The Whole Story- Understanding Wholesale

A lot goes into Cabbige’s price recommendation for wholesale channels, including expected yield, actual harvests, sell-through rates (the ratio of sales volume to harvest volume), and the wholesale baseline price when the account was set-up.

25% of farms using Cabbige indicated noted a wholesale buyer in their Channels, and about 33% of the unique varieties in Cabbige were entered with a wholesale baseline price.

On average, the wholesale baseline prices are 68% of the retail price, meaning farmers are charging wholesale buyers 68% of what they would charge in consumer channels. The full range that we’re seeing is 50-100% - in some cases farmers are cutting their retail prices in half, in others, they aren’t discounting the crops at all, but a discount of 32% or so seems common. This is a healthy margin for farmers to keep, but we make that statement with a number of caveats that individual farmers need to keep in mind when determining wholesale prices for themselves.

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