It's like driving a car that only has a front window and no side or rear windows. But any setback must be handled with incomplete knowledge. Those who market with an understanding of their cost of production can make decisions about what is an acceptable price, what price will cover certain critical costs, and what are the risks of not taking a price when it is offered. Using the analogy of the car, it provides front, side and rear windows so that the decision maker can make both offensive and defensive decisions. The marketing plan described here is intended, first, to cover as many of the costs of production as possible and, second, to maximize the price received for commodities produced.
Many farmers try to maximize price before they have implemented strategies to cover all costs.
While marketing in this manner is the prerogative of the farmer, it is not the approach recommended in this guide. The marketing plan discussed here focuses on relatively simple and available strategies that can be used to increase income and reduce risk. Develop a follow-through plan. Your cost of production Good producers can be good marketers because smart marketing is aided by a thorough understanding of the production process. By analyzing the production process, managers are able to estimate costs of production.