HomeRoast Digest


Topic: Help with the Math (16 msgs / 631 lines)
1) From: Frank Stacey
I was trying to do the math regarding the Best of Panama offer for three=
 bags for $100.  If the number two coffee is selling for $13.95 per lb, we=
 could assume the number 3 coffee would cost no more than the number two=
 coffee or $13.95 per lb. That would leave approximately $72 per lb for the=
 number 1.  Seems like a dear premium to pay over and above the bid price=
 does it not?

2) From: Brett Mason
Well, Folers IS cheaper.
Somewhere in the economy of incredible coffee comes the balance of Quality
versus Price.
So let's do some more math...
$72 per lb
 = somewhere around $9 per brewed pot
 = somewhere around $1.15 per 8oz cup.
Is there any chance that $1.15 is appropriate for one cup of an incredible
award winning coffee?
You're right - Folgers all around....
I also drive a Porsche because it is well worth it.
Brett
On 6/29/06, Frank Stacey  wrote:
<Snip>
-- 
Regards,
Brett Mason
HomeRoast
   Zassman

3) From: miKe mcKoffee
No it does not. Quite reasonable actually, darn right cheap by any common
sense standard of business. It auctioned for $52 per pound. Tom pays for it
whether he can sell a single bean or not. Try running a business based on a
extremely meager less than 20% mark up, which isn't even the profit margin
which is less, and see how long you survive.
BTW, have you ever bought a piece of jewelry at a jewelry store? Their
standard mark up is 600%, and they don't even deal in a perishable item.
miKe
<Snip>

4) From: Don Cummings
Are you being serious? or sarcastic.
Do you have any clue what the average markup is for retail products?  Do you
have an idea what the average markup has to be in order to stay in business?
Also, the number 3 costs more than the number 2 so 72 is not a correct
number. $66 is probably closer to accurate and imo and experience a
razor-thin margin.
On 6/29/06, Frank Stacey  wrote:
<Snip>
-- 
Don

5) From: Got Aloha??
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 From here: http://auction.stoneworks.com/includes/pa2006/
final_results.html
$50.25 hacienda la esmeralda
$10.75 Bambito estate
$14.20 Carmen estate
$75.20
and freight from panama to oakland?
travel expenses?
our hosts here are making money on the volume of consistently great  
greens they offer to us, they are nowhere close to retail markup here.
A dear price I cannot afford, but I did get a 20 pounder of the  
carmen estate : )
The Edge... there is no honest way to explain it because the only  
people who really know where it is are the ones who have gone over. - 
Hunter S. Thompson
houstini
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From here:  =$50.25 hacienda la =">http://auction.stoneworks.com/includes/pa2006/final_results.html class="3D"khtml-block-placeholder"">$50.25 hacienda la =
esmeralda$10.75 Bambito estate$14.20 Carmen =
estate$75.20 
and freight from panama to = oakland?travel expenses?
our hosts here are making = money on the volume of consistently great greens they offer to us, they = are nowhere close to retail markup here.
A dear price I cannot = afford, but I did get a 20 pounder of the carmen estate : = ) The Edge... = there is no honest way to explain it because the only people who really = know where it is are the ones who have gone over. -Hunter S. = Thompson
houstini
= = --Apple-Mail-1--608758963--

6) From: Ed Needham
I seriously doubt Sweetmarias made anything on this deal except a bit of 
newsworthiness and enhanced reputation.  Building the reputation of 
Sweetmarias as a truly serious seller of the absolutely best beans is likely 
the only profit to be made on a deal like this.  Of course Tom gets all the 
fun of going to the source once again, and writing it off as business (even 
though it really is business, wow, what a job!)
*********************
Ed Needham®
"to absurdity and beyond!"
ed at homeroaster dot com
(include [FRIEND] in subject line to get through my SPAM filters)
*********************

7) From: mmore
 Bottom line is......if you'll pay it, it's worth it.  Capitalism at it's best!
 
I paid it...
 
Michael A. Roaster in Vienna

8) From: Tom Bellhouse
This is a multi-part message in MIME format.

