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  1. #1
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    Question Profit Margins Selling Coffee Beans Online

    Hello everyone! New here, and I am in the process of creating a website selling whole and grounded coffee to users on Amazon and via our website. I found a roaster who will take care of roasting, labeling, and packaging the coffee for us (doesn't include shipping costs). The beans are roasted in a unique process that provides a certain profile of coffee we are interested in. The quote we received from the roaster was $6.50 per 12 ounce of coffee (same price for all the different blends/skews we are using).

    Again, that's including the labels front and back, the 12 ounce package with a valve, roasting the coffee and packaging it. For anyone who is in the coffee business, what are your thoughts on the quoted price? Does it sound reasonable - too high or suspiciously low?

    Also, all in-delivered to the customer, we are looking at roughly 3 dollars gross profit per 12 ounce package (after shipping costs and additional fees). What kind of profit margins can one expect on selling coffee online? How does this compare to anyone else who is doing the same?

    Thanks in advance for everyone's input!

  2. #2
    BIC
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    there are thousands of on-line coffee roasters.
    you can google and check them out.
    for 12 oz, the price is from $12 to $18 range depends on the quality of coffees.
    of course, shipping is extra.

  3. #3
    BIC
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    Quote Originally Posted by WhyCoffee View Post
    True, but the range can actually be from $4 to $40. So it's really difficult to tell.
    well... there are geshas are being sold over $100 per 12 oz.
    and $4 per 12 oz for roasted beans? unless it is robusta from vietnam or 5 lbs of bulk buying, from local good roasters, you will not find $4 per 12 oz roasted beans.
    No decent quality roasters will actually make any profit selling at that pricing.

  4. #4
    BIC
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    Quote Originally Posted by WhyCoffee View Post
    Well, it's actually a pretty decent brand: https://www.amazon.com/Lavazza-Sinfo...83086069&psc=1
    whaaaaaaaaaaaaaaattt, ha ha ha.
    few things really worry me.

    such as full bodied dark roast. but the worst part being "blended and ROASTED IN ITALY".
    and selling via Amazon in USA?

    what did they do?! Mummified the beans?

    But "whycoffee" if you dare me to buy and try it out, I will certainly do so and post some bean photos, aroma info...even cupping profile information here, just for you whycoffee. ha ha ha

  5. #5
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    LaVazza is definitely a well known brand...so is Starbucks. Now about the coffee...LaVazza uses Robusta from Indonesia in this blend. If I am to believe what Sweet Maria's has posted as issues with coffee from Indonesia, I would imagine that one reason this blend is a dark roast is to conceal the off tastes in such a way as the average consumer would find that the flavor is in some ways different than Folgers and therefore consider it to be "good coffee". Just about any whole bean coffee that is ground prior to brewing will taste better than Folgers...imho...except of course for very stale beans....this really is bottom of the barrel and is actually part of why coffee producers operate with the help of labor below poverty level. Shame on LaVazza for even offering such substandard product.

  6. #6
    BIC
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    Quote Originally Posted by Mr.Peaberry View Post
    LaVazza is definitely a well known brand...so is Starbucks. Now about the coffee...LaVazza uses Robusta from Indonesia in this blend. If I am to believe what Sweet Maria's has posted as issues with coffee from Indonesia, I would imagine that one reason this blend is a dark roast is to conceal the off tastes in such a way as the average consumer would find that the flavor is in some ways different than Folgers and therefore consider it to be "good coffee". Just about any whole bean coffee that is ground prior to brewing will taste better than Folgers...imho...except of course for very stale beans....this really is bottom of the barrel and is actually part of why coffee producers operate with the help of labor below poverty level. Shame on LaVazza for even offering such substandard product.
    thanks for more detailed info, MP.
    I take back the "dare" thing. unfortunately and fortunately, Robusta isn't my thing.

  7. #7
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    Quote Originally Posted by BIC View Post
    thanks for more detailed info, MP.
    I take back the "dare" thing. unfortunately and fortunately, Robusta isn't my thing.
    It is always wise to stop and think before you accept a dare. Now-a-days it's okay to reconsider and drop the dare. That way you won't do anything stupid, just because someone dared you to.

    In the past, several people on this Forum have learned a hard and disappointing lesson about buying coffee on Amazon. The lesson is: Don't do it.

    ~ Rose

  8. #8
    BIC
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    Quote Originally Posted by PinkRose View Post
    It is always wise to stop and think before you accept a dare. Now-a-days it's okay to reconsider and drop the dare. That way you won't do anything stupid, just because someone dared you to.
    ha ha ha. I am an Amazon prime member which means I can buy and try out the coffee and if it is not good (for whatever reason), I can just return back to Amazon for full refund (no return shipping charge for Prime member).

    At least, I can see a lot more traffic in our forum and good to see many are coming on board and getting involved. that is a good thing.

  9. #9
    BIC
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    Quote Originally Posted by PinkRose View Post
    It is always wise to stop and think before you accept a dare. Now-a-days it's okay to reconsider and drop the dare. That way you won't do anything stupid, just because someone dared you to.

    In the past, several people on this Forum have learned a hard and disappointing lesson about buying coffee on Amazon. The lesson is: Don't do it.

    ~ Rose
    Hi Rose. what the heck!
    I will buy that coffee and make some postings here.
    Since I won't lose any money (if it is really bad as Mr.Peaberry says), I will return it anyway.
    but it will be interesting for me and for this forum.

    anyway, thanks for your kind concern. Rose.

    PS: without any risks in life (at least calculated risks), the life would be like drinking distilled water all your life. We certainly would not want that, would we? ha ha ha

  10. #10
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    Peeps... back to the OP question. $6.50 wholesale/private label is on the lower end of the price spectrum for Specialty Coffee. It really depends on the quality and cupping score of the coffee. Regarding profitability, it really depends on the channel you are selling through and your internal costs. Take a look at Amazon's fees structure before you go too deep into this...

 

 
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