Rising bean prices

[Rowley]

The last few year's coffee crops have helped everyone enjoy some cheap coffee. From roasters buying green beans to those at home buying a pound of robusta, everyone enjoyed the benefits from a high crop yeild and low wholesale prices. This year the coffee farms have less beans to put on the market and this is causing prices of coffee internationally to raise across the board.

I am interested to hear how everyone here who works in the coffee business is currently planning to deal with the sharp increase of coffee bean prices this year.

[Coffee Guy]

You're right green beans were at a low for the last few years. And now prices are going through the roof It's unfortunate, but sometimes you have to increase prices. It's the cost of doing business. No one likes to increase prices, but as a business owner when you take on increases time after time and tow the line for as long as possible, eventually you to have to pass some of the increase on to the customer. In this industry some get the impression that if the coffee is more expensive then it's better, and in other cases some feel that if their coffee is cheaper in cost then they are making more money. Some times it's hard to find that happy medium. As for how to handle the price increase issue? Just be honest with your customer and let them know why you are increasing the price, and remind them why they are with you and thank them for supporting you.

[Kinerry]

Traditionally there is a frost every 25 years

Prices will gradually go up and up, and then a huge raise in price...and then a fast steady fall and it starts all over

[JavaJ]

Kinerry is right, it is very cyclical. Anyone who doubts that should read Uncommon Grounds by Mark Pendergrast.

As far as responding to it, it really depends on how long you have be open, (or the last time you raised prices), what your competition is doing, and what you can afford to do.

On that note, not everyone has enjoyed the low prices. It has been very destructive to the communities that produce coffee, and the current rise in prices is a direct result of many having to abandon their farms. Prices have been at historical lows for years, and the current prices, when adjusted for inflation, are still historically very low. In a nutshell, we'll all be fine.

-JavaJ