12 Sale Strategies Of Milk Products Business Owners Can Use

An image of a virtual milk market where business owners happily sell their produce.

Despite having advertising constraint placed on raw-milk manufacturers and herd-share dealers, there are still strategies to tell others about your milk products.

Is The Business Of Distributing Milk Profitable?

In view of the demand-supply gap in the market, milk distribution is a profitable business operation. The profit margin in milk industry varies with depending on the site, type of milk (full cream, toned, double toned, flavored milk) and strength of the brand.

How much does a dairy farmer earn?

A quick search online shows that the average dairy producer's net worth is nearly $5 million (at the time the estimation was made), and in 2016, the average producer earned an income of about $160,000, even after deduction of operating expenses, according to the numbers available from Statistics Canada.

On average, farms with less than 250 cows earn roughly about $125 to $170 per cow in 2020, while farms with more than 1000 or 5000 cows earn about 3 to 5 times of that amount. Some regions are least profitable, and in fact, farms with 250 cows and below are expected to lose money in 2022.

Be aware of your competitors, whether they are small, local dairy farmers or big, national dairy competitors. Once you have got your product and process research determine your niche in the dairy market, you can start to establish your position. Study your competitors' advertisements to identify what you can improve and improvise.

The estimated profit earned per cattle for a day is being calculated by considering two factors only: 

  • the selling price of milk
  • the expenditure on cattle feed

Dairy farming has been proven to lower rural poverty level as it guarantees stable revenue and provides security to the members of the family. Sales of milk, dung, stock, and milk products are the examples of various sources of income from dairy farming. Farmers earn around 50% of income from dairying and livestock.

Apart from being a vital global sector, dairying is equally vital in developing economies like India, for supplying nutrition subsistence, lowering rural poverty, inequity, securing food security for millions of rural households, and boosting economic growth, particularly in rural areas.

India being a prime agricultural economy has a strong connection with dairy farming since the Vedic era. Dairy farming in India provides 4% to its GDP. This business in India is very profitable as it has its demand all year long.

Who Is The Target Market For Your Milk Products?

The ideal target audience for milk products are the end users (consumers), the household main shoppers (especially for families with children), medical practitioners, and the media.

For instance, an analysis of a survey shows that the majority of milk tea target buyers are young people around 19 to 24 years old. This means that the product or its derivatives will have to be focused on the wants, needs and demands of this group of people.

What Are The Identifiable Challenges For Milk Industry?

The major challenges for the dairy industry are animal diseases, lack of fodder and nutritious feed, restricted market access, and technical guidelines. These aspects warrant special attention.

Lets take for example the most consumed milk in the world. Many of us probably not aware that goat milk is the number-one consumed milk in the world. Goat only produces one gallon of milk a day, compared to cow, which produces four times that amount.

These animals are treated like milk-producing machines and are genetically exploited, and may be pumped full of antibiotics and hormones in order to produce more milk. While cows agonize on these farms, humans who drink their milk increase their chances of developing heart disease, diabetes, cancer, and many other sickness.

There were 2,550 lesser licensed dairy operations in 2020 than in 2019, when the number decreased by 3,261. The overall number of licensed operations in the U.S. has gone steadily downward since data collection started, declining by more than 55%, from 70,375 in 2003 to 31,657 in 2020.

Even so, most operators surveyed expect positive growth in the next 3 to 5 years, with roughly 40 percent projecting more than 5 percent yearly growth. This optimism is likely coming from the fact that dairy is making a strong comeback in 2020 after several years of low growth.

What Is Your General Sales Plan Then?

The general plan for selling your milk product(s) details the strategy that you will use to sell to customers. The plan looks at the target market, the value proposition of your brand, the marketing campaigns to be carried out, and the factors to be used to assess the effectiveness of marketing efforts.

Creating a sales strategy for selling milk products, requires you to include a series of elements because of its multi-step process towards increasing product sales. For example, include a SWOT analysis to measure your strengths, weaknesses, opportunities, and threats. It creates a chance to identify the best places to pursue business and the gaps that need to be filled in.

Every business owner dreams of improving their sales as this means more profits and also business growth. Coming up with an excellent product sales strategy can be a very daunting process if not keenly watched out because a sales strategy is more than just a sales pitch.

1. Find the sales center

Pay close attention to these 4 tips when finding your sales center aimed at increasing sales of a product:

  • understand your sales process since it will help you find your area of focus and enable you to map your client’s behavior before and after the sale
  • increases customer’s satisfaction at minimal costs
  • allocate all possible and most profitable resources
  • look at how potential clients integrate with a marketing plan in a most beneficial program

2. Set financial projection

Be realistic about your financial projections. The sensible potential gain for every business venture produces remarkable metrics for example how to do milk product pricing and sales units you need to make.

