Twenty Years Tells Us: The price isn’t always the “price.” In other words, the cost of the product doesn’t reflect the value of what you’re providing. There are lots of other factors that go into the true value of your product including: the environment you provide, the expertise to craft the product and the quality of service. The menu price of the item should reflect these different aspects.
Setting a price for your product can be difficult. You want to give your customers the best price possible while also being fair to yourself and your employees. The ideal price reflects the quality of the product which includes the service provided by your well trained staff and the unique ambiance of your store.
To help you find the best prices for your store and customers, we’ve outlined a quick five point “how-to”:
1. Do not engage in a race to the bottom price After evaluating your competition, you may notice that some are able to offer very low prices on their product. Although you may feel compelled to rush and change your menu, take a moment to consider other factors apart from price. Charge a fair and competitive price, because you are giving the customer what the competition cannot: quality, service and support.
2. Your Pricing Should Reflect the Quality You Serve If you are serving up handcrafted, quality beverages then you are already ahead of the competition. Even the big chain cafés aren’t serving fresh coffee due to how they set up their supply chains. Your menu pricing should reflect the quality you serve and should be competitive, or maybe slightly higher than the coffeehouse chains.
3. Keep Your Ideal Customer in Mind You want to consider your target audience; that is, your ideal customer. Trends suggest that lower prices may be perceived by consumers to indicate inferior products or cut-corners. For example, an underpriced cup of gourmet coffee might be overlooked by a customer looking to pay a bit more for a better product. Underpricing may cause undervaluing.
4. Take Calculated Risk Take a leap of faith and see what happens. Examine factors such as average ticket price to see how your customers are spending and what products are most popular. Consider your competition, product quality and your target customer.
5. Be Confident and Ready to Answer Questions If you haven’t changed your menu prices within the last year, it may be time to do so. Be confident in your decision, ready to answer questions about the changes and ready to continue offering better service than anyone else around. You may have some disgruntled customers, but overall your business will be healthier.
We hope these tips help you Build Your Business. If you have any questions or want to discuss menu price concerns, give your Customer Care Associate a call at 800.835.5943.
One of the perks of spring is spending more time outdoors. To say “Thanks” to Mother Nature, do the responsible thing and make an effort for your shop to be a little greener. Nowadays, an ecofriendly lifestyle can be found almost anywhere, even in your coffee shop. “Green cafes” are increasing in popularity all over the country, and it is a great way to attract customers by showing them that you are making an effort to help make the environment better for everyone.
For those who like the idea of going green but, think it will require a lot of extra time, effort and money, think again. Going green is not only beneficial to the environment, it can be done at little to no cost or extra effort to you. Here are some helpful tips on how to keep both the environment and your wallet green.
Offer Stockton Graham Coffees Several of Stockton Graham & Co.’s coffees are roast-to-order sustainable coffees. Sustainable coffees are certified or verified by an accredited third party as organic, fair trade, rainforest alliance, shade grown and more. Our sustainable single-origin selection is a great way to start exploring green coffees to add to your menu. We also offer blends that meet sustainable certifications as well, including a great organic espresso blend: Organic San Remo. To learn more about Stockton Graham & Co.’s sustainable coffees or inquire about samples, call your Customer Care Associate at 800.835.5943 today!
Switch to Paperless Invoices Stockton Graham & Co. has been offering paperless invoicing for several years now, and it is a great way to cut down on paper use. We can send you a digital copy of your invoice, at your preferred email, with one click of the mouse. If you are not already signed up to receive your invoices via email, be sure to ask your Customer Care Representative the next time you place your order. They will be happy to update your information, and help you reduce your paper usage!
Keep your Equipment Clean It may not be in your budget to purchase new high-efficiency appliances, but there’s no reason you can’t make sure the appliances you have are operating at peak performance. Keeping your grinders, blenders, brewers & etc. clean is not only safer, but it will allow your equipment to run much more efficiently. This also helps secure the longevity of your equipment, and to cut down on your power bill each month.
Reuse your Coffee Grounds As a coffee shop owner, you know how much coffee grounds are left over every day. The question is, what do you do with them? If you are just throwing them away, you can make them useful! Coffee grounds happen to be very acidic, so they make for a great fertilizer for acid-loving plants. If you have plants such as roses or azaleas in or outside of your shop, coffee grounds will help your plants look better than ever! Let your customers know about these gardening benefits and see if they wish to pick up grounds from your shop. You can also use the bulk bags that your coffee comes in, as means to give grounds away to gardening customers. Coffee grounds in your garden are also an organic way to deter some types of plant-eating bugs.
Offer Recycling With the amount of plastic and paper that you and your customers go through, make sure there are designated recycling bins in your shop. If you only have trashcans, you haven’t allowed your customers an opportunity to separate their trash from recyclables. Setting up recycling is extremely easy, and one of the most recognizable ways to show your customers that you’re doing your part for the environment. Make sure your recycling bins are clearly labeled so customers know exactly where to place their recyclables.
Have Discounts for Reusable Mugs or Tumblers To cut back on to-go cup trash, encourage your customers to bring in their own to-go mugs for filling with your coffee. Offer discounts on beverages for customers who re-use. This not only cuts down on your cup costs and water usage, it also helps reduce paper cups making their way into a landfill. Go further, and offer tumblers with your logo on them for refilling. Customers will be helping the environment and sporting your brand!
Save Electricity Consider replacing the light bulbs in your shop with more energy efficient LED bulbs. While they may seem pricey at first, these bulbs prove to last 25 times longer. This reduces your shop’s energy usage and time spent replacing old bulbs! These bulbs also contain no mercury or lead, so they are all around better for the environment. To save more energy, look into programming the thermostat in your store to save on HVAC costs. There is no need for comfortable temperatures when the store is not occupied.
Purchase inBulk Buying products in bulk is a great way to reduce cost and your carbon footprint. Instead of having your delivery truck make two deliveries, save all your orders for once and reduce the carbon that is released from the trucks. Stockton Graham & Co. encourages this by offering Free Freight on large shipments. Cups, straws and other shelf stable products are great products to purchase in bulk and take advantage of this great deal.
These are just a few ways that you can make your café a little “greener”. To many people, a green business is a responsible business and those are often the establishments they choose to offer their loyalty to. With little effort and cost, you can really make an impressive change that will allow you to feel better about making a positive impact on the environment and your bottom line. We have implemented many of these practices and more at Stockton Graham & Co. to help reduce waste and our carbon footprint. Contact us at 800.835.5943 to learn more about cutting down on your normal costs, and bringing new customers in the door!