Alain Guillot

Life, Leadership, and Money Matters

How to Stop Bleeding Profit Through “Little” Farm Purchases

How to Stop Bleeding Profit Through “Little” Farm Purchases

Well, it makes total sense you want your agricultural business to be profitable, all businesses need ot be profitable in order to thrive in the first place here. But when it comes to farming at least, well, there’s a very specific kind of frustration that hits when the season’s moving along, the farm is busy, things are getting done, and then the money still feels tight, just very tight. Well, not stress-inducing “everything is on fire and in utter shambles” sort of not comfortable. 

And it usually isn’t because of some massive, like it’s not even giant mistakes. It’s because of the little purchases that pile up, little by little. Well, it’s like that for any business, but farming seems to have it really bad here. 

Those “Quick Run” aren’t Actually Quick

Okay, so many farms have this pattern where a quick run happens because something is missing, something is low, or something broke at the worst possible time. It starts reasonably. Then it becomes routine. Then it becomes normal to lose time and money to it. You see the problem with all of this here? So, it’s just going to help a lot to just write down all these unplanned purchases that you or your team had to go out and get. Chances are, there’s some sort of pattern to where you can prevent all of this from constantly happening. 

Set Preferred Suppliers So Purchases Stop Being Purely Reactive

Which, in hindsight, might sound painfully obvious here. Usually, this only happens to smaller farms, like the ones that are just starting out or have a very small customer base (like the ones that tend to serve only locals, for example). Now it can be understandable to want to avoid picking a supplier if you’re shopping around or don’t want to exclude yourself due to loyalty sake, that all makes sense here. 

But it can help to find a supplier you can trust the most for parts, tools, safety gear, agronomy support, and seed products for farmers, all of whom benefit from having a default option already chosen. Overall, it saves time, it reduces panic buying, and it makes costs more predictable, which matters a lot.

Duplicate Buying is Super Common

Well, this one is so common it almost feels like part of farming culture, take that as a jab if you will. But if something is needed, nobody can find it, and somebody buys it again. Yep, they go out, using their fuel in their vehicle, which costs money, maybe send an employee out, which costs money, and buy said part, which they already have, but now have more of, which costs money. 

You see, lots and lots of money was spent here that didn’t have to be in the first place. Then the original magically appears later, usually in an obvious spot that was looked at three times already, so how that happened, well, hard to say. A lot of businesses in general have a “home base” system, like it’s one shelf, one bin, one cabinet, whatever makes sense, but common supplies need a consistent place. 


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