9) From: Sandy Andina
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Intelligentsia is getting $51 per HALF lb. for the Esmeralda-- 
granted, it's roasted, but that's 100% markup.
On Jun 30, 2006, at 1:16 AM, Got Aloha?? wrote:
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Sandy Andina
www.sandyandina.com
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Intelligentsia is getting $51 =
per HALF lb. for the Esmeralda--granted, it's roasted, but that's 100% =
markup.
On Jun 30, 2006, at 1:16 AM, Got Aloha?? =
wrote:
From here:  =$50.25 hacienda la =">http://auction.stoneworks.com/includes/pa2006/final_results.html class="3D"khtml-block-placeholder"">$50.25 hacienda la = esmeralda$10.75 Bambito estate$14.20 Carmen = estate$75.20 
and freight from panama to = oakland?travel expenses?
our hosts here are making = money on the volume of consistently great greens they offer to us, they = are nowhere close to retail markup here.
A dear price I cannot = afford, but I did get a 20 pounder of the carmen estate : = ) The Edge... = there is no honest way to explain it because the only people who really = know where it is are the ones who have gone over. -Hunter S. = Thompson
houstini
= Sandy = Andinawww.sandyandina.com = --Apple-Mail-3--569408216--

10) From: raymanowen
"I was trying to do the math..."
You used the rong formula- ro
On 6/29/06, Frank Stacey  wrote:
<Snip>
-- 
"When the theme hits the bass, I dance the Jig!" - -Virgil Fox at the
Wichita WurliTzer

11) From: Les
Let us also remember that Intelligentsia is one of the best roasters
out there.  I know it is fun as a homeroaster to get into bashing the
commercial roasters, but I support roasters like Intelligentsia,
Stumptown and Barefoot Roasters just to name 3 whose coffee I have
tried.
Les
On 6/30/06, Sandy Andina  wrote:
<Snip>

12) From: Wesley Simon
And, there is nothing wrong with trying to make an honest living...
Given the speed with which the trifecta sold out, I think it's safe to say
that the price could have been bumped up a little higher without impacting
demand.
On 6/30/06, raymanowen  wrote:
<Snip>

13) From: Sandy Andina
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Heck, I don't bash them, either--I buy regularly from Intelly and  
Metropolis. Just took Intellly's roastery tour, and sent my son to  
their home barista class (the same one I took last year). Good to  
know that he can use my Livia and Mazzer without breaking them (and  
that I'm no longer the only barista in the house).   BTW, this year,  
in addition to the usual pound of Black Cat you get as a souvenir at  
the end of the class, they're giving away a Colombia Tres Santos  
seedling! My first coffee plant!
It's good to buy some fresh, expertly roasted coffee on occasion--not  
only is it an educational tool, but it gives me something to drink if  
I've just returned from vacation and the stuff I've freshly roasted  
(upon my return) needs a few days' rest.  And when I get back home  
from NYC, I'm heading over to Intelly's Millennium Park shop after my  
Wed. morning court call to see the Clover in action.  (May also pick  
up some Leftist Blend from Gimme Coffee in Brooklyn before my gig on  
Monday night).
Other roasters that have impressed me (outside NY and Chi) are  
Counter Culture Coffee in NC (poured at Murky Coffee in DC and  
Arlington, VA), Caffe d'Arte in Seattle, and Dead River Roasters up  
in Marquette, MI.  When I eventually get to Portland and the East  
Bay, I will also try Stumptown and Barefoot.
On Jun 30, 2006, at 12:30 PM, Les wrote:
<Snip>
Sandy Andina
www.sandyandina.com
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Heck, I don't bash them, =
either--I buy regularly from Intelly and Metropolis. Just took =
Intellly's roastery tour, and sent my son to their home barista class =
(the same one I took last year). Good to know that he can use my Livia =
and Mazzer without breaking them (and that I'm no longer the only =
barista in the house).   BTW, this year, in addition to the usual =
pound of Black Cat you get as a souvenir at the end of the class, =
they're giving away a Colombia Tres Santos seedling! My first coffee =
plant!
It's good to = buy some fresh, expertly roasted coffee on occasion--not only is it an = educational tool, but it gives me something to drink if I've just = returned from vacation and the stuff I've freshly roasted (upon my = return) needs a few days' rest.  And when I get back home from NYC, = I'm heading over to Intelly's Millennium Park shop after my Wed. morning = court call to see the Clover in action.  (May also pick up some = Leftist Blend from Gimme Coffee in Brooklyn before my gig on Monday = night).
Other = roasters that have impressed me (outside NY and Chi) are Counter Culture = Coffee in NC (poured at Murky Coffee in DC and Arlington, VA), Caffe = d'Arte in Seattle, and Dead River Roasters up in Marquette, MI.  When = I eventually get to Portland and the East Bay, I will also try Stumptown = and Barefoot. On Jun 30, 2006, at 12:30 PM, Les = wrote:

I = support roasters like Intelligentsia,

Stumptown and Barefoot Roasters = just to name 3 whose coffee I have

tried.

