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Flavored Coffee

gazebocoffee

New member
Mar 2, 2006
6
0
Why is it that so many coffee shops do not charge any different for flavored coffee? It costs more to buy and yet they continue to charge the same as their house blend. Margins being what they are it seems to me that flavored coffees are diluting those margins if not priced higher.
 
Normally you can have a flavor base that is less expensive than even of your blenders, but usually not enough to offset the extra cost (not just the flavoring, but the process steps) of flavored coffees. Of course the single origins are going to be more expensive, but then customers expect that.

The thing is, pricing is a choice for the seller. You have to do what makes sense to your customers. While customer are going to expect an Etheopian Yigarcheffe to cost more than French Roast, different pricing levels for coffees that are not as well differentiated becomes an annoyance for customers. It may also be impossible to control if the customer gets to bag their own coffee - just what was in the bag? This isn't like macaroni vs. pumpkin seeds in a health food store bulk display.

If you do the math, you'll find that you make more money by selling more coffee. Most coffee is at the base of the pyramid - the hazelnuts, breakfast blends, french vanillas, house blend, etc. That is the stuff that needs to move to keep you in business. Individual price points on the high end coffees can help you differentiate, but simple pricing on the base coffees can help you sell more.
 
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