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Tempeh industry is a typical household business that requires little investment and has few workers. Efficient marketing could optimize the income of tempeh’s producers. This research aims to understand the marketing efficiency and factors that affect the purchasing margin of tempeh in selected areas. This research will study the value of farmer’s share and the marketing margin of tempeh to evaluate the commerce efficiency. The sampels are the producers and sellers. 58 tempeh’s producers are selected by the simple random sampling method. The sellers, on the other hand, are chosen using the snowball sampling, a technique that tracks down the marketing process. The variable studied in the research are as follows: 1) producer’s tempeh’s selling cost, 2) tempeh’s selling price on commercial institution, 3) marketing cost, 4) total amount of sold products, 5) numbers of marketing institution where the product passes, 6) the marketing margin, 7) the farmer’s share, and 8) marketing efficiency. The research finds three marketing channels on the case study areas. The first channel is from the producers to tempeh. The second channel is form producers to retailers to consumers. The third channel is from producers to peddlers to consumers. By using the farmer’s share, the calculation of commerce efficiency. The leading cause is the lack of middlemen. Moreover, the double regression analysis show the retailers tempeh selling cost (X4) to be the dominant factor in the marketing margin of tempeh.
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