PRACTICALITIES OF COMPOST MARKETING AND SALES

After many years of compost marketing and market development, we have come to recognize a number of “truisms.” A leading one is that although compost is a great product and created from a “recycled” feedstock – and therefore is considered an environmentally “correct” product – most people who purchase compost do so because of what it can do. They want to know how “will it save or make me money, or give me better results in the field.”





Other truisms are related to compost’s unique nature. For example, a unique aspect (and advantage) of compost is that in many ways, it is what it is processed to be. To a large extent, compost can be processed so that it is appropriate for use as a soil amendment, turf topdressing, mulch, erosion control media, etc. It can be further refined into a growing media component or nutrient source, or blended to allow for its use in a variety of creative applications. Because of compost’s incredible versatility, the best application for a particular product – and thus the end users who can best use it – is determined by the characteristics it possesses. When marketing a particular compost product, sell to its strengths (characteristics) – the product can’t be everything to all people, and it is a sure recipe for problems to try to be.



Compost is also unique because its production is not based on the typical supply and demand curve. Compost production volumes have not grown because the green industry has been demanding a new soil amendment. Compost volumes have increased because waste management policies and environmental legislation have encouraged its production. These “false” market conditions have “forced” producers to market compost as a replacement for other existing products. To expand compost markets, however, it is important not only to replace existing products, but also to expand overall usage of soil amendments and to create new end use applications for compost.



MARKET PLANNING AND PRODUCT POSITIONING

Because many commercial-scale composting facilities – both publicly and privately owned – begin their lives as waste management operations, engineering, design, construction and budgeting aspects are often very extensive. Rarely, however, is that the case when it comes to the market development aspect of the composting “business.” This lack of planning can become a significant challenge for larger composting facilities where it is imperative that finished product be cycled out on an ongoing basis. The marketing plan is simply the blue print or guide to your sales and marketing program, providing tools to approach the market pragmatically and enabling staff to better understand the demographic nuances of the geographic target area. It should be modified as information and experience are gained and competitive forces change.



A core element of the marketing plan is product positioning. Positioning a product for distribution within an existing market takes both forethought and knowledge of the specific geographical market area, as well as the product(s). Market positioning considerations include:



Geography: Where will you geographically concentrate your marketing efforts, and in how large an area?



Market Segments: What market segments will you concentrate your sales efforts on (e. g., nurseries, landscapers, etc.)?



Product/Application: What are the typical characteristics of your product, and what specific type of product will you actually manufacture (e. g., soil amendment, mulch, etc.) in order to meet the requirements of your end users?



Market research is used to make these positioning decisions, as is prior knowledge of the industry. Other internal and external factors also influence how to position a product for sale, including: Competition; Product or feedstock characteristics; Sales price; Transportation; Infrastructure (equipment, pad space, etc.); and Technical expertise.



COMPOST SALES