Sales Decline?

ourcoffeebarn

New member
Nov 8, 2004
174
1
Wisconsin
Our coffee sales have stayed about the same or slightly increased :grin: over the last 6 months, but our equipment sales have dropped by at LEAST 75% :cry:

Have any of you that sell both equipment and coffee had similar drops?
Why did my traffic increase and sales go down? :(
Frustrating!!!
Any feedback will be welcome!
 
I was wondering when someone would post something like this- many of the other forums around the place have been debating and discussing the effect of the recession in the US for a while now. In brief we hslow down in coffee sales, first 1/2 was also good for machine sales. However, obviously we are like on the very end of the tail of this thing- meaning the slow down globally has not reached us yet.

Interestingly, reading about the great depression recently, coffee was one of the very few sectors that did not suffer a slum in the 1930's. Iwould not say coffee is recssion proof- but I guess those of us who drink coffee (and pay for it) probablywould cut back on other luxuries before going cold turkey. But 1 thing that we may see, and maybe ourcoffeebarn has hit the nail on the head here- perhaps docket averages will drop a bit.

One interesting debate I have been following on another website is about whether now is a good time to be opening a cafe/coffee shop- especially with all the negative data pointing to higher unemployment, equity issues, dropping retail sales, foreclosures....etc. The Starbucks closures (600 in the US and 2/3rds of all stores in Australia) has got many potential investors and/or opperators nervous. Their (Sbux) poor second 1/4 results have also fuelled the fire. However... I think many of that companies problems are related more to opperational issues and perhaps consumer changes than to the economy. At the same time as SBUX was announcing its first 1/4ly loss since 1994, Peets Coffee was announcing a solid profit and increase in sales.

I guess, hopefully rightly,that most of us are still doing fine with coffee and cafe sales- fine meaning growth not stagnant. I would think that yes, the equiptment side of the business may be a little flat at present- due to perceived uncertainty amngst new entrants into the market and a wait and see from established opperators. However I would think the US in particular has a long way to go until the coffee market reaches saturation. I dont know the numbers in the US, but in Italy there is 1 cafe/coffee shop for every 400 Italians. Coffee has ALWAYS been a very big part of American life (Mark Pendergasts "Uncommon Grounds" is an excellent insight in to just how important a part coffee played in the country last century- worth a read :grin: )
 
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ourcoffeebarn

ourcoffeebarn

New member
Nov 8, 2004
174
1
Wisconsin
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My customers have seemed to change from ordering 2 pounds at a time to more of them ordering one 5 pound bag of roasted coffee, that has free shipping :D I attribute this to people saving money by buying in larger quantities to get the per pound price as low as possible. I also have not been able to keep my "Ready to Ship" roasted coffee section stocked very well with more people ordering from it and the fact that I have been roasting and bagging into 5 pound bags more, instead of short batches and 1 pound bag orders.

I hope the US market starts seeing the cost savings of Home Espresso Machines vs StrBks soon! Better coffee (with some practise) and cheaper too!
 

ElPugDiablo

New member
Jul 16, 2004
991
0
Hartford and New Haven, CT
Alun_evans said:
At the same time as SBUX was announcing its first 1/4ly loss since 1994, Peets Coffee was announcing a solid profit and increase in sales.
Neither Starbucks nor Peets, but I am not seeing any slow down in Connecticut. Many eateries and coffee places are busy as usual. I don't sell any equipment, but high end tea pots that I sell are still going out the door at steady pace. And I am not seeing people trade down to drip from $4.00 espresso drinks....Although Starbucks did close 5 ridiculously located shops in Connecticut those near me are still printing money for Howard.
 
Just out of interest, I read sometime ago that SBux made almost as much out of real estate than they do out of retail. What % of the stores closed were in rented space I wonder vs retail space owned by the company? On another note, I am s little P.O'ed with the company...they have raided 1 of my small origins and brought up nearly all of the very, very small quantity of coffee grown there. I am figurng it is most likely SBux Japan, who have a quota of "interesting and unique" origins you would not normally see being sold in the US, Oceania or Europe. I am gonna have to fly to this locale and sort it out- although it has somewhat stumped me- did not see it coming :evil:
 

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