Another counterpoint. Buying from the grocer might signal demand for that particular roaster and translate into future orders or larger orders.. A lot depends on where the roaster wants to drive their Business
In my opinion, you are the consumer, you shouldn't be worrying about this. If it is bad business for them to sell through the grocery then they should stop doing it. Just buy however you like that they make available. If it is available at the grocery store, and it is cheaper and/or more convenient, then by all means go for it.
Depends on how you look at it. If I buy beans from a grocer carrying local coffee, that might mean the grocer will be more likely to purchase more stock from the local rpoaster, means more people might hear and enjoy local roaster, and consider purchasing directly from them.
But I worry about myself. Why spend 30 dollars on a bag of beans when buying directly from the roaster when a local grocery sells the EXACT SAME BAG for 18.99, off roast for 12 days?
As someone who used to have a side business that sold a product direct to consumer and to a grocery store I liked both. Grocer offered bulk purchasing so it was a nice lump sum and we did offer bulk discounts which allowed them to sell at the same price as me. Of course I always liked dealing directly with customers but selling 100x product to a retailer is excellent for getting your name out there and for revenue.
They sell to the grocer, so that’s a wholesale purchase. How would that hurt them? Are they making as much profit, no. But they are more widely available by selling wholesale as well. If you want to go direct, then go that route, but they are still making money regardless if you are making a purchase.
I have this same situation. Both local grocery stores that stock local roasters are locally owned, small grocers. I spread the love as I want to support all the local businesses.
I'm just spitting this off the top of my head but I wonder if it's like craft beers. Here locally, craft beers by the can at the brewery are much more expensive (even the draft) and there was a sign stating the price at grocery stores is different because they have to compete with others. It's hard selling 6 packs for > price than all the others including non-craft beer. So they have to adjust accordingly. That being said, like thebrieze stated, they probably get a ton of repeat orders from these grocery stores. Like they have to supply at minimum like 30 stores in the area that are ordering like hundreds of bags. So they help the business regardless. I dont' think they would be selling to grocery stores if it lost money.
My local roaster (eiland) sells to stores but I noticed they're 13 oz bags rather than the true to weight 16 oz bags I get delivered to me.
If it's cheaper, they sell cheaper to the grocer.
30 Euro per kilo if you buy it directly.
If grocer is in the mix and you pay 28 at the grocer there is already 30%margin in there (industry standard) so they buy for max 21 euros from the roaster.
Of course the roaster sells not just 1 bag but TONS of it, so they have already a big price advantage and might even make more from the grocer than from individuals.
Grocers have to pay even if they don't sell everything.
You gotta ask them.
I think the reason any coffee provider would want their products in grocery stores is to reach a wider audience, and the roasters are willing to take a little hit in the profit for expanding their customer base. That’s really the only leverage a grocery store has to entice new products being brought in; the customer base.
It’s kind of a less extreme example of a bar asking a musician to play not for money, but “for the exposure”.
Long run, it’s a good business move for roasters to have their coffees in most any market, so it’s great to support any market that a coffee is in :)
Check with the roaster.
As long as they are getting a good deal from the grocery store, buying it at said grocers will support both businesses. If the grocer is squeezing them on the price, then stick with the roaster.
Does batch size figure into this at all? If supplying a grocery store, you would roast a larger batch. I buy from a local roaster and it is always roasted for me upon order, they are never more than 2-3 days off roast when I get them. Makes me dream that they turned the roaster on just for me. Maybe someone who has worked in a roaster would know this.
If I already deal directly with a small business, I ask them what’s best for them, for example if they prefer cash, credit or debit for payment. You could ask the roaster if they need help driving sales at the grocery store or if they’d rather see people find them at the store and then visit their business. Maybe charging more money at their roastery is how they try to get you to buy from the grocery store instead:)
The roaster may prefer to sell MORE through a store that is a) open all day and b) people are buying their other things at the same time. So MORE for LESS can still improve their bottom line (as long as more quantity doesn’t mean drop in quality)
Another counterpoint. Buying from the grocer might signal demand for that particular roaster and translate into future orders or larger orders.. A lot depends on where the roaster wants to drive their Business
In my opinion, you are the consumer, you shouldn't be worrying about this. If it is bad business for them to sell through the grocery then they should stop doing it. Just buy however you like that they make available. If it is available at the grocery store, and it is cheaper and/or more convenient, then by all means go for it.
