Confused on wholesale coffee pricing

[mizaajcoffee]

Hey folks,

I’ve been trying to look for green bean importers to buy from in bulk so that i can sell roasted whole beans in bulk to some local middle eastern shops. However im seeing prices per lb are not lower than $5 for green beans and some of these shops are getting their roasted coffee for $7lb in bulk. Am i just not looking for the right importers? What am i doing wrong?

 

[FWBCoffee]

Where is the coffee they're getting from? Also is it arabica or robusto? Also, what grade are they getting from those places? All of all of that is factored in as well as how much the roaster is able to roast at one time to keep the labor cost of roasting per pound low

 

[mizaajcoffee]

Another local roaster, they usually deal in blends so most likely the customers dont know the answer to that question. What do you see is the average whole price for roasted whole bean blends?

 

[FWBCoffee]

Another local roaster, they usually deal in blends so most likely the customers dont know the answer to that question. What do you see is the average whole price for roasted whole bean blends?

Four colombian green somewhere in the 3 to 4.50 range. That's also single origin. Excelso. If you have more of a generic colombian it'll be less. Add on about 1.25 /lb for a contract roast.

For kenyan tt thru ab 3.50 to 5.65. Add the roast cost on to those. Again these are for a single origin.

Then, you have other low costs Like shipping green to you et cetera if theyre not local.

I know places like rny will jack up their pricing a bit online. A lot of times if you talk to a rep they can get you a discounted price

 

[mizaajcoffee]

Okay cool, i do only blends so it makes it a bit tougher for me to find what i need. Im in florida so my best bet is dupuy jacksonville to get low shipping costs, so then i should def talk to reps to lower whatever i see online, great advice!

 

[littletaoist]

The harsh reality is that you’re likely looking at 'Specialty' or 'Boutique' importers, while those shops are buying 'Commodity' grade coffee. At $5/lb for green beans, you are buying premium beans in small volumes (bags/boxes).
Those shops getting roasted coffee for $7/lb are buying from industrial roasters who purchase by the container load or full pallets of commercial-grade (80-82 score) beans. Their green cost is likely closer to $2.00–$2.50/lb.
If you want to compete on price, you need to find commercial importers (like Olam or Volcafe) and buy at least a full 60kg bag (132lbs) at a time, and even then, your margins will be razor-thin after roasting weight loss (~15-20%). You can't beat them on price; you have to beat them on freshness or a specific 'Middle Eastern' profile they can't get elsewhere...

 

[mizaajcoffee]

The harsh reality is that you’re likely looking at 'Specialty' or 'Boutique' importers, while those shops are buying 'Commodity' grade coffee. At $5/lb for green beans, you are buying premium beans in small volumes (bags/boxes).
Those shops getting roasted coffee for $7/lb are buying from industrial roasters who purchase by the container load or full pallets of commercial-grade (80-82 score) beans. Their green cost is likely closer to $2.00–$2.50/lb.
If you want to compete on price, you need to find commercial importers (like Olam or Volcafe) and buy at least a full 60kg bag (132lbs) at a time, and even then, your margins will be razor-thin after roasting weight loss (~15-20%). You can't beat them on price; you have to beat them on freshness or a specific 'Middle Eastern' profile they can't get elsewhere...

Thank you for the transparency. I've been a roaster for years but new to buying green beans. I'm based in Florida and so I was looking at many importers that have many warehouses in Jacksonville. However I think they are as you describe them with premium priced green beans. Obviously was looking at local importers to save cost on shipping. I have two questions for you @littletaoist

1. I've been hearing that I'm lowering my quality because I'm looking for commercial grade, but my argument is that I specialize in blends and so the blends I use kind of complete each other, Am I going about this the wrong way? Also what commercial grade importers would you suggest besides the ones you mentioned?

2. Seeing that these importers probably won't be close to my state and so I may have to pay for shipping, would it be worth it to buy commercial grade and pay for shipping or would it be pretty much the same but better quality if I buy from one of these specialty importers and do a pickup (Drive to the warehouse is about 3 hours)