Colombia has raised the price of Colombian Supremo by $.75 per pound of green at the port of entry.  This translates into a increased cost per pound of roasted coffee of $1.00.  This has all taken place in the last few weeks.  The crop was also short and demand from large companies has increased. 

This puts significant pressure on the price of Colombian and the price of the coffee’s that include it.  Flavored coffee contains all Colombian Supremo;  many of the most popular Kaffe Magnum Opus blends, such as House Blend contain significant amounts. 

Folgers has recently increased its price by 19% at retail.  So if you were selling at $10 per pound, the new price would be 12

We are working on options such as substituting other coffees – Mexicans, Peruvians and other milds are a possibility.

Our plan is to provide you with a choice: continue with Colombians at a somewhat higher price or move temporarily to a blend or a flavored coffee using a substitute.

Colombian Supremos are terrific balanced coffees.  Personally, my favorite blend is Special Blend and I consume 2 pots a day.  I plan to continue with the Colombians.

For flavored coffee, I’d consider moving slowly to the substitute.  That is, I’d mix the substitute with the flavored coffee, gradually moving the mixture to the new blend.  Kaffe Magnum Opus will make available both the existing blends and new ones with substitutes.

Bob Johnson, Founder

KMO is working on new means of communication that will enable you to Improve Your Profits and in the process implement new ideas.  If you want to particiapte in these efforts you are more than welcome.   Please contact me at bob@kmocoffee.com for details.

It is clear that this decade and perhaps this century requires more imagination, flexibility and dedication and committment to meeting your goals in the coffee business.  Sharing on the social net, or, Web 2  as it is also known, is a road you can travel largely researching and implementing change in your business, without a large investment in new technology. 

Please stay tuned.

Bob

Congratulations to Robert Kraeuter and the staff at Kaffe Magnum Opus for excellent service and high quality products.  These are harsh times and we did not expect to grow much, if at all in 2008, but the results are outstanding.  I believe there was a flight to quality and it fueled the sales growth.

Please contact Robert@KMOCoffee.com if you would like to share in the experience and growth.

2008 was a tough year because the Wall Street crowd dominated the commodities markets, including coffee.  While oil has fallen drastically, however, coffee is still high. With Starbucks and others closing stores it is surprising that the fall in demand is not driving prices lower. 

We all know too that the collapse of the banking system led by lousy lenders is effecting overall demand.  As the saying goes: “When the going gets tough the tough get going”.    Now is the time to execute your backup plans, or, your plan B.  Nothing is a Sacred Cow, be tough on all your expenses.   This is the time to ignor the naysayers and get out and mix it up in the market.

Invest you time and effort in training, hiring well, and community connections, new organizations, house parties, speaking engagements at youth oriented groups.  Get to the High School and make sure they know your WiFi is free.  Sponsor talks in your shop directed at the demographic that will respond to coffee.  Too, sponsor recitals for the local music teachers or music stores, or schools, encouraging stage shows in your shop.  You’ll get the whole family out to see their children and grand-children perform.

Please, as soon as you read this, make a list of what you will do tomorrow to build your sales.   Tomorrow, begin to execute the new changes.  Change is good.  If you want higher sales you have to create activities that will bring in new customers and develop relationships with existing customers.   Do not do tomorrow what you do every day.  Start with getting up later, or earlier, take a different route to the store, open in the back instead of the front, stop at the local newspaper stand for the paper you will now leave on the tables.  Take down some handwritten signs, and make sure you rest rooms are available to everyone, not just customers.  (see the end of this post for an important question).

You might like to read “You Can Compete: Double Sales without Discounting” by Bob Phibbs as a start at finding new ideas.   Contact Robert@kmocoffee.com for a free copy. 

In the meantime I urge our customers to visit www.improveyourprofits.com for ideas for improving your profits.

Thank you all for your continued support.  Since starting KMO we (Cathy and I and our staff) have insisted on above standard service as the primary advantage at KMO.  We answer our phones (people do), we basically will do whatever you want (we have a huge number of products, many of which are custom and not on our already long lists), and we unconditionally guaranty our products.  If the coffee does not meet your expectaions, we will take it back or replace it.  No questions are asked.  If you want to experience this service, give Robert or Terry or Ciara a call.  Or write to me at bob@kmocoffee.com

Bob Johnson, Founder