Customer relations

[kfarm_EC_IL]

I've had good growth in our hay business this year. However as I reflect over the year I'm still searching for ways to handle the vast variety of customers.

One example is payment. Have one baling customer who hasn't paid and is in the feed business. Don't see him paying. Another always wanting us to hold checks. how do you deal with payment but not run off customers? I don't care for pushy salesmen and not wanting payment for the pto is put in gear. I would like to get paid.

How about every buyer wants a different type of bale. heavy, lite, long, short, pretty, ugly, etc. What do you shoot for A particular feed quality or type of customer?

Also more an more customers are not rural. Call at all times of the day and night. Got a call in church...why I had the cell phone with me I don't know. Calls on the combine etc. I like the idea on this forum about having set Saturday hours and may try that.

How do you guys go about bringing in new business? Advertise? I know word of mouth is the best and has worked for us so far. But the ads seem to work, maybe to good.

Thanks for the comments, I have a few more things that maybe you maybe will hit with your responses.

[swmnhay]

I NEED TO BE PAID FOR LAST CUTTING BEFORE I CAN BALE THE NEXT.If they need it baled they will come up with the money.If they can't you will just be owed more money.Have one guy thats always hard to get money from that I went to doing on shares.(I'm actually getting more $ for my work)

[BCFENCE]

Ive got to honest, You cant do it for free, If he doesnt pay the first time dont go back make him pay for the first before you bring any more, Dont keep supporting a money losing cause, you could sale to someone for half price before you sale to a cheap skate, As far as advertisment a good product and good PR will keep you in business, Just my two cents. THOMAS

[kfarm_EC_IL]

I agree. What do you use as good PR?

[BCFENCE]

I allways try to be on time and deliver what i say is there , If i have to take a customer 10 or 20 bales to get by for free delivery to get a good customer in the long run and most of the time it pays off well. Just take that extra step and go out of your way, people really appreciate it and also pays big dividens in the long run . Word of mouth is your best advertisment also , just be honest and sale a product you would want to buy and youll be fine.
THOMAS

[kfarm_EC_IL]

Exactly, If I wouldn't feed it, I shouldn't expect anyone else to buy it either. I have been using local free deilevery. It is to a small race track that i'm hoping to get into.

How do you deal with repeat customers and holding hay? I haven't so far but maybe I should. I seem to get a lot of pricing calls...Well can you hold that for me until I pick it up. Which is only if they can't find it cheap elsewhere. Where does a person draw the line? We are still growing this part of the farm.
Mark

[Wrenchbender]

I'll second what the others have said.

Represent your hay to the best of your ability. Getting to know your customers takes some time. You can't always make perfect hay, it will get rained on once and a while. I have found there is a customer for all types of hay. Some want only top quality and will pay for it, others only care about price, some will feed just about anything. Just be honest and ask them what they are looking for.

Treating people right will give you a good reputation. Last year's short crop and high price proved that for me. I had people calling that had hay they thought was coming only too find out it had been sold to someone else. I told my regulars that I needed to raise the price because of the shortage but didn't hold them up. I told the new people that called I needed to wait and make sure I had enough for my regulars, then I would call them back. I gained a few new regulars that are good customers.

I've been lucky in not having much payment troubles. Only had to repossess hay one time, they wanted load the barn in the summer for a better price and then wanted to pay a little at a time. It got up in the winter and they still owed a good chunk. We showed up one day to take back what was left before it was all fed. They came up with the money, only had to bring about a pickup load home.

Just be fair and honest, treat people like you want to be treated and you'll get along OK. Good luck, WB!

[swmnhay]

I hold hay for regular customers all the time,deliver so much every couple weeks.I like it.Spreads out my work delivering and cash flow.As far as holding hay for someone that is just pricing if they don't call back in a couple weeks they probably won't.

[PHD]

My full time job is a collections officer at a bank; my advice firstly is to explain to the customer when payment is expected before you do the job. Secondly, if timely payment is not made ask for the payment-don't be bashful. (there must be a financial penalty to make them a believer.) And thirdly, if you think someone is trying to stick you, don't be afraid to engage the services of an attorney (depending on amount owed to you of course).
We have a custom operator in the valley I work who is owed probably 100k-does great timely work-has had loan pmt issues for three months because of. You simply can't allow somebody to ride the trade on you. You are not their financial institution or lender. In addition the more time you have exposed on your recieables means more inerest expense to you as well as more risk exposure to potential bankrupcies where you lose it all

[chetlenox]

kFarm,

Maybe I'm too new (2 years) and small of an operation (sell 1500-2000 bales/year as a part-time gig) to really have that good of advice, but you asked...

1) Payment - I'll be honest, I ask for cash or check up-front before I deliver or load hay onto somebodies trailer. My only exception is my half-dozen or so immediate neighbors who I've sold to several times, for them I'm happy to deliver and take payment whenever they get a chance. But those are folks that I'm friends with, have had dinner at their house, that sorta thing.

2) Type of hay - Oh, I just bale the standard 50-60 lb Coastal Bermuda bale, standard length. All my customers are horse folks that due plenty of hand-handling, so they all generally want the same bale (dense and big enough to get their money's worth, but not so big as to be unwieldy).

3) Advertising - I live on a county-road and put a sign out, that gets 50% of my customers. Another 30% from my craigslist postings. Probably 20% or so word-of-mouth, although that number seems to be growing.

4) General customer service - I really think it's important to give folks good customer service (friendly approach, open to coming at all reasonable hours, help load and unload). I live relatively close to an urban area, so folks around here seem to really value convenience. What I mean by that is that they want to call, confirm I'm there, and show up in 10 minutes with a trailer and have me help them load it. I also have several customers who only buy hay 5-10 bales at a time. I've been a bit surprised, but even when I offer discounts for picking hay up off the field after I bale (so I don't have to put it in my barn), I just don't get that many takers. But then they'll show up a week later and buy the same stuff for $1/bale more out of my barn. I think many folks want the convenience more than the discount. Maybe that will change a bit with the crummy economy.

I'll be honest, I don't mind the value folks put on customer service. Since I'm just learning the business myself, I've done a lot of reading on hay quality and regularly test my soil and hay (because if I didn't, I wouldn't have any idea what I was doing). When I discuss the numbers with folks, many simply glaze over a bit and say, "Sounds great, I'm sure it's good stuff." but don't seem to care too much. I'm happy to be friendly, help load, and be flexible on times. It seem to work OK. I price my hay to about what other folks around here are pricing and it seems to sell out pretty quick.

Anyway, that's my thoughts.

Chet.