Marketing and Competition

[Redswing]

My question right now is: how can you approach a coffee shop that is leasing all of their equipment along with it's regular service from their bean supplier? The owner is reluctant to change because he's bought the suppliers line that you have to have his dependeble service plan and pricey machines (and mediocre coffee). Anybody ever won a shop like this over? It would be huge if I could get this shops business (not just because poison pointed it out, but because they are my only local option), so I would even consider buying equipment for them if that's what it would take and it made sense/cents (haha).

 

[John P]

Redswing,

Explain the difference from both the perspective of dollars and cents, and positioning.
Either they "get it" or they don't.

Never chase. Make them come to you, and meet your standards in every facet. If they will not, they shouldn't be using your coffee.
They need to buy their own equipment. Don't get into that game. Either they are willing to do what it takes to use/have excellent coffee/espresso or they are not.
Selling just for the sake of selling is foolish. Have standards. Have principles. And live by them.

 

[expat]

Have you tried InterAmerican Coffee. Good pricing and service here in Europe. I see they have U.S. offices on East, West, and Gulf coasts.

Oh, I did mean to comment on getting into the equipment per Redswing's and JohnP's post.

My experience with these folks is as John said -- explain the difference. Either they get it, or they don't. And they usually don't. The ones who do get it and buy from me still buy from their equipment supplier to keep their equipment contract in force but they are rare folks.

And as to supplying equipment, is that really a business you want to be in? Because when you go down that route you're really in the equipment and coffee is secondary.

When the machine breaks on a Saturday night at 11p guess who is going to get a call? The coffee shops and hotels I talk to who have equipment on lease for "free", if they buy substandard coffee at a jacked-up rate, say it is all about the service. They are happy to serve a mediocre cup of coffee as long as they there are no service interruptions. That's their mindset and why most won't 'get it'.

 

[poison]

i don't mean to ransack the marketing/competition thread, but this conversation is super applicable for me right now. poison, i picked up two bags from royal coffee in oakland, ca, averaging $2.75 a pound (accounting for 15% shrinkage, that's $3.30 a pound, hence my earlier figure). did i choose too inexpensive of beans? the people at royal told me these were great coffee choices, a guat and an ethiopia.

Too inexpensive? Only you can say. It depends on 1) what your skill as a roaster turns it into, and 2) what your intended goals are. Royal is great, but I've have received recommendations from them that I was not happy with; they don't always know what you are doing, and I'd assume most people simply want something shaped like a bean, called coffee, that they can stuff in their roaster and turn brown. Moral? Always cup coffee before you buy. If it doesn't taste good, don't buy it.

There are other suppliers I will buy from without cupping, occasionally.

i guess i just don't think people around here would pay $14-$18 a pound...but if they would, how do i find them? by getting the local atmosphere driven coffee shop to use and sell my coffee? (one business in town is brewing and selling retail, looking hard for more, a website is on it's way, and i gave 12 oz bags to pretty much every serious to semi-serious coffee drinker i could think of, introducing my company, asking them to spread the word)

Yes, that's a huge start. It's a great endorsement, and great publicity. You could also set up a booth at a local farmers market, if you have one. I did that for a while, thinking I would sell whole beans, but people wanted cups of drip, so I bought a cone filter stand and brewed 100-150 cups in 5 hours, to order, and charged $1.50-3/cup. I sold beans too, and found that bringing 1/2lb bags was better than 1lb, as the price of entry was lower, encouraging people to try it. I also found that when i brought my awesome 100% shade grown, bird friendly, organic Kona and sold it for $35, or $3 a cup, I always sold out. That price is cheap, Peets Kona is $25 for 1/2lb, but still, it's interesting to see how price affects perceived value. 'Oh, it's expensive, it MUST be good!'

Sell at other local events. Got a local bike club (cycling or motor)? Invite them to start or end their rides at your place, and give em a 10% discount. That could be 30-50 guys, in LA. You sell, and spread the word.

one more consideration is the reality of my skill set. i've only home roasted on a tiny roaster for about 4 years, and now i am on a new machine, with little formal training. i do plan to take the willem boot on-line course soon.

hungry for suggestions...

Cut the noise: does your coffee taste good? Great? Better than anything else in the area? Do others agree (who are not family, lol)? If the answer is 'yes', then don't be shy. I challenge anyone else to grab the trier and do better than you. Roasting isn't easy, and roaster masters don't grow on trees. It's a very specialized art.

If you aren't aware, the owner of Blue Bottle Coffee started roasting in his kitchen, on a pan in his oven, in the early 2000's. A couple years ago, he got a loan from a venture capital firm in the Silicon Valley for....wait for it...$15-20 million. The company is worth millions, of course, but this guy was a failing musician in his 40's when he started, with zero coffee experience.

See where I'm going? :twisted:

 

[prairieguy]

Pbyrd, i'm not an expert but to me just giving your new contact a sample bag of coffee may seem like a good idea but in reality they will not have any attachment to it or your business. I would suggest setting up another time in which you would come by their store or home and actually make them a pot of coffee, your way, the way you feel it should be done, that way you build a stronger relationship and a greater probability of having a new client. Again just my thoughts.

 

[richardo]

Great point Pink

 

[Pbyrd]

Hi Prairieguy, thanks for the feedback! I believe this is a very good idea and I plan to give it a try. I'm still about a month from being ready to enter the market. I made a last minute change to the company name but should have the logo ready this week. Slowed me down a bit. The logo will allow me to finally get all of my other marketing material finished. I'll also be ordering some new green beans this week so it will be a fun week for me I'll plan to post on my experience in presenting my coffee offerings. Thanks for your input and advise. Best Regards.