A vendor is either costing you money or saving you money. Right?
Recently I was talking with a friend who owns multiple coffee shops in the area. We were talking about how people go about business and conduct themselves professionally and we were shocked at some of the behaviors we come across in the business world.
As the conversation went on, we talked about pricing of coffee and how shop owners approach that topic. In my opinion, the majority of the shops go about it the wrong way.
When a potential new vendor approaches me about using their services or product, I see it as an opportunity! I will listen to their pitch but ultimately the first thing I tell them is where I need to be on price, and WHY. It immediately puts the ball in their court and gives them an opportunity to either match the price, give better pricing, or explain why I should pay more (the value proposition).
If I’m paying .3 cents for coffee cup lid, why should I pay .4 or .5? Just because? Get that shit out of here! Tell me why it’s going to make me more money or provide a better experience for my customer-making them enjoy the coffee more or wanting to come back!
This is exactly how coffee shop owners should approach the coffee buying process. So many times that I approach shops, restaurants, retail outlets the first thing they ask for is pricing. I get it. But what I would do is ask about the coffee first (what kinds, flavor profiles, whats good on espresso, whats good on batch, etc.) and then just tell them where I need to be on pricing and see what they say.
So, where do you need to be on price and why?