Farmers Market Federation of
ESTIMATING THE ECONOMIC IMPACT OF
MARCH 4, 2011
Estimating the economic impact of a Market in the
community is an inexact science at best.
Vendors, by nature, are reluctant to release sales
The total impact of the Market does not stop at the
market gate but extends into the community in the
form of increased traffic and sales at adjacent
businesses, increase in property values and
improvements in livability ratings.
Also the multiplier effect resulting from the dollars
circulating in the local community must be considered.
In 1996, Nutter and Associates put together a
master plan for the Rochester Public Market. Part
of this study included an estimation of total sales
Interviews with vendors and customers
Sales at comparable retail outlets
Information supplied by wholesalers and
businesses on the market
Police estimates of attendance
They estimated the total Market retail sales at
around $8,000,000 and the sales of the
wholesale outlets at the Market at $30,000,000.
In the fall of 2010 a group of students from the
University of Rochester utilizing a tool
developed by the University of Iowa, executed
another study of the Market’s economic impact
as well as the effectiveness of our marketing
efforts and some of their suggestions for
What follows is the presentation that the
What does the Rochester
Public Market mean to
DE CE MBE R 9 , 2 0 1 0
LO CAL AND G LO BAL M A R K E T
RE S E ARCH CLAS S
DE PARTME NT O F ANTHRO P O L O G Y
UNI V E RS I TY O F RO CH E S T E R
• To assess the impact of the RPM on the local economy.
• To understand the value of the RPM for shoppers, vendors,
• To identify marketing messages and venues for reaching new
What we did:
o 48 shoppers
o 13 vendors
o 6 business owners
• Conducted an online survey with 565 people
Measuring Impact of the RPM
on the Local Economy
To measure the impact of the RPM on the local economy:
1. W E E S T I M AT E D S P E N D I N G A N D S A L E S B A S E D O N
I N F O R M AT I O N O B TA I N E D F R O M C U S T O M E R S A N D
VENDORS DURING OUR INTERVIEWS.
2. W E M U LT I P L I E D T H E D O L L A R A M O U N T S F O R
CUSTOMER SPENDING AND VENDOR SALES BY THE
NUMBER OF CUSTOMERS AND VENDORS USING
FIGURES SUPPLIED BY THE RPM.
3. FOLLOWING THE MODEL USED IN A STUDY OF
I O WA FA R M E R S M A R K E T S , W E E S T I M AT E D T H E
T O TA L E F F E C T S O F R P M A C T I V I T Y O N T H E L O C A L
R O C H E S T E R E C O N O M Y.
According to shoppers:
$393 average annual spending, or $7.75 per week.
$7.75 X 2,043,000 customer attendance =
Estimated Total Customer Spending
P R O B L E M AT I C I S S U E I N C A L C U L AT I N G C U S T O M E R S P E N D I N G : T H E
2+ MILLION FIGURE FOR NUMBER OF CUSTOMERS REFLECTS
AT T E N D A N C E B Y D AY ( T U E S D AY, T H U R S D AY, S AT U R D AY, S P E C I A L
E V E N T S ) , N O T S E PA R AT E I N D I V I D U A L S H O P P E R S . T H E R E M AY B E
S O M E O V E R L A P.
Number of Stall Estimated Annual
Licenses / Month Sales / Vendor
January-March 180 $52,000.00, $52,000.00, $130,000.00,
April 210 $52,000.00, $250,000.00, $2,990.00,
May-September 290 $28,000.00, $58,000.00, $39,000.00,
October-December 210 $52,000.00, $250,000.00.
Average = ~240 X $87,817.27
E S T I M AT E D T O TA L A N N U A L V E N D O R S A L E S
( T H E AV E R A G E WA S C A L C U L AT E D B Y FA C T O R I N G I N T H E 11
V E N D O R S T H AT
D I D G I V E S A L E S I N F O R M AT I O N O U T O F 1 3 V E N D O R S
Customer vs. vendor estimates
RECAP ON RPM ANNUAL GROSS
CUSTOMER SPENDING = $15,833,250
Vendor sales = $21,076,080
Measuring total effects
• Models of economic impact include not only direct effects (sales as
estimated above) but also indirect and induced effects. This provides
total effects on the local economy.
• Indirect effects in the farming industry involve purchases of seed,
fertilizer and other items that are part of producing crops.
• Induced effects reflect spending from earnings (profit) by farmers
and businesses from whom they buy the items for production.
• Based on the Iowa study, a multiplier of 1.58 applied to the estimate of
gross sales provides a measure for total effects.
Total effects of RPM
V E N D O R E S T I M AT E Customer estimate
DIRECT SALES OF Direct sales of $15,833,250
$21,076,080 x 1.58 =
X 1.58 =
$25,016,535 total effects
$33,300,206 total effects of RPM on local economy.
of RPM on local economy.