3. Set sales goal

What they say is true - goal tremendously helps people and company succeed in their endeavor. Before you go ahead and sell your items, set up attainable, measurable, and specific goals first. Don't stress as doing this is relatively easy. Simply think about the things that you might want to accomplish. These goals will keep you on track, and they will most likely save you motivated.

4. Plan ahead

Before you go out to the market, make sure that you are well prepared. You need to know what to say, when and how you can address common objections. You should likewise have prepared responses for all their item related questions. Remember that productive gatherings will without a doubt prompt to the following stride of the sales cycle.

5. Focus on needs and demands

Focus on the needs and demands of your prospects is another strategy of milk products sales. Rather than doing your sales pitch the moment you meet with your customers, it would be better if you can find their needs and demands first. Ask probing questions and get your potential prospects to share their preference. By knowing all this information, you'll know effectively how you can present your items in a way that these people will discover them more valuable and enticing.

Here are some examples for most profitable dairy products:

  • Ghee
  • Ice-Cream
  • Lassi
  • Cheese Cake
  • Yogurt or Curd
  • Bottled Milk
  • Rasgulla
  • Cream

6. Products Catalog

This is your business' heart and soul. You need to do a lot of planning regarding what to include in your catalog especially if this is your first time to start this kind of business. You must also decide whether you will need an assistant who can help you so that you can focus on other essential things that can improve the sales of your products.

7. Good customer service

A great way to instill this attitude into staff is to remind them that the customers are the reason they are there. Without customers, there is no business for them to work.

The way that problems are handled has the potential to turn an unhappy customer into a person that is willing to give a business another chance. Instead of arguing with unhappy customers, staff should develop a "the customer is always right" mentality in mind as a sale strategy for milk products.

8. Quick service industry

It is a self-operative application that permits buyers to place an order quickly from their mobile devices. This app also allows buyers to submit the bill of the order instantly without the need to wait for any staffs. In a business that requires attracting customer's attention more strongly, this sophisticated mobile-based retail management is another perfect sales strategy.

9. Engage celebrity

Individuals tend to think something significantly more when it originates from a popular figure. Celebrity, cops, artists, teachers, doctors, for example, all have an air of authority when they talk on some subject. You can leverage this to support you when you promote your items through advertising.

Request the endorsement of several experts in your product niche, and incorporate the best ones in any business publication you have.

10. Continuous promotion

It is one of the strategies that you can use to scale your business sales and increase income. Marketing is essential around this issue. It can include creating an advertisement that is designed to stir the right reactions from the target audience. There are different mediums of doing this including social media, flyers, radio, TV billboards and the internet.

Apart from advertising, you can also offer exclusive deals and discounts to your customers. It is a strategy that never disappoints in driving the sales through the roof.

Other promotional strategies include making the product purchase appear secure through things such as money back guarantees and warranties.

11. Free samples

The strategies that you can use here include allowing the customers to try products before buying them. With a good free sample, it is given that most will buy your products.

12. Reward the salesperson

Another smart business strategy for marketing milk products is giving incentives to the salesperson for sales efforts and successes. You can provide promotions, commissions and reward packages for every product they sell or even achievement awards. You will be surprised by just how much they can fetch you with incentives in place.

BONUS STRATEGY: Many businesses are taking part in their operation online. Milk products business owners can adopt the same strategy by taking part in the selling process using the power of the internet. Find out how to do this here - Sales Strategy for eCommerce.


  1. Great blog ! I am impressed with suggestions of author.My Business Musings

    1. Hey mybusinessmusings,

      Thanks a bunch for your kind words.

      I'm really glad you're impressed with the suggestions and content of the blog. It's always great to hear when the work resonates with readers.

      If there are any topics you're particularly interested in or if you have any suggestions of your own, feel free to share. Your thoughts and insights are always welcome and appreciated.

      Cheers to more great discussions :-)

  2. Thank you for the informative blog - it's always a pleasure to gain knowledge from your expertise. The way you make complex concepts easy to understand through clear writing is appreciated. I look forward to reading more of your enlightening content.

    1. Hey Punjab Sindh,

      Thank you so much for your encouraging words!

      It's truly gratifying to know that you're finding the blog informative and easy to understand. I strive to break down complex concepts into digestible pieces, so it's wonderful to hear that this approach is hitting the mark for you.

      Your eagerness for future content is a big motivator for me. Stay tuned for more enlightening and hopefully engaging posts. Your feedback and continued interest are what make this journey so rewarding. If there are any specific topics you're interested in, don't hesitate to let me know.

      Warm regards :-)