20 Years Tells Us… “The Price Should Be Right”

SGC-Bulk-CoffeeTwenty 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.

The Business of Coffee

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.money-bean-guy2


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. 

 

Customized Savings Assessment Can Save You Time And $1000s Per Year

money-bean-guy2To help you save the most on coffees and your favorite specialty beverage brands, we have developed a Customized Savings Assessment and Custom Price Grid as part of our new Everyday Savings Program

To find out how much you can save, the process starts as a conversation with one of our specialty coffee industry professionals to discuss what items you use, usage levels, ordering frequency and other factors that impact your usage, ordering, lead times, storage concerns, and more. This assists us in presenting options to you on how to best combine orders and alter them for the optimal savings over time, typically a monthly basis. We then create a Custom Price Grid to demonstrate how our Everyday Savings Program can help you save time and $1000s per year by combining orders, vendors and frequency of ordering. Shops that serve as few as 50 specialty beverage items per day can qualify. Based on the size of your order and specific items, your savings can range from 3% to over 10%!

Here’s an example of how the Everyday Savings Program can save you time and money:

Customized Savings Assessment

Our per order savings levels are as follows:

  • $495 (Free Freight)
  • $750
  • $1,000
  • $1,500 (Pallet Savings)

Order size is based on the Standard List Wholesale Price as reflected in the most recent Stockton Graham & Co. Wholesale Price List, which you can request by calling 800.835.5943.

Pallet Savings is based on LTL or freight line deliveries.  Ancillary charges assessed by the freight carrier are the responsibility of the customer.  If you are not able to accept freight deliveries, please contact Customer Care or your Sales Associate to determine your customized Pallet Quantity Savings.

Call 800.835.5943 or click here to fill out the form to request a savings assessment and custom price grid, and start saving today!