New study finds Illinoisans willing to pay upcharge for products made locally
How much more are Illinoisans willing to pay for locally made goods, and where do they draw the line pricewise at the farmer’s market checkout?
Walking around the Illinois Product’s Farmers Market in Springfield, Lauvern McNeese and her daughter Libra didn’t really have a cap set on how much to spend, but knew they were searching for smartly priced items to take home.
“I usually draw the line at the cost if I get more for my money if I get it here or some grocery store,” Lauvern McNeese said with a bottle of wine she’d just purchased in her bag.
The Illinois Product’s Farmers Market runs from May to late September and is run by the Illinois Department of Agriculture, bringing producers face to face with consumers for the past 17 years.
Springfield baker Carrie Disney ran a stand for Forged in Flour with homemade sourdoughs and bagels of every variety. Disney said her stand is busy around town at the Old Capital Farmers Market and making deliveries for her online section of her store.
Her business runs on a growing model of local businesses by selling products online as well as in-person to expand profits while not moving into grocery stores or opening a brick and mortar.
In a time of digitization of groceries through apps like Door Dash or Instacart that deliver groceries from chain store to door, local businesses are reaching online to bridge that gap, since most online shopping apps do not deal with local producers.
Following a 2020 Reshoring Institute survey which found 83% of Americans were willing to pay up to one fifth more for domestic products versus imported, HostingAdvice with Cherry Digital set to go one step farther and find out how much more Illinoisans are willing to pay for the “Made in Illinois” label.
The survey report released in late May used an online panel of 3,000 Americans who were vetted through a two-step process to ensure they were from the state they claimed. Of the whole group, data was collected for how much of a premium people would pay for products produced and sold online by businesses in their state.
On average, Illinois residents are willing to pay an upcharge to 23% for a product locally made, compared to chain retailers.
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For a dozen bagels, Disney charges $23 and bakes anything from plain to asiago cheese. Comparatively, whether buying in a bag or from the store bakery a dozen bagels at Walmart will set customers back anywhere from $7.48 to $19.41.
That’s a 17% difference between Canyon Bakehouse bagels and Forged in Flour, not including taxes.
“I try to keep them as affordable as I can,” Disney said. “I try to use the highest quality ingredients I can find – unbleached flour, organic ingredients come with a higher price … I still try to charge what I would want to pay for it.”
The survey found consumers are most willing to pay a premium for the following locally made products, in order of preference:
Health and beauty products.
Clothing and apparel.
Cars and car parts.
Electronics.
Home appliances.
Furniture and home decor.
Food and beverages.
Sporting goods and outdoor equipment.
Children's products.
Jewelry and accessories.
The report also surveyed producers across Illinois and their marketing tactics selling on the internet. Around 81% of online marketers adjust their marketing strategies based on the region they are targeting.
Matt Short, owner of MKS Livestock of Lincoln, travels to markets around central Illinois to sell juicy beef brisket and snapping summer sausages to hungry locals. At his stall, he provides an online form people can use to order delivery or pickup for fresh meat that people know where it comes from.
Short says he prices his items on the current market trends and cost of production, and typically people coming up to his stand care more about quality than price.
“From the processing and the packaging it all adds up,” Short said. “From what I’ve seen, 9 out of 10 people don't really care what the price is. They will go ahead and splurge the extra to be able to get the quality and knowing that they’re helping out the local producers.”
Knowing where their groceries come from is one of the driving factors for consumers from across the state to purchase from local brands online or in-person. While the grocery stores may have lower priced goods, prices are still rising in stores and farmers markets are reliable ways to find produce close to costs.
Claire Grant writes about business, growth and development and other news topics for The State Journal-Register. She can be reached at [email protected]; and on X (Formerly known as Twitter): @Claire_Granted
This article originally appeared on State Journal-Register: Study: Illinois residents willing to pay more for products made locally