Our Programs - Buy Local Products

Supporting and Establishing Fair Trade Programs

Fair Trade Certified products and services are generally priced competitively with comparable products and services. However, many small cooperatives incur higher costs to transport their products to market because they lack the shipping and logistical capabilities of vertically-integrated, multinational companies.

Increased consumer demand is the key that will open up the Fair Trade market. By supporting Fair Trade cooperatives in your own community, you can help to support social equity by investing in local communities and artisans around the world. There are many things that you can do to broaden the Fair Trade market in your area. Consider the following:

Increase Demand. Consumers increasingly have more options where they can buy their Fair Trade products and services. This increases competition and helps to drive down the price of Fair Trade goods. So, request more Fair Trade products in your local grocery and retail stores by filling out a customer comment card every time you shop, and encouraging friends to do the same. If customer comment cards aren't available, determine the name of the decision maker or manager and write a letter to them. Third-party kiosks, such as those found at World of Good, make it easy and profitable for businesses to display Fair Trade products.

Affiliate Programs. Web-based affiliate programs are also available for those who don't operate a brick and mortar business. These programs make it easy for you to promote fair trade handcrafts on websites, blogs and newsletters while at the same time supplementing your revenue.

Raise Funds and Awareness. Use fair trade gifts, house wares and accessories to raise money for your organization while at the same time promoting fair trade and supporting local and artisan communities. Many Fair Trade companies offer fundraising discounts that increase based on the size of your purchase.

Learn from the Pros. Read about existing Fair Trade companies and how they got to where they are today. Wonderful examples abound, including Ten Thousand Villages (crafts), Equal Exchange (coffee), AgroFair (fruit), Traidcraft (various), and People Tree (clothing).

Make Connections. If you know of an artisan community, non-profit, or NGO that makes attractive handcrafted products and would benefit from exposure in the retail markets in the developed world, inform one of the many reputable Fair Trade companies. They might be willing to stock their products.

Interested in starting your own Fair Trade program? Read on …

Establishing Fair Trade Programs

Find a Niche. Decide what type of Fair Trade product you would like to sell. Traditionally, the Fair Trade market has been limited to edible products, such as coffee, bananas and chocolate, or craft items, such as textiles and ceramics. In order for this growing movement to continue to flourish, there must be an increase in the volumes of existing products, and in the variety of products available to the consumer. Research different cultures to discover where a need exists and what types of producers are currently lacking representation in the market.

Identify Local Partners. Once you've identified a need, identify community groups and or artisans who may not have a sustainable customer base but are interested in expanding the market reach. You should then meet with them to determine their aspirations, develop a plan for the future, and set up a long-term, mutually beneficial direct trading relationship that's based on all of the fair trade principles.

Develop a Business Plan. Determine if you want to work with wholesalers, retailers and or open your own store-front or web-based business. Also, determine the types of products and quantity of product that will be purchased, as well as the fair trade pricing. A fair price is one that will allow your partner to meet their basic needs and increase their quality of life. By determining the amount of goods that will be purchased independently of the demand for that good, you can help ensure that your partners will be adequately compensated for all of their work. Consider advancing 50% (or more) of the agreed price, providing your partner with enough income to complete their work, and 50% once a shipment is complete.

Market the Product. Analyze opportunities in the market and develop a marketing plan. Choose your target markets. Markets in developed countries like Australia, Japan, United States, and Western Europe should be considered. The market of conscientious or LOHAS consumers should also be considered. Develop a marketing budget and include advertising outlets that reach your target market and provide a solid return on investment (ROI). If you're unsure of the ROI, contact other advertisers to determine how successful they've been. Then set up a system to track your marketing efforts, so you can refine them over time and maximize your success.

Pricing for Success. The marketing and shipping costs should be covered in the retail price for which the goods are sold. For instance, if a good is purchased for $1 at fair trade pricing, it may be sold for $4 or more, with $1 allocated to shipping, $1 to marketing, and $1 to cover any retail costs. Any profit should go back into the growth of your fair trade business and to your partners to help them build capacity.

Establish Mutually Beneficial relationships. Establish relationships between your fair trade partners and your employees, wholesalers and retailers. Consider organizing annual tours of the fair trade cooperatives you partner with. By taking this approach, participants have an opportunity to gain an understanding of the importance of the project and a personal interest in its success. Furthermore, it allows your fair trade partners the opportunity to share their perspectives and educate visitors about the effect of fair trade on their lives and the lives of their families.

Educate your Clients. Hosting guest speakers, producing informational materials about the benefits of purchasing your Fair Trade products, and offering free samples of Fair Trade coffee or other products to your clients are great ways to raise awareness. Also, consider offering tours of the cooperatives you work with, or motivating your clients to donate financial resources or their time to supporting fair trade.

Please Note. This information is not meant to be comprehensive; it’s meant to provide basic guidelines for establishing a successful fair trade program.

For more information, check out these Fair Trade resources:

Decarlo, Jacqueline. Fair Trade: A Beginner's Guide. Beginner's Guides: 2007.

Ericson, Rose Benz. The Conscious Consumer: Promoting Economic Justice Through Fair Trade. Fair Trade Federation: 2002.

Grimes, Kimberly M. B. Lynne Milgram, Eds. Artisans and Cooperatives: Developing Alternative Trade for the Global Economy. University of Arizona Press: 2000.

Grimes, Kimberly M. A Guide for Retailers: Creating a Successful Fair Trade Business. Fair Trade Resource Network: 2004.

Nicholls, Alex and Opal, Charlotte. Fair Trade: Market-Driven Ethical Consumption. Sage Publications: 2005.

Ransom, David, Ed. No-Nonsense Guide to Fair Trade. New Internationalist: 2006.

Yunus, Muhammad. Banker to the Poor: Micro-Lending and the Battle Against World Poverty. PublicAffairs: 2003.

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