November 27, 2012

Turn Customers Away

When you start a company, it feels like you have to take every order a customer is willing to give you, no matter how small. But when you start getting $10,000 orders, you should be turning away the $1,000 ones. 

Do the same thing with the $10,000 orders when you start to get $100,000 contracts. 
Making a small sale generally takes as much effort as making a big sale - except that the small one pays a lot less.

Coffee at 40-60 US$/Kg

The price is actually half of that, Ex-Works, when it's roasted and packed. On the doorstep of the packing plant, but with transportation, import taxes, sales profit, etc., the price is 40, if not 60 US$/kg.

The question is; is it Value for Money?
If you flush it down, cup after cup, without paying any attention to flavor and aroma, probably not, but if you sit down with good company and enjoy it, probably it is.

If you can open Google Maps on your cell phone, and see the exact location of the Fazenda where it was grown, probably it will make the coffee even more interesting.

If you know there is only 3.000 kg's available for the whole world, of the coffee you are drinking, and that you may have to wait one year to enjoy the same coffee again, I think it is value for money.

Is it a market?
When I go to a coffee shop, I never go to the ones having the plain, boring coffees. I don't know how much you pay for a cup, in a coffee shop, but when at home (that is in Norway), I pay US$ 5,30 for a 200 ml cup of coffee (sometimes I get a free refill, unless I bought the coffee in a convenience store like 7-Eleven).

To make a 200ml cup of coffee, it would be normal to use 12 grams of coffee. The cost is, if the price is 40 per kg, 0,48 US$ per cup. If I don't include the 25% sales tax, the cost of the coffee used is around 11% of what I pay.

For a coffee shop it is probably better than marketing, to use some cents more on the coffee.

To use at home?
If I get visitors, which I do, sometimes, it's always interesting to serve a new coffee and let them enjoy the history, not only the coffee itself.

The most important ingredient when you want to enjoy a good cup of coffee, is good company!


Delicious medium roasted Gourmet Coffee. Medium Roast, Washed Arabica from Minas Gerais in Brazil. In my opinion, The World's best Coffee.