Source of economic model and total effects multiplier: “Consumers, Vendors, and the Economic
Importance of Iowa Farmers’ Markets: An Economic Impact Survey Analysis”, Daniel Otto, 2005.
Article is available online (Google author’s name and article title). We spoke with Dr. Otto and he
believes that the multiplier is a very reasonable tool for the Rochester metro area economy.
TOTAL EFFECTS EBT sales at RPM
RP M $237,904
(1st year, July 2008-June 2009)
I O WA FARME RS Oregon token sales
MARKE TS (statewide 2009)
( S TAT E W I D E 2 0 0 4 )
By: Caitlin Simpson, Elizabeth Riedman,
Emma Rainwater, Miles Booth
• Age • Gender
(18-24) 13 Female: 28
(25-29) 11 Male: 16
(30-39) 5 Couples: 5
(50-59) 9 • Household members
Interviewed 48 people
Frequency of Market
Reasons For Attending
Zip Code Distribution
• Weekly meals
• Origin of product
• Spending Habits
• Frequent Visits (except special events)
• Of the people interviewed, the most highly valued experiences
were as followed:
o Diversity- Words to describe the market included ethnic, different,
cultural, and eclectic
o Support local farms
o Community- Part of a greater whole
o Interacting and getting together with friends and family
o Atmosphere- Many said that "there is nothing else like the market in
o Walking encourages exercise
U P O N E VA L U AT I N G T H E O V E R L A P P I N G R E A S O N S
F O R C O M I N G TO T H E M A R K E T, I T I T C L E A R T H AT
F O R M A N Y C U S TO M E R S , T H E M A R K E T R E P R E S E N T S
A N D FA C I L I TAT E S T H E I D E A O F C O M M U N I T Y
But What About People in
• While some people fall into both categories marketing
specifically to either group will effectively encourage the
people in both groups to come to the market. Further, we
would like to point to the fact that the market is unique in the
sense that it offers both low prices and a quality experience.
Suggestions For Change
• Vendors reluctant to take tokens
• Facade of businesses
• Better organization
• More organic food
• Differentiate between farm grown and wholesale goods
BY: STEPHANIA ROMANIUK,
ELIZA FRIEDMAN, SUSANNA
VIRGILIO, VON HOLGUIN
• Commitment to customers
• Career is first and foremost
• Vendors are successful when they’re fair to themselves
first, then their customers
• Know products inside and out
• Character and integrity are vital as a business person
• It’s impossible to get along with everyone, but cherish
the fact that people from all walks of life come to the
• General business lessons: marketing, pricing,
Where Vendors come from
How long they’ve been in
• RPM: limited amount of responses
o Range: 4-70 years
o Mean: 23
o 4, 4, 12, 15, 24, 26, 37, 65
• In the business: limited amount of
o Range: 30-70 years
o Mean: 51 years
o 42, 32, 55, 60, 49, 68
Where the Vendors Sell in Addition to
• ~67% of vendor surveyed said they ONLY sell
at the RPM
• Outside of Buffalo
• Roadside stands near farm
• Other public markets and wholesale
• Store in Albion
• Markets across NY, PA, and FL
Relations with Customers
• Relations are casual and friendly
• Steady and returning customers
o are attentive but firm
o stay current in news relating to products
o inform customers about products. Many customers ask
o realize the importance of having good relations with
o listen to customers’ needs
o hold a sense of pride of good customer relations
• Sense of community
Thoughts on vendors’ RPM involvement
• Opportunity to learn
• Desirable place to work
• Exposure to customers
• Personal history and family involvement
• Pride in product quality and personal integrity
• Relationships with customers
• “It’s a lifestyle”
Thoughts on Winter Shed
• Many were ambivalent or not interested
o Deeper stalls and more loading area space
o More effective way of heating
o “Make it more open”
o Doors which are easier to open
o Glass windows
o Consistent cleanliness
o Too hot for certain products
o Not enough space for customers
o Current one is not filled to capacity
o Rent is too expensive
Suggestions for Improvement
• Repairs/ cleanliness
• Receptive to vendors concerns
By: Emily Adams, Kristina Diaz and Kevin Zheng
• 11 Businesses within and adjoining the
• 3 categories:
o Stand - Juan & Maria’s Empanadas, Scott’s, Cherry’s
European, Zimmerman’s Hots
o Coffee/Bakery – Java’s, The Little Bakery, Union Street
Bakery, Boulder, Lena’s Bake Shoppe
o Specialty shop – Giordano’s European Cheese, Fare Game
Bakery and Coffee Shops
JAVA’ S Union Street Bakery
• Several locations in • Business started 5 years
Rochester, NY ago
• Majority of revenue at • Open 7 days a week
the RPM location • Greater proportion of
comes from bean sales sales happen during days
to businesses in when public market is
Rochester area open
• Open 7 days a week
o Week days primarily for
C H E R RY ’ S Juan and Maria’s
EUROPEAN Scott’s Empanadas
• Family owned • Public market since
• Family owned 2003
business business • Public market is only
• Owned for 5 • At market for 19 location
years • Originally from Chile
years and liked the idea of an
open air market
• Advertise on radio, in
newspapers and on
The average estimated number of customers for all 3
stands on a Saturday is 400
Giordano Import Inc. European Cheese Shop
• Family business
• Began importing olive oil from Italy and expanded to cheese,
olives and other imported specialty items
o Imports directly from Europe
• Majority are family run and exist only at the market
• Stands and coffee shops/bakeries are more popular
• Most businesses rely on customer loyalty and word of
o Pride in quality and affordability of products
o “I don’t have enough room or resources to advertise”
