Pricing Strategy and Contract Sales

Setting Your Price Points

1. Cost-Plus Pricing (The Foundation)

Add up all your costs (Feed + Labor + Electricity + Packaging) and add a 30-50% profit margin.

Example: If it costs you 400 KES to produce 1kg of dried crickets, your minimum selling price should be 600 KES.

2. Value-Based Pricing (The Premium)

For the human market, price based on what the customer is willing to pay for a “Health Supplement.”

Example: A 50g bag of “Gourmet Spiced Crickets” can sell for 250 KES. That is 5,000 KES per kilogram!

3. Competitive Pricing (The Volume)

For the feed market, you must be within 10-15% of the price of high-quality fishmeal. If fishmeal is 150 KES/kg, and you sell for 300 KES/kg, the farmer won’t buy from you – even if your product is better.

Securing the Off-take Contract

A contract is built on two things: Volume and Quality.

The Pitch: “I can provide you with 20kg of 65% protein cricket meal every Monday morning at a fixed price of X.”
The Penalty: A contract works both ways. If you fail to deliver, you might lose the contract. This is why “Staggered Harvesting” is so important!

Pricing Comparison Table (Est. Kenya Market)

Product	Unit	Target Price (KES)	Target Price (USD)
Live Crickets	1,000 pieces	1,500 – 2,500	$12 – $19
Cricket Meal (Feed)	1 kg	250 – 450	$2 – $3.50
Roasted Crickets	100 g	350 – 600	$2.70 – $4.60
Cricket Flour	1 kg	1,500 – 3,000	$11.50 – $23

Case Study: The Co-operative Power in Benin

In Benin, five small-scale cricket farmers realized they were all too small to sell to a major national poultry feed mill. They formed a “Cluster.” Every Friday, they pooled their harvests into one central collection point. Together, they were able to guarantee 200kg of meal per week. Because they were “reliable,” the mill signed a 1-year contract with them at a “guaranteed” price. By working together, they moved from “unstable” street sales to “guaranteed” industrial income.

Important Things to Keep in Mind

Don’t Undersell Yourself: Cricket protein is a “Premium” product. Do not drop your price so low that you are making zero profit just to get a sale.
Keep Impeccable Records: Track every cent spent and every gram sold. You cannot improve what you do not measure.
Reinvest: In the first year, try to put 50% of your profits back into buying more bins and better equipment. Growth is the key to long-term wealth.