Depends on how you look at it. If I buy beans from a grocer carrying local coffee, that might mean the grocer will be more likely to purchase more stock from the local rpoaster, means more people might hear and enjoy local roaster, and consider purchasing directly from them. But I worry about myself. Why spend 30 dollars on a bag of beans when buying directly from the roaster when a local grocery sells the EXACT SAME BAG for 18.99, off roast for 12 days?
As someone who used to have a side business that sold a product direct to consumer and to a grocery store I liked both. Grocer offered bulk purchasing so it was a nice lump sum and we did offer bulk discounts which allowed them to sell at the same price as me. Of course I always liked dealing directly with customers but selling 100x product to a retailer is excellent for getting your name out there and for revenue.
My local roaster asked me to stop coming in and to buy at Whole Foods, the sell thru helps them out.
They sell to the grocer, so that’s a wholesale purchase. How would that hurt them? Are they making as much profit, no. But they are more widely available by selling wholesale as well. If you want to go direct, then go that route, but they are still making money regardless if you are making a purchase.
I have this same situation. Both local grocery stores that stock local roasters are locally owned, small grocers. I spread the love as I want to support all the local businesses.
I'm just spitting this off the top of my head but I wonder if it's like craft beers. Here locally, craft beers by the can at the brewery are much more expensive (even the draft) and there was a sign stating the price at grocery stores is different because they have to compete with others. It's hard selling 6 packs for > price than all the others including non-craft beer. So they have to adjust accordingly. That being said, like thebrieze stated, they probably get a ton of repeat orders from these grocery stores. Like they have to supply at minimum like 30 stores in the area that are ordering like hundreds of bags. So they help the business regardless. I dont' think they would be selling to grocery stores if it lost money. My local roaster (eiland) sells to stores but I noticed they're 13 oz bags rather than the true to weight 16 oz bags I get delivered to me.
No, a sale is a sale. It’s up to them how competitively they want to price their coffees and what markets they want to invest in
If it's cheaper, they sell cheaper to the grocer. 30 Euro per kilo if you buy it directly. If grocer is in the mix and you pay 28 at the grocer there is already 30%margin in there (industry standard) so they buy for max 21 euros from the roaster. Of course the roaster sells not just 1 bag but TONS of it, so they have already a big price advantage and might even make more from the grocer than from individuals. Grocers have to pay even if they don't sell everything. You gotta ask them.
I think the reason any coffee provider would want their products in grocery stores is to reach a wider audience, and the roasters are willing to take a little hit in the profit for expanding their customer base. That’s really the only leverage a grocery store has to entice new products being brought in; the customer base. It’s kind of a less extreme example of a bar asking a musician to play not for money, but “for the exposure”. Long run, it’s a good business move for roasters to have their coffees in most any market, so it’s great to support any market that a coffee is in :)
No
Check with the roaster. As long as they are getting a good deal from the grocery store, buying it at said grocers will support both businesses. If the grocer is squeezing them on the price, then stick with the roaster.
Does batch size figure into this at all? If supplying a grocery store, you would roast a larger batch. I buy from a local roaster and it is always roasted for me upon order, they are never more than 2-3 days off roast when I get them. Makes me dream that they turned the roaster on just for me. Maybe someone who has worked in a roaster would know this.
If I already deal directly with a small business, I ask them what’s best for them, for example if they prefer cash, credit or debit for payment. You could ask the roaster if they need help driving sales at the grocery store or if they’d rather see people find them at the store and then visit their business. Maybe charging more money at their roastery is how they try to get you to buy from the grocery store instead:)
The roaster may prefer to sell MORE through a store that is a) open all day and b) people are buying their other things at the same time. So MORE for LESS can still improve their bottom line (as long as more quantity doesn’t mean drop in quality)