o Many believe that the RPM should do more to
• Some stands would like to be open during the special
events held at the RPM but feel the cost to be open is to
Rochester Public Market
BY: KATHERINE BURNHAM, EDWARD
CHI, ARIELLE FRIEDLANDER,
ELIZABETH KIM, JOSHUA STILLMAN,
AND BENJAMIN WITTEN
Our Survey on
1. Are you aware of the Rochester Public Market?
2. How did you first hear about the Rochester Public
3. Are you aware of the following special events that
occur at the Market?
4. How useful do you think these special events are in
attracting customers to the market?
5. In your opinion, what does the Rochester Public
Market offer that other stores do not?
6. Where do you shop to purchase the following goods?
[RPM, Other Stores/Supermarkets, Other Farmers'
7. Demographic Information - Age, Gender, Zip Code
8. How did you hear about our survey?
• Collected 565 Responses
• Out of those 565, 512 participants completed
the entire survey
• Distributed Survey through:
o Facebook Event
o Friends of the Market
o Weekly Buzz
Are You Aware of the RPM?
How did you hear about the Market?
Why such a significant
• Women more likely to
take surveys than men
• Women more often shop
Who Comes to the Market?
How Did You Hear About The Survey?
"From my niece who is a
student at U of R"
"I work for the Culver Medical Group (part of Highland Hospital and under the U of R. "umbrella")
and found in my email."
"Work at URMC. I've shopped at the Market weekly for 30 years.”
"Isn't anyone interested in why I don't shop at the Public Market? I heard about the survey from
@Rochester, the UR daily e-newsletter."
What Do People Like To Buy
At The Public Market?
Are you Aware of Special Events?
Responses: No; Yes, but have not attended; Yes, have attended
Ordered Least Attended Event to Most Attended
Harvest Jamboree Ex. 61.3% 30.0% 8.8%
Concerts & Night Market
Community Garage Sale
Flower Days 34.3% 31.0% 34.7%
Students were high percent of participants (not local);
Some events only occur once a year, while others happen frequently
Are the Special Events Useful in
Never heard of Market N/A: 27/4 - 42.4%
Not Useful: <4.1%
Somewhat Useful: 20.1- 32.1%
Very Useful: 29.1- 49.9%
What does the RPM offer?
- Categorization of responses
"The public market offers great prices on fresh locally grown
products. I think it is beneficial because you get a lot for your dollar
while supporting local Rochester Area businesses."
"The opportunity to buy local, and to shop in a real market
atmosphere. It makes buying needed things more fun and interesting.
And it's more personal, more in touch with the community, since you
are interacting with the people who actually grow and produce the
"Fresh fruit for cheaper, and the experience is always fun.
Oh yea, the AMISH PEOPLE MAKE THE BEST BREAD EVER."
"The freshest produce. Makes 'Eat Local' an easy reality. A feel for
how cosmopolitan our city is."
"Necessary items at bargain prices all at the same location. Also, the
feeling of a more direct and ancient form of commerce. What I enjoy
the most is purchasing directly from local farmers and feeling part of
the community at large. Although I have heard that many vendors
are distributors or other forms of middlemen (i.e. not necessarily
farmers) and I think this may be misleading to many."
"Lively wonderful healthy mix of people from all the cultures and
neighborhoods in Rochester. The ONLY place where this happens.
local produce, in season foods, places to sit and watch the crowds,
drink coffee, Italian cheese shop."
Suggested Ways to Further Advertise
-Expand and Update
"Local Foods Week" at University of Rochester
-Contribute and advertise
Bike-Friendly (Could reduce parking problem possibly too)
Come to campus
-Leftover produce Tues/Thurs?
Reusable Bags and RPM Pins
Further Ways to Advertise cont.
Feature information in @Rochester and the Weekly Buzz
Ask vendors how they would prefer to be advertised
-Customers and vendors
Local Foods Week:
Dining Services, Campus Dish,
University Council on Environmental Sustainability
Bring Market to Campus:
Celia Palmer, Director of Conference & Events Office