Cashing in from tobacco sales

Despite what they will tell you about Zimbabwe now being a “basket case” ( whatever that means) agriculture is still an important sector of our economy. Tobacco still rules the roost in this sector; bringing in much needed relief to the liquidity vice that has our country wallowing in stagflation.  In 2012 $500 million worth of tobacco was sold, in 2013 the farmers got 577.3 million dollars and experts estimate that $616 million is going to have been paid to farmers by the end of the current season. It is also estimated that over 71 000 small scale farmers earn their living from tobacco. It is surprising therefore that the tech industry has, for the most part done little, to cash in and take advantage of this potential market.

Most farmers hardly ever come into town before the selling season and when they do come during the season, they often quickly sell their crop, tend not to stray far from the floors, buy loads of essentials from shops close to the floors or popular shopping places like Gulf Complex before disappearing into their trucks and driving away to their farms to either prepare the next batch to sell or hibernate until the next selling season. Most sells done by the tech industry to these farmers tend to be accidental rather than a result of deliberate and tailored marketing which means most opportunities to sell to this market are often missed.

Develop a clear and develop strategy

Clearly there is a lot of money to be made by targeting farmers most of whom crave technology but often do not know that certain technology exist or where to buy it on account of them living in secluded areas for most part of the year. Most auction floors have booths that can be used as shops or temporary branches during the course of the season in exchange for rental payments. It is rather surprising that some of these booths often go unoccupied for the duration of the season. The only tech companies that seem to make an effort through their agents are mobile operators like Econet, Telecel and Netone. Companies like ZOL, YoAfrica and Gigatel often miss on the party and so do all those indigenous business people that sell Laptops, modems and other tech related paraphernalia.

Technology companies should develop clear and deliberate strategies aimed at catering for the needs of farmers. For example those who sell smartphones should could sell rugged smartphones that are loaded with Apps a farmer might find useful, for example phones with weather Apps. Developers should make an effort to make Apps that would meet the needs of farmers for example a tobacco diary app that is linked to the TIMB database. These things would be consciously marketed with the express intent of making a sell to the farmer. Banks have been making tailored packages for farmers with much success and I think the tech industry can replicate that success.

Possible strategies

• Rent a booth at one or more of the three auction floors ( Premier, Boka and TSF) or within the vicinity of the floors. I would recommend TSF and Boka since they are the two largest floors with a large client base.
• Create a tailor made marketing solution targeting farmers. For example glossy posters with farmers using technology at their farm with brief and visible advantages of using this technology.
• Get sales persons on the ground to roam around the floors. These would be easily visible if they are dressed in corporate colours with visible IDs. Most floors charge you to allow your sales persons to operate on these floors. You might also need to get permission from the TIMB but the staff there are very courteous and helpful so don’t be put off by this.
• You can also get a Stop Order number from the TIMB after paying an application fee. The stop order number allows you to offer credit to farmers without fear of them defaulting. Whenever you give the farmer something on credit they sign a Contract of Sale form that you can use to issue an TIMB stop order. No matter what auction floor they sell their crop at next time they make a sale, you will get a Bearer’s cheque that you can cash in to get your money.
• Set up a support desk to offer after sales help to farmers. You should also provide them with an address to which they can bring their queries after the auction floors have been closed including a number they can call to receive said after sales support. You should think long term: most companies have a habit of making sales using treachery- for a example a certain company drew the ire of farmers recently by selling them modems without telling them that their farms were not covered by the company’s network. Your sales people must be honest and upfront and not try to make a sale by any means necessary. Word travels fast at these auction floors and you do not want your brand to be associated with “matsotsi” – farmers have been known to resort to violence whenever they feel cheated so you have been warned.

If you have never been to auction floors you should pay them a visit and try and understand the basics of the system and learn how you can become part of the ecosystem. There is money to be made.

Picture by VOA.