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CATER TO CUSTOMERS: MARKET VENDORS KEYS TO GROWTH
B2BCoverStory
MARKET OFFERS WHOLESOME PRODUCTS, PERSONALITY Vendors at PNC Second Street Market offer an engaging gathering place that keeps customers coming back
ABOVE LEFT: Scott Mason, co-owner of Caffeine, a coffee shop. BELOW LEFT: Gina Keucher, co-owner of Rahn’s Artisan Breads. ABOVE: Homer Rissinger, co-owner of Spice Rack and Bulk Foods. B2B Staff photos by M. Kelly Wilt
B2BCoverStory
By Sarah Hibner | B2B Contributing Writer
O
n any given Saturday, the PNC Second Street Market is buzzing with activity. Live music and the sound of friendly conversations enrich the eclectic atmosphere. The open-air concept is an old-time tradition harkening back to a simpler time when smartphones didn’t distract, calendars weren’t overbooked, and convenience was an afterthought to locally made, quality products. Located at the intersection of Second and Webster streets in an old B&O Railroad building, the market is a community gathering place. During the past 10 years in its current location near downtown, the market, which is part of Five Rivers MetroParks, has served as a space for people to come together. Its vendors make their livelihood fulfilling their passions. “Markets are the hot thing,” says Adam Schroeder, president of the Farmers’ Market Management Network, an Ohio organization devoted to assisting vendors. “Every city wants a farmer’s market.” Schroeder said that culturally there is a premium on fresh, local food. Restaurants and grocery stores increasingly are carrying food items produced locally, which greatly benefits farmer’s market vendors. From a consumer perspective, Schroeder said, the benefits range from the relationship consumers develop with sellers to the improved taste and quality of the goods. “People want to talk to the person who grew their food.” DaytonB2B talked to some long-term vendors about the secrets to staying competitive in a sometimes uncertain economic environment. Their customer-focused tips easily can translate into success for any small business. Many long-standing vendors have weathered the eco-
28 DaytonB2B January 2012
B2B Staff photo by M. Kelly Wilt
B2BCoverStory
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nomic ups and downs of the last decade at the PNC Second Street Market. Working nontraditional hours (the market is open Thursday-Saturday) in niche consumer goods categories, their businesses have grown — even thrived. While many businesses in the Dayton area struggled, these market vendors managed to stay on top of their game with friendly customer service, strong inventory and pricing management, and a commitment to quality. Homer Rissinger attributes overcoming economic climate changes to pricing his goods right and giving great customer service. “You have to know your product and respect your customers,” he said. With wife Janet, Rissinger owns Spice Rack and Bulk Foods, offering a wide variety of uniquely packaged spices, baking ingredients and snack foods. They’ve had their location at the market since 2001. It’s an extension of a storefront in West Milton. Keeping customers coming back week after week, even when it might be more convenient for them to stop at a big-box grocery store, is key to keeping market shops going. Rissinger attributes his repeat business with making sure customers feel they truly are cared for in his shop. “We make time to develop friendships with our customers,” he said. Customers count on him to offer a great price and friendly service. Similarly, Rahn Keucher of Rahn’s Artisan Breads, a market favorite since 2003, engages with customers forming a bond that keeps them loyal to his assortment of baked goods. “Word-of-mouth is really our only marketing tool,” he said. The business also uses Facebook as a touch-point with customers who “like” the page. Keucher said he believes hard work and a consistently high quality product are important to his bakery’s success. His products are baked fresh daily with no preservatives. Keucher’s wife, Gina, and sons are involved in operations. “In this day and age, it’s rare to have a place that is owner-operated,” he said. A slightly different business model, Caffeine, a coffee shop, is owned and managed by a team — Robert P. SantaBarbara Jr. and Scott Mason. SantaBarbara Jr. and Mason purchased Caffeine less than two years ago, but the shop has been a mainstay at the
ADVICE FOR SMALL BUSINESS SUCCESS • Get personal — connect with your customers farmer’s market style.
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• Know customers by name. It’s been said that nothing is sweeter to a person than the sound of his or her own name. Like Robert SantaBarbara and Scott Mason, memorize your customers’ names and then use them in conversation with them.
When Location Really Matters, we can find your Perfect Space
• Take a special interest. Homer Rissinger takes the time to learn if his customers have a special dietary need and assists them in selecting foods to address it. Do the same with your customers by finding out what their unique needs are and how your business can be a solution.
Ric Moody
Broker/Auctioneer
• Treat customers like family. Create a welcoming atmosphere where your customers can relax and enjoy their experience with your business like the Keucher family does for patrons waiting in line for their breads.
market since 2001. SantaBarbara and Mason believe in a personal touch and know many of their customers by name, including children. They’re also passionate about quality, even as wholesale prices are increasing. They’re company mantra: “This is a very trying time for people. Inflation is rampant at the wholesale level so you need to be constantly re-evaluating your suppliers to help hold the costs down. Lowering the quality of your product is not the way to go.” Making wise inventory choices is something Rissinger also pays close attention to. He says staying ahead of the wave by keeping product stocked has helped his business grow. The economic climate is uncertain and continues to challenge small businesses to
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B2BCoverStory “Markets are the hot thing. Every city wants a farmer’s market.” Adam Schroeser, president of the Farmers’ Market Management Network
balance price and quality while maintaining a solid inventory position. On a national level, Schroeder says consumers are realizing products at farmers markets are not much more expensive than those at a supermarket. At markets, consumers get the added benefit of learning to prepare the food by talking with the producers. They also enjoy the one-on-one experience that is often lacking from shopping at a traditional grocery store, he said. “Consumers come back to the market week after week to chat with the vendors on their experience and experimenting cooking with unusual produce bought from them,” Schroeder said. Even with the best business practices, the success of market vendors keeps coming back to the relationships they have with their customer base and the passion they have for their products. The engagement that consumers have with the vendors is part of the “market experience,” as SantaBarbara and Mason call it. Keucher agreed. He said many of his loyal patrons have watched his boys grow up throughout the years and they have developed a meaningful bond with consumers. “They genuinely care about us and our family,” he said. Looking to the future, SantaBarbara and Mason are confident in their business’ sustainability.
32 DaytonB2B January 2012
“We see a vibrant future which will include an expansion of product offerings to the public.” Schroeder agreed that farmers markets like Second Street Market have a bright future. “More towns are wanting and embracing them. We see a lot of potential for positive growth,” he said.
The U.S. Department of Agriculture reports in their 2011 National Farmers’ Market directory that the number of markets in Ohio is up 31 percent yearover-year. There are 278 reported markets in Ohio. The growth experienced between 2010 and 2011 outpaces national growth, which was up 17 percent year-over-year. On the USDA’s top 10 list of states’ farmer’s market growth, Ohio is ranked 9th among all states. There are 7,175 reported farmer’s markets nationally, up from 6,132 in 2010. SOURCE: U.S. Department of Agriculture