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Date: 01 Jun 2007 18:35:47
From: Harold Finkle
Subject: Wholesale coffee bean sales suggestions?
Hi,

I own two retail coffee houses in Gaston county, NC and we purchased a
coffee bean roaster to cut the costs of the "middle man." Our roasted
coffee has become very popular and we have indeed saved money, but the
roaster just sits there, and the object of any asset is to produce!!

Has anyone successfully added wholesale as a supplement to their
existing retail? I'd like to get some advice as to best way to get
started. I'd like to offer it to hospitality, convenient stores,
restaurants, and other coffee houses.

What marketing has worked best in attracting smaller wholesale clients?
I say smaller since I only have a 2 kilo ambex roaster, but it can roast
up to 60k lbs a year at full production! So, you can see I'd like to
get more use out of it.

Thanks!
Harry

http://www.baristaforum.com
Talk about coffee! retail, wholesale, b2b, home coffee aficonados,
professional baristas welcome!




 
Date: 02 Jun 2007 23:53:53
From: The Other Funk
Subject: Re: Wholesale coffee bean sales suggestions?
Finding the keyboard operational
Harold Finkle entered:

> Hi,
>
> I own two retail coffee houses in Gaston county, NC and we purchased a
> coffee bean roaster to cut the costs of the "middle man." Our roasted
> coffee has become very popular and we have indeed saved money, but the
> roaster just sits there, and the object of any asset is to produce!!
>
> Has anyone successfully added wholesale as a supplement to their
> existing retail? I'd like to get some advice as to best way to get
> started. I'd like to offer it to hospitality, convenient stores,
> restaurants, and other coffee houses.
>
> What marketing has worked best in attracting smaller wholesale
> clients? I say smaller since I only have a 2 kilo ambex roaster, but
> it can roast up to 60k lbs a year at full production! So, you can
> see I'd like to get more use out of it.
>
> Thanks!
> Harry
>
> http://www.baristaforum.com
> Talk about coffee! retail, wholesale, b2b, home coffee aficonados,
> professional baristas welcome!

I am still trying to find the best method but I'll share my expeeriances.
Forget about small cafes. Most of the time they are getting their coffee
equipment free or cheap in exchange for buying their coffee from a
distributor. You might be able to place a specialty coffee or two in a high
volume cafe as an addition to their regular coffees.
I am hitting the high end restaurants and country clubs. It's hard to get
them to spend more on coffee. They will spend more for top quality beef but
it's like beating my head against the wall to get them to spend a penny more
per cup of coffee.
I try to get the name of the manager or head chef before I call to try to
get an appointment. Nine times out of ten I can't even get to talk to them
much less set up an appointment. If I do get to see them, always bring a
thermos of fresh coffee. Get it in front of them ASAP and always leave
samples. If I can't get an appointment, I will just show up between lunch
and dinner and ask the hostess for the manager. This is usually a waste of
time but again, always leave samples.
One other suggestion is to try catering companies. We have one that does a
lot of high rnd parties.
Good Luck
Bob

--
--
Coffee worth staying up for - NY Times
www.moondoggiecoffee.com



 
Date: 02 Jun 2007 13:12:26
From: Steve Ackman
Subject: Re: Wholesale coffee bean sales suggestions?
In <rb18i.21159$KC4.12843@bignews6.bellsouth.net >, on Fri, 01 Jun 2007
18:35:47 -0400, Harold Finkle wrote:

> since I only have a 2 kilo ambex roaster, but it can roast
> up to 60k lbs a year at full production!

I guess it depends on what you consider full
production. 50 weeks x 5 days x 8 hours = 2000 hours.
At that usage, you're looking at a MAX (according to
the Ambex site) 20 lbs. input each hour.
20 lbs/hr x 2000 hours/yr - > 40,000 lbs input or
32,800 lbs output. (going on 18% weight loss since in
another thread you seem to indicate you roast fairly
dark).

Assuming your warmup, cooldown, cleaning and
maintenance time is also included in the "full time"
hours above, then you can reduce your output at least
5% for that. Now you're down to 31,160 lbs/yr.

If your roastor is also responsible for answering
the phone, doing inventory and ordering, or
interacting with customers or other help during
"roasting" time, then you can probably drop AT LEAST
another 5% off for those sorts of "overhead"
distractions, so that puts you down to 29,602 lbs/yr
output while paying a full time roaster. How much are
you paying him, and including all your other overhead,
at that output will there be any margin left... or will
you actually be losing money on every pound you roast?



