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Thread: Farm and retail

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    Default Farm and retail

    Does anyone out there run a farm/retail operation?
    I kinda got burned a few years ago when I filed all of my taxes against a form "F".
    I have a farm and will be selling supplies and equipment in the farm store along with food products from the farm.
    I am thinking I need to file them both separately, one as the retail operation and the other as a farm.
    Opinions?

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    Discount Prodigy Array Owen's Avatar
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    Quote Originally Posted by HiveFive View Post
    Does anyone out there run a farm/retail operation?
    I kinda got burned a few years ago when I filed all of my taxes against a form "F".
    I have a farm and will be selling supplies and equipment in the farm store along with food products from the farm.
    I am thinking I need to file them both separately, one as the retail operation and the other as a farm.
    Opinions?
    Do it. Find someone with business experience and open up a shop. Look for a good retail space that's downtown and in a high-traffic area. I have a couple farms in my area that have done that. I currently manage some of the assets of one of them, so feel free to message me if you have any questions.

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    Thanks Owen, I thought so.
    This isn't my first rodeo, I've had two service businesses in the past with some retail. This is going to be my first brick and mortar retail store though. I'll have a very limited primarily customer base however. I'll be selling bees and beekeeping supplies. My nearest competition is fifty miles away. Most of my potential customers have to drive past me to get to him.
    I have just built a new building here on the property to house the store.

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    Discount Prodigy Array Owen's Avatar
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    Quote Originally Posted by HiveFive View Post
    Thanks Owen, I thought so.
    This isn't my first rodeo, I've had two service businesses in the past with some retail. This is going to be my first brick and mortar retail store though. I'll have a very limited primarily customer base however. I'll be selling bees and beekeeping supplies. My nearest competition is fifty miles away. Most of my potential customers have to drive past me to get to him.
    I have just built a new building here on the property to house the store.
    If you're in a good area, go ahead. I don't know where you live, so I'm not sure how the bee market is there, but a bee store where I live (maine) wouldn't do too well. Are you sure something like that would be profitable in your area and is there a legit market?

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    Owen,
    This is what I came up with in my market research.
    I live in a rural area about 50 miles NE of Richmond VA. There are two local bee clubs that service our area. One club is 45 miles to our north and the other is 30 miles to our east. Each one of the clubs have about 50 to 75 members. Every year for the past several years the clubs have each had 25 to 30 folks go through their beginner training. Even though many of those folks do not continue traveling to the meetings (due to the time and expense of traveling) they do begin keeping bees on their own. These folks need equipment and bees. At some point I will be able to get far enough ahead to sell the bees I produce, about 90% profit on that. Unfiltered, raw, chemical free honey sells for $12.00 per pound, each hive produces about 60 pounds. I am sold out already this year and I didn't really advertise having any. The mark-up on the equipment is about 40-50% and is very seasonal but most folks don't like to or can't build their own. The last part of this market is extracting honey for others. Honey extraction equipment is rather expensive so rather than buy it and only extract my own I will be extracting for others at a fee. currently the clubs have some equipment and offer it for use one Saturday in late June. To use the equipment you must carry your full hives to a designated area and wait in line till its your turn. There is no guarantee you'll get your own honey back without your neighbors stuff in it.
    So my product lines will be honey, bees, bee equipment, honey extracting, and misc. supplies for packaging.
    I realize my store will primarily be a "destination" rather than a place that will draw foot traffic. The store will be on the farm so I see my biggest issue will be telling folks "we are here"! Our farm is about five miles off a major rural highway (RT17 and 360) outside of a cute little tourist trap town. I believe the honey will be the biggest draw for travelers and the equipment for the locals. My marketing will be extremely important. We have local wineries that do pretty good here with their shops at the vineyards.
    All in all this is going to be a retirement gig and seasonal, when the bees go to sleep in November thru February I'll be putting my feet up.
    Like most beekeepers will tell you, the only way to make a small fortune in beekeeping is to start out with a large one.... that is why I am adding supplies and extraction to the mix...
    Last edited by HiveFive; 10-10-2017 at 07:31 PM.

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    Quote Originally Posted by HiveFive View Post
    Owen,
    This is what I came up with in my market research.
    I live in a rural area about 50 miles NE of Richmond VA. There are two local bee clubs that service our area. One club is 45 miles to our north and the other is 30 miles to our east. Each one of the clubs have about 50 to 75 members. Every year for the past several years the clubs have each had 25 to 30 folks go through their beginner training. Even though many of those folks do not continue traveling to the meetings (due to the time and expense of traveling) they do begin keeping bees on their own. These folks need equipment and bees. At some point I will be able to get far enough ahead to sell the bees I produce, about 90% profit on that. Unfiltered, raw, chemical free honey sells for $12.00 per pound, each hive produces about 60 pounds. I am sold out already this year and I didn't really advertise having any. The mark-up on the equipment is about 40-50% and is very seasonal but most folks don't like to or can't build their own. The last part of this market is extracting honey for others. Honey extraction equipment is rather expensive so rather than buy it and only extract my own I will be extracting for others at a fee. currently the clubs have some equipment and offer it for use one Saturday in late June. To use the equipment you must carry your full hives to a designated area and wait in line till its your turn. There is no guarantee you'll get your own honey back without your neighbors stuff in it.
    So my product lines will be honey, bees, bee equipment, honey extracting, and misc. supplies for packaging.
    I realize my store will primarily be a "destination" rather than a place that will draw foot traffic. The store will be on the farm so I see my biggest issue will be telling folks "we are here"! Our farm is about five miles off a major rural highway (RT17 and 360) outside of a cute little tourist trap town. I believe the honey will be the biggest draw for travelers and the equipment for the locals. My marketing will be extremely important. We have local wineries that do pretty good here with their shops at the vineyards.
    All in all this is going to be a retirement gig and seasonal, when the bees go to sleep in November thru February I'll be putting my feet up.
    Like most beekeepers will tell you, the only way to make a small fortune in beekeeping is to start out with a large one.... that is why I am adding supplies and extraction to the mix...
    If you believe it's achievable, do it. If you have the money, do it. If you know what you're doing, do it.

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