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Thread: Private Label

  1. #1
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    Private Label

    Trying to learn a bit more about the private label side of the industry and the average cost? Questions I have will be more specific as I start to receive responses.

    Basically just the general walk-thru of private labeling would be nice to know.

  2. #2
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    Quote Originally Posted by nv305 View Post
    Trying to learn a bit more about the private label side of the industry and the average cost? Questions I have will be more specific as I start to receive responses.

    Basically just the general walk-thru of private labeling would be nice to know.
    okay. here is general walk-thru.
    1. choose a roaster nearby who will make a private label for you. this is easiest way. but could be costly, however, you can buy small q'ty. I believe that most of well equipped roasters can do it. however, if you are looking at a long run business, this method is not that great for many reasons.

    2. or go with an actual coffee factory in certain country. you would not choose ethiopia or kenya due to communication and distance problem. So choose mexico, Guatemala or Costa Rica.

    3. ask them for sample for you to test and approve.

    4. Since you want your own name and design for the coffee label, you can have your own designer do the design or let the factory do it for you with less cost. (of course, you need to check the name search for USA)

    5. factory will give you the minimum q'ty you need to buy.

    6. you need to pay about 30% down payment by wire transfer to the factory. (of course, you must choose reliable factory with proven track record)

    7. once your design is ready, they will send you a sample for you to approve.

    8. after your complete order is ready to be shipped, they will again send you the final sample for you to check the quality of printing of the bag, artwork...etc plus coffee quality. I assume that you will buy the roasted coffee. for green coffee, they do not package them in 12 or 16oz bag. they sell buy 100 lbs or 60kgs or 69kgs. then you need to bring them to USA, have someone roast them, package them...etc. this is only good for big roasters, not for small individual company.
    BTW, the bags will be valve bag, so that freshness will be okay for six month at least. or if you want ground coffee for some of them, they will do the vacuum pack for you. The cost of valve or vacuum is about the same.

    9. before factory ship out your goods, you will wire transfer the 70% balance to them.

    10. you can arrange your own shipping company to pick up the goods and ship out to you or factory can arrange this for you also. Since most of factories have relationship with a lot of shipping companies, depends on location and countries, they can choose the best qualified company for shipping and customs clearance when it gets to the harbour.

    I might have forgot to mention few small things, but generally, this answers your question.
    BTW, Average cost matter, i can also give you answer on this, but it will be very very long answer and complicated. No one will be interested in reading.

  3. #3
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    Quote Originally Posted by ensoluna View Post
    okay. here is general walk-thru.
    1. choose a roaster nearby who will make a private label for you. this is easiest way. but could be costly, however, you can buy small q'ty. I believe that most of well equipped roasters can do it. however, if you are looking at a long run business, this method is not that great for many reasons.

    2. or go with an actual coffee factory in certain country. you would not choose ethiopia or kenya due to communication and distance problem. So choose mexico, Guatemala or Costa Rica.

    3. ask them for sample for you to test and approve.

    4. Since you want your own name and design for the coffee label, you can have your own designer do the design or let the factory do it for you with less cost. (of course, you need to check the name search for USA)

    5. factory will give you the minimum q'ty you need to buy.

    6. you need to pay about 30% down payment by wire transfer to the factory. (of course, you must choose reliable factory with proven track record)

    7. once your design is ready, they will send you a sample for you to approve.

    8. after your complete order is ready to be shipped, they will again send you the final sample for you to check the quality of printing of the bag, artwork...etc plus coffee quality. I assume that you will buy the roasted coffee. for green coffee, they do not package them in 12 or 16oz bag. they sell buy 100 lbs or 60kgs or 69kgs. then you need to bring them to USA, have someone roast them, package them...etc. this is only good for big roasters, not for small individual company.
    BTW, the bags will be valve bag, so that freshness will be okay for six month at least. or if you want ground coffee for some of them, they will do the vacuum pack for you. The cost of valve or vacuum is about the same.

    9. before factory ship out your goods, you will wire transfer the 70% balance to them.

    10. you can arrange your own shipping company to pick up the goods and ship out to you or factory can arrange this for you also. Since most of factories have relationship with a lot of shipping companies, depends on location and countries, they can choose the best qualified company for shipping and customs clearance when it gets to the harbour.

    I might have forgot to mention few small things, but generally, this answers your question.
    BTW, Average cost matter, i can also give you answer on this, but it will be very very long answer and complicated. No one will be interested in reading.
    Thank you! Great information! I am interested in the average cost. Please send me a PM if you don't want to post here.

  4. #4
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    let me give you some idea also.
    min q'ty can be 100 bags of roasted coffee beans. one bag is 100 lbs. normally, roasted coffee bean is packed with 12oz of roasted coffee.

    so min q'ty per order is 1,333 of 12oz bags.
    the unit (per bag) cost that you can buy is around $4.40 range. this price is EX factory. (that means it is the price at the point of where the coffee factory is at). from this pricing, you need to add freight (inland trucking from Coffee factory to the port in that country into vessel + ocean freight + import duty (which is Zero in case of USA) + inland freight from USA port to your place). probably, it will be around $800 to $1000 or so.

    so Average total cost (very approximate) will be 1,333 x 4.40 + $1000 = $6865.20 plus few other minor costs.

    BTW, the cost is calculated by ...around 80 to 82 point Strictly Hard Bean (Export standard), either vacuum or valve bag packed.

    hopefully this helps.

  5. #5
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    Quote Originally Posted by ensoluna View Post
    min q'ty can be 100 bags of roasted coffee beans. one bag is 100 lbs. normally, roasted coffee bean is packed with 12oz of roasted coffee.
    Sorry My bad. it should be 10 bags (one bag = 100 lbs) for min order. but this is only our company case. I do not know about how many other company requires for min q'ty. again, sorry for mistake.

  6. #6
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    I thought it was somewhere around this. Thank you for confirming. Sounds like a reasonable basis.

 

 

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