  
Date: 03 Jun 2007 00:09:41
From: The Other Funk
Subject: Re: Wholesale coffee bean sales suggestions?
Finding the keyboard operational
Steve Ackman entered:

> In <rb18i.21159$KC4.12843@bignews6.bellsouth.net>, on Fri, 01 Jun 2007
> 18:35:47 -0400, Harold Finkle wrote:
>
>> since I only have a 2 kilo ambex roaster, but it can roast
>> up to 60k lbs a year at full production!
>
> I guess it depends on what you consider full
> production. 50 weeks x 5 days x 8 hours = 2000 hours.
> At that usage, you're looking at a MAX (according to
> the Ambex site) 20 lbs. input each hour.
> 20 lbs/hr x 2000 hours/yr -> 40,000 lbs input or
> 32,800 lbs output. (going on 18% weight loss since in
> another thread you seem to indicate you roast fairly
> dark).
>
> Assuming your warmup, cooldown, cleaning and
> maintenance time is also included in the "full time"
> hours above, then you can reduce your output at least
> 5% for that. Now you're down to 31,160 lbs/yr.
>
> If your roastor is also responsible for answering
> the phone, doing inventory and ordering, or
> interacting with customers or other help during
> "roasting" time, then you can probably drop AT LEAST
> another 5% off for those sorts of "overhead"
> distractions, so that puts you down to 29,602 lbs/yr
> output while paying a full time roaster. How much are
> you paying him, and including all your other overhead,
> at that output will there be any margin left... or will
> you actually be losing money on every pound you roast?

Harold, run your numbers again. Using a YM10, I can do ~ 50 pounds an hour.
Add in warm up, cool down and clean up and I end up at 300 pounds in a day.
I use 20% as a loss figure so thats 240 net. I did have one 400 pound day
but I hope I don't have to do that again.
Plus I tear down and clean all the fans and motors every 3 months or so.
That shoots a whole day. I haven't had a fire yet and don't want to.
If I roasted 200 days a year, I could put 60K pounds a year into the roaster
but I have the 10 Kilo machine.
Bob
--
--
Coffee worth staying up for - NY Times
www.moondoggiecoffee.com



   
Date: 03 Jun 2007 09:52:12
From: Steve Ackman
Subject: Re: Wholesale coffee bean sales suggestions?
In <9Fn8i.1508$WE4.954@trndny01 >, on Sun, 03 Jun 2007 00:09:41 GMT, The
Other Funk wrote:
>
> Using a YM10, I can do ~ 50 pounds an hour.
> Add in warm up, cool down and clean up and I end up at 300 pounds in a day.
> I use 20% as a loss figure so thats 240 net.

Is that including some fudge factor for spillage,
or is that strictly roast loss? If the latter, it
sure seems high to me.

> I did have one 400 pound day but I hope I don't have to do that again.

I fed the IR12 over 700 lb. one day. That kind
of day definitely makes an impression.


    
Date: 03 Jun 2007 14:38:57
From: The Other Funk
Subject: Re: Wholesale coffee bean sales suggestions?
Finding the keyboard operational
Steve Ackman entered:

> In <9Fn8i.1508$WE4.954@trndny01>, on Sun, 03 Jun 2007 00:09:41 GMT,
> The Other Funk wrote:
>>
>> Using a YM10, I can do ~ 50 pounds an hour.
>> Add in warm up, cool down and clean up and I end up at 300 pounds in
>> a day. I use 20% as a loss figure so thats 240 net.
>
> Is that including some fudge factor for spillage,
> or is that strictly roast loss? If the latter, it
> sure seems high to me.
>
>> I did have one 400 pound day but I hope I don't have to do that
>> again.
>
> I fed the IR12 over 700 lb. one day. That kind
> of day definitely makes an impression.

20 % represents spillage both pre and post roast, weight loss in roasting
and the fact that I make the math easy for myself. Just roasting is very
close to 20% for espresso and french roast. Maybe 18% for Sumatra and
Harrar. 15% for Columbian is closer to accurate.

Another factor I have to deal with is that we are in a main street retail
area with residences all around us. Not all the neighborhood like having a
coffee roaster upwind from them. Also, the Doctor directly next door "hates"
the smell of coffee. So I try to schedule my roasting as to annoy as few
people as possible. No early morning roasting, no all day roasting unless I
really need to. I can't wait to be able to afford a commercial space to move
the roasting to. I would keep a small roaster in the store and do a few
batches there.

Bob
--
--
Coffee worth staying up for - NY Times
www.moondoggiecoffee.com



     
Date: 04 Jun 2007 10:36:15
From: Steve Ackman
Subject: Re: Wholesale coffee bean sales suggestions?
In <5oA8i.1017$Uy4.916@trndny09 >, on Sun, 03 Jun 2007 14:38:57 GMT, The
Other Funk wrote:

> 20 % represents spillage both pre and post roast, weight loss in roasting
> and the fact that I make the math easy for myself.

I use that for planning, sure. "I need 10 lbs. of
French roasted X, so I need to weigh out 12.5 lbs. green."
For city/full city, "I need 10 lbs. of X, so I'll roast
12 lbs."

> Just roasting is very close to 20% for espresso and
> french roast.

Your FR and espresso are darker than mine then.

> Maybe 18% for Sumatra and
> Harrar. 15% for Columbian is closer to accurate.

Last Harrar I did was 14.6% and the last Colombian
was 16.8% (not roasted to my preferences, which would
be closer to 16 even). Sumatra, yeah around 17-18% is
where I like most of them; also most espressos.
Not that roasting weight loss can really substitute
for roast degree, but to the extent that it can...

> Another factor I have to deal with is that we are in a main street retail
> area with residences all around us. Not all the neighborhood like having a
> coffee roaster upwind from them. Also, the Doctor directly next door "hates"
> the smell of coffee. So I try to schedule my roasting as to annoy as few
> people as possible.

Mount a wind vane on the roof, and only roast when
the wind direction is right? ;-)