Ernie1 Am I missing something? That seems mighty pricey for a blended coffee.
I looked at the constituents of the Blend. I actually have one of the coffees, the Honduras Guacamayas and yes it is a good coffee, I am aware of the other coffee. The pricing is quite aggressive IMO, with a larger than usual markup on the coffees.
The problem with coffee is often the markup…they can get away with fairly high margins on cheaper coffees, but as the coffee gets more expensive, that same markup hurts the customers wallets a lot. A roaster has limited ways to grow profits (not % profit, but money profit).
- Roast lots more and sell lots more
- Roast the same amount of better coffees and sell for more
The first means growing the operation, more people bigger roasters, usually cheap coffee and lots of it. The second method only involves increasing the cost of stock, the amount sold can be the same. Transitioning customers onto more expensive coffee.
The problem comes when trying to maintain the same % margin on the coffee, so usually they have to accept a lower margin, to make more actual money.
