Sales Channel Profit Margin Analysis Spreadsheet

My core mission at Small Farm Central / Harvie is, “make local farmers more profitable.”

As a local farm, you have many different sales channels available to you. For example, as some farms saw CSA sales decline, they shifted their sales to “small-scale wholesale” like aggregators or restaurant sales.

Or you may be trying to decide between running a traditional CSA and transitioning to Harvie — how will the extra costs and benefits effect profit margins? This spreadsheet helps me to be confident that I can help farmers be more profitable even as they pay us a higher fee than before.

Or perhaps you are considering moving to larger scale wholesale from direct-to-consumer channels: how will this change effect profit margins?

Each sales channel has a different cost and profitability profile and I realized that I could put this all on one spreadsheet so I created this “Sales Channel Analysis Worksheet” that is freely available on Google Sheets:
https://docs.google.com/spreadsheets/d/1RUIlbKG9ESC8VCauOhR4HkqDsuDa2BHsTcd5cxcHkj0/edit#gid=0

I have gotten feedback from several growers on this, but I would love more feedback and to keep improving this spreadsheet.

I have added comments to many of the cells to describe the thinking behind each assumption. Feel free to add your own comments and reply to mine! I think this can become an excellent resource for our community going forward.

To put in your own numbers, go to:
File > Make a Copy

I would love to see your work so share back with me!

The most interesting lines for me are row 38 with “Profit margin” and then extrapolating from that, ” Gross sales needed for farmer salary” (row 40). This data point describes, at a given profit margin, the scale of sales you need to drive through a sales channel to provide a fair farmer salary. However, “farmer salary” may also be paid through other line items like labor percentage (rows 3-6) or admin cost percentage (row 13), so that should be taken into account as well.

This spreadsheet does not tell the whole story of farm profitability of course and each farm will have different numbers, but I think it is a useful of making decisions and planning the long-term future of your operation.