One of the elements that we believe will move our industry in a positive trajectory is the idea of transparency. So here's a brief on how we build our pricing model. Should you have further questions, please don't hesitate to ask. We're more than happy to have the conversation.
Below is a list of our offerings and how we'll refer to them, plus the average margin we've set out to have a sustainable business for the long run. These margins are created to cover costs of overhead, labour, logistics, travel and general business related expenses.
Our input costs for coffee on our Spot menu tend to range from $3.00 - $6.50 USD/lb FOB.
Spot Coffee's are coffees that are landed and currently in inventory. They're available for purchase and can be received generally within a few days of the order - client dependant. On these offerings, our average margin is ~30% of FOB.
Pre-booking can come in two different realms. The first style of pre-booking would come from an offering list directly following an origin trip and selecting lots based on your criteria. We can send pre-shipment samples and you can cup and confirm which lots best suit your business. You'd receive first priority on coffees shipping out and with these offerings, our average margin would be ~20%.
The second style of pre-booking, which we'd honestly prefer, is the idea of you coming with us on an origin trip. This give you and your business the opportunity to make your own selections and build a direct relationship, and also tour the operations first hand. In this case, we'd budget a daily rate for accommodation, transport, food and drink - dependant on the country. You book your flights, you make all your own selections, we accommodate transport and everything else. In this case, our goal is to have an average margin ~10%. Though this is our lowest margin, we feel the most drive for people to take this option. There's lots to learn when at origin and we think you'll come home energized and inspired to grow. Not to mention it's gratifying to grow hand in hand with a coffee producer year over year.
Our final offering is the realm of competition coffees and/or experimental offerings. These tend to fall in 23kg vacuum sealed boxes. For us, this is an area we'd love to see grow and develop in our industry. We're passionate about coffee competition and the drive to create new and unique profiles in our industry. We have extensive knowledge and experience in competition and would be more than happy to support and coach you in your journey. On these coffees, we'd be looking to make a margin between 50 and 100%.
Should you have any questions about our practices and how we've come up with these numbers. Please don't hesitate to let us know. As a brief summary, here are the four ways to shop green coffee from Forward Coffee;