Selling Honey at Farmers Markets, Shops and Country Shows…

What the Simulation Models

The 2D companion to the honey sales-channel simulator uses a greedy jar-allocation model, where each channel competes for customers based on price and supply. The simulation tracks how varying factors like market stall fees, retailer commissions, and show frequency influence which channel becomes most profitable.

By adjusting sliders for price per jar, monthly honey supply, farmers market stall fee, shop/retailer commission, and country shows per month, users can observe the allocation of jars across different sales channels and their corresponding profits.

The Greedy Jar-Allocation Model

In this model, each channel (farmers market stall, shop, or country show) greedily allocates as many jars as possible based on the price it can charge. The higher the price and supply, the more jars a channel can sell. However, costs like stall fees and commissions reduce the net profit for each jar sold.

The model highlights how these economic factors interact to determine which sales channel is most profitable at any given time.

live demo · related simulation● LIVE

Capacity-Amortized Effective Margin

A unique feature of this 2D view is the capacity-amortized effective margin curve, which shows how rising commission or stall fees can flip the profitability of different sales channels. This curve represents the net profit per jar after accounting for fixed and variable costs over time.

By analyzing this curve, users can understand when changes in market conditions might shift the optimal distribution strategy for maximizing overall profits.

Why It Matters

Understanding these economic principles is crucial for small-scale producers and retailers looking to optimize their sales strategies. By simulating different scenarios, users can make informed decisions about pricing, supply chain management, and market selection.

The insights gained from this simulation can help businesses in the food industry, as well as any other sector facing similar competitive dynamics.

Frequently asked questions

How does the greedy jar-allocation model work?

Each sales channel allocates jars based on its price and supply. Channels with higher prices or more available jars can sell more, but costs like stall fees and commissions reduce their net profit per jar.

What is the capacity-amortized effective margin curve used for?

This curve shows how fixed and variable costs are amortized over time, helping users understand when changes in commission or stall fees might affect profitability across different sales channels.

Can this model be applied to other products besides honey?

Yes, the principles of the greedy jar-allocation model can be adapted to other products and industries where similar competitive dynamics exist. The core economic concepts are widely applicable in various market scenarios.

How does changing the number of country shows per month impact sales?

Increasing the number of country shows can boost sales by providing more opportunities for customers to purchase honey, but it also increases costs like stall fees. The model helps users balance these factors to maximize profits.

Try it live

Everything above runs in your browser — open Selling Honey at Farmers Markets, Shops and Country Shows: Sales-Channel Economics — 2D and change the parameters while it is running. Nothing is installed, nothing is uploaded, the whole model lives in one tab.

▶ Open Selling Honey at Farmers Markets, Shops and Country Shows: Sales-Channel Economics — 2D simulation