Profit Margin - solely on coffee packages

[nv305]

All,

Trying to get a feel of what you are currently experiencing as a profit margin. The calculation I am asking is directly correlated to the production and shipping costs and not additional overhead.

In an earlier post, I received some feedback stating production costs were anywhere between $5-$6/lb with a selling of 13-15$ roasted.

Trying to see if others are experiencing similar or not.

Thanks in advance

 

[John P]

For me, production cost is $7.81 t0 $9.30 # with selling @ approx $25-$32 per # (actual is $19-$24 per 312g)

 

[nv305]

For me, production cost is $7.81 t0 $9.30 # with selling @ approx $25-$32 per # (actual is $19-$24 per 312g)

Thank you!

 

[nv305]

For me, production cost is $7.81 t0 $9.30 # with selling @ approx $25-$32 per # (actual is $19-$24 per 312g)

Is that how much you sell each 312grans for? Rather high according to what I occasionally.

 

[John P]

Yes, $19-$24 per 312g.. (mostly $19-$22).
Our coffee is exceptional. It's a good value at that price point.

 

[jimbo]

I have not personally had Johns coffee, but have heard about his reputation. One of our baristas visited Johns shop on her vacation a couple weeks ago, and came back RAVING about his siphon coffee. Other customers have talked about his green bean purchasing practices. From everything I have heard, his coffee is truly exceptional and worth every penny. I need to find time to go up there for a visit and taste it for myself.

 

[John P]

jimbo,

Thanks for the kind words. Stop by any time. 8)

And let's be clear: Anyone can source excellent green and turn them brown. It takes a lot more skill, expertise, and craft to make them something special.

 

[Redswing]

John - My wife and I are packing up the minivan and our 4 kids this weekend for a trip to visit with her familiy in the midwest. Heading right through Cafe de Bolla territory. If we hit it during open hours and the stars align, I look forward to tasting your siphon coffee with a shot of espresso on the side.

 

[nv305]

Yes, $19-$24 per 312g.. (mostly $19-$22).
Our coffee is exceptional. It's a good value at that price point.

Thanks for the information John. I appreciate it, sorry for the delay I was out of town.

 

[John P]

Redswing,

That's cool.

We're open 9-6 Mon-Sat. If you are able to make it in, allow yourself a good 20 minutes to enjoy the siphon.

 

[John P]

nv305,

It all depends on comparisons, and establishing "real" value for your product over time.
When I started roasting back in 2005, I could only charge $17 per pound, but time, experience, better sourcing, etc. lead to a much better profit margin today.