3 Essential Tips for Starting Your Coffee Business
Those Coffee People
Our coffee is the best storyteller in the world and us, the ones who tell it. We all have a place in coffee!
How many cups of coffee do you think people consume a day globally? Is it millions or billions? (Mind-blowing answer at the end, get ready!)
The high demand for coffee presents a golden opportunity for entrepreneurs like yourself. But with so many players in the market, the competition is fierce. To help you start your coffee business, we've put together these three essential tips.
1. Know your coffee people
From early birds and night owls to busy bees and fancy drinkers, there's a whole spectrum of coffee lovers out there.
That's why knowing your audience is the key ingredient to crafting the perfect brand story and choosing the right product. After all, you want to convince people to switch to your coffee over whatever they're currently sipping on, right?
2. Don't break the bank on your initial coffee orders
To reduce expenses and offer extremely competitive prices, large companies are buying in bulk. Understandably, as a new brand, you probably won't have this luxury—but don't despair!
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Although large minimum orders are common in the private label space, you can find deals that can make starting your coffee empire much easier. For example, at Those Coffee People, we provide minimum orders of just 10 kilos (30 x12 oz bags).
3. Price your coffee beans strategically?
Imagine getting a 12 oz/340g bag of roasted coffee for $6.95—which is the deal Those Coffee People can offer. In that case, you can make profits of 100% or more in the US market, where the average price is $16-$18.
To set your price strategically and maximize profit, find out what the competition is doing. Discount retailers like Walmart sell coffee bags for a lower price, ranging from $9- $13. (But remember, the quality is generally much lower.) Are you targeting people who normally would buy from Wholefoods? Then they’re budgeting to spend between $15-$20 per bag of specialty coffee.
Need expert guidance on the road to a successful coffee business? Book a consultation with our Co-Founder, Jennifer, today!
The answer: The world consumes close to 2.25 billion cups of coffee every day.
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