions and Streamlined Delivery
Lessons from a Commercial Dairy Farmer who successfully transitioned to Selling Direct
Lois and Jeremy Yoder knew that for the long-term viability of their Farm business, they would need to move away from selling through commodity markets, where prices are subject to market pressure, making profit margins unreliable. In a commoditized world, with minimal control over the cost of inputs, no control over prices and no actual customers, a Farmer’s shift to direct-sales, pricing control and loyal local customers can provide a pathway to de-risking their business, while enjoying consistent recurring revenue and long-term success.
Lois and Jeremy Yoder of Yoder Way Farms successfully transitioned their third-generation commercial dairy farm in central Pennsylvania to a direct-sales model for beef, pork, chicken and eggs. Having an online store and delivery options addresses the critical factor that convenience prevails when selling direct to consumers in an Amazon-era of shopping. By taking control of their business and selling direct, they figured out how to grow their Farm's customer base, ensure profitability, and minimize time on the road and in the office.
Finding the Vehicle for Growth: Subscriptions and Marketing
Initially, Lois and Jeremy struggled with how to market their new venture. Stumbling upon an ad for Barn2Door resonated with Lois, and she signed up, following their blog posts and podcasts for guidance. This connection was the vehicle that taught them how to market their products and dramatically increased their customer base. Specifically, Yoder Way Farms had not even considered subscriptions or deliveries until they heard a Barn2Door podcast about a farm using a herd-share model for steady cash flow and product delivery. This inspired Lois to implement her own successful Farmer's Choice Farm Box subscription; this offering has been wildly successful and helps the farm manage its inventory by moving various cuts of meat.
Convenience is King: Delivery Logistics and Fees
Yoder Way Farms offers a high degree of convenience to its customers. Instead of requiring customers to meet her, Lois asks that they leave a cooler out on the porch for their delivery, though she carries spare coolers for those who occasionally forget. Even in their rural area, customers see the value of this service and are willing to pay a delivery fee, with many also leaving a tip. The Farm also offers free delivery for orders over a $150 minimum, which encourages a higher average order value. This proves that customers will pay for the convenience of having local, quality food delivered to their home.
The Power of Focus: Optimizing Delivery Routes and Schedules
Initially, Yoder Way Farms delivered two days a week, covering a wider area. However, to save time and increase profitability, Lois and her husband made the strategic decision to discontinue one delivery day and focus their time and resources on a 40-mile radius in their local community. This consolidation allowed them to focus on Thursday deliveries, leaving the farm by 11:30 AM with a customer window of 12 PM to 3 PM, ensuring they were back home by 4 PM. This is a key lesson for Farmers: consolidating delivery efforts can save time needed for farm operations and ultimately prove more profitable.
Marketing and Automation: Consistency is Critical
One of the key lessons Lois learned is the importance of consistently marketing the fact that the Farm offers delivery. She recommends reminding customers often, such as through newsletters and social media posts on Mondays and Tuesdays, to place their order before the Wednesday noon cutoff for Thursday delivery. Crucially, she utilizes Barn2Door’s software to send automatic order reminders to existing customers on Wednesday mornings, which has successfully pulled in additional orders. Lois advises new farmers to avoid discouragement if growth is slow at first; delivery is an investment that will pay off as customers begin to share their positive experiences.
Looking Ahead: Scaling Through Efficiency and Partnerships
As their delivery stops grow, Lois and her husband are already considering future steps for efficiency. They've looked at the Routific <> Barn2Door integration, which automatically calculates the most efficient route and can save Farms a couple of hours per week on delivery. Furthermore, for farms offering a wide range of local products, it's essential to have a streamlined system. Barn2Door's features for product management ensure that Yoder Way Farms can list its core offerings (beef, pork, chicken, eggs, and local milk) in their online store and offer them for delivery, while strategically curating a variety of local partner products to increase cart size. Lois’s journey highlights that by leveraging convenience, consistent communication, and the right tools, Farmers can begin and grow a successful direct-to-consumer business.
The Independent Farmer's Advantage
Yoder Way Farms demonstrates that when independent farmers simplify business management, promote their brand, and sell online with the right tools, they can attract new customers and grow. Lois's journey confirms that selling direct, embracing subscriptions, and leveraging software to automate tasks is the path to building a growing base of loyal buyers and securing recurring revenue. The success of Yoder Way Farms highlights that with commitment and the right software, any farmer can start small and watch their direct-to-consumer business grow. At Barn2Door, nothing makes us happier than seeing (and being part of!) Farmers like Lois and Jeremy shift from the uncertainty and vulnerability of commodity markets, successfully pivot to a direct-sales model where they can drive decisions and positive outcomes for their Farm.
Barn2Door offers software for Independent Farmers to create and promote their brand, sell online and in-person, and save time managing their business. If you’re curious to learn more, watch this 5-minute video.