Transparency Behind 5 Minute Package Pricing

An important aspect of 5 Minute Farmer network is the transparency levels we maintain in anything we do.

We had introduced a '5 Minute Essentials Package' for Rs.650/- and many people have asked why the price is so high at Rs.650/- .

This post is an attempt to provide more information so that everyone interested can get an in depth information on how this is structured.

I BACKGROUND

Many of you know our model of working ( https://farmers.fiveminutes.in has more details ). 

In short, we give the farmers the price they ask and take the produce from them.

Please feel free to ask the 1000+ customers who are buying with us for a few months now and they will speak for the quality and taste of the produce.

They are harvested and sent to you within 24 hours.

If anyone wants to compare pricing, it has to start from

1. How much was the farmer paid?

2. How much was the selling price finally when the customer got it?

and include all the other costs involved.

We have always been transparent enough to give full details starting from the farmer name, phone number, amount paid for each produce, packing cost, transport cost, delivery cost, seller fees, platform fees etc.

Our calculator is available at https://fiveminutes.in/calculator for any one interested in knowing the exact specifics.

For others, will try to explain here as much as possible - without boring you to death.

We (Five Minute Farmers) take 5 Rupees on top of every 100 Rupees given to the producer.

The Seller is paid Rs.20/- for every 100 Rupees given to the producer.

This ensures the farmer gets the highest profit and everyone else down the chain gets paid a smaller proportion based on their contribution.

II THE ESSENTIALS PACKAGE

We generally get the produce from various farmers and sort them in our Chennai location and deliver to homes in Chennai.

Due to the restrictions in vehicle movement between districts, currently we are getting all the produce from Hosur.

The essentials package was created with a selected set of items. The exact split up for each produce and the amount paid to the farmer coordinator is provided, along with his phone number and name. 

This calculation is for 250 packages, each costing Rs.650/-. While the total collections will be Rs.1,62,500/-, the expenses are almost equal or more than the revenue.

Please do let us know after studying it if you still feel if this is a fly by night scheme :)

III OUR VIEW

If you feel the price is too high, I agree, it might not be for you and you are better off, not ordering it.

If you feel we are trying to make a quick buck in the middle, we strongly disagree. 

We are here to make money in the long run after we ensure our farmers are rich, our consumers get good quality food and the overall quality of life improves for our farmers.

When you find someone offering the same items for a lower cost, the questions you should be asking are:

1. How much was paid to the farmer?
2. How much is made by the middlemen / seller?

You will realise that many times, the middle men make good profit, while the farmer struggles because he had to sell at a loss, and the consumer with their ignorance are happy to get the items at a very low price.