= Sandy Andinawww.sandyandina.com = = --Apple-Mail-4--565567225--

14) From: javafool
First of all, I think the original post from Frank was a fair question, =
but
there is more to consider than the original cost of the coffee and even
shipping to Oakland.
• Transportation from dock to store
• Inventory paperwork
• Weigh and package 375 individual bags of coffee
• Hand tape each bag so they would not open and mix during shipment to =
us
• Write and print descriptions of coffees
• Package the Trifectas and printed materials professionally in an
over-package
• Receive orders
• Package individual orders
• Receive payments and print address labels for packages
• Pay for building, utilities, insurance, employees besides Tom & =
Maria
• Absorb the cost of beans gone bad or not sold, some damaged supplies =
and
other items received for resale
• Make a reasonable profit for all the effort put into the business
• Pay taxes
I’m sure there is much that I have omitted. But my point is that I =
thought
the question was reasonable. A lot of the time the other costs and =
efforts
involved in bringing that product from the market into our homes are
somewhat invisible, but they are real expenses. I’m just slightly
disappointed they didn’t come packed in silk bags and a handcrafted,
dove-tailed mahogany box.
Regards,
Terry

15) From: Robert Adams
Did anyone else notice the short duration between the auction and the 
trifecta being put up for sale? Tom had originally thought it would take six 
weeks, but actually it was about sixteen days. Me thinks the small axes flew 
it in, perhaps to get it to market while the buzz was still abuzzin'.
Smart move. Even w/o the airfreight this is a loss leader for all involved. 
Those involved in the buying alliance got great publicity, the cause of 
specialty coffee was advanced, and I've got some beans very, very few people 
in the world have.

16) From: David Schooley
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Talk about bad timing. I took the barista class in May. We got to see  
the plants sitting in the warehouse, but we did not get to take one  
home. Mild disappointment for me means a much longer and happier life  
for the plant.
I would recommend the barista class for anyone who has an interest in  
coffee. I have had my Isomac for several years, and I still learned a  
lot from Sarah and Ellie. Besides, the class is a lot of fun.
Intelligentsia is a Chicago treasure. I regularly order Black Cat and  
occasionally a pound or two of single origin. They also sell green  
coffee, so if you want to compare your skills against some of the  
best, you can try buying the same origin as green and roasted.
On Jun 30, 2006, at 12:16 PM, Sandy Andina wrote:
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Talk about bad timing. I =
took the barista class in May. We got to see the plants sitting in the =
warehouse, but we did not get to take one home. Mild disappointment =
for me means a much longer and happier life for the plant.
I would recommend the = barista class for anyone who has an interest in coffee. I have had my = Isomac for several years, and I still learned a lot from Sarah and = Ellie. Besides, the class is a lot of fun. 
Intelligentsia is a Chicago = treasure. I regularly order Black Cat and occasionally a pound or two of = single origin. They also sell green coffee, so if you want to compare = your skills against some of the best, you can try buying the same origin = as green and roasted. 
On Jun 30, 2006, = at 12:16 PM, Sandy Andina wrote:
Heck, I = don't bash them, either--I buy regularly from Intelly and Metropolis. = Just took Intellly's roastery tour, and sent my son to their home = barista class (the same one I took last year). Good to know that he can = use my Livia and Mazzer without breaking them (and that I'm no longer = the only barista in the house).   BTW, this year, in addition to the = usual pound of Black Cat you get as a souvenir at the end of the class, = they're giving away a Colombia Tres Santos seedling! My first coffee = plant!
It's good to = buy some fresh, expertly roasted coffee on occasion--not only is it an = educational tool, but it gives me something to drink if I've just = returned from vacation and the stuff I've freshly roasted (upon my = return) needs a few days' rest.  And when I get back home from NYC, = I'm heading over to Intelly's Millennium Park shop after my Wed. morning = court call to see the Clover in action.  (May also pick up some = Leftist Blend from Gimme Coffee in Brooklyn before my gig on Monday = night).
Other = roasters that have impressed me (outside NY and Chi) are Counter Culture = Coffee in NC (poured at Murky Coffee in DC and Arlington, VA), Caffe = d'Arte in Seattle, and Dead River Roasters up in Marquette, MI.  When = I eventually get to Portland and the East Bay, I will also try Stumptown = and Barefoot. On Jun 30, 2006, at 12:30 PM, Les = wrote:
I support roasters like = Intelligentsia,Stumptown and = Barefoot Roasters just to name 3 whose coffee I havetried. = Sandy Andinawww.sandyandina.com = = --Apple-Mail-3--478653614--


HomeRoast Digest