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  • Coffee Price Rise

    Unless you have been off-grid for months you would have seen the media talking about coffee pricing. It's fairly normal to have these stories a couple of times a year but mostly it's just a spike in price and it settles soon after.

    This time it's a "perfect storm" for a host of reasons and excuses. Pandemic has caused havoc over the last two years, weather problems at major origins like frosts, floods and drought, freight problems leaving no food grade containers at origin to ship coffee out and a lack of planes in the sky to airfreight it. Add to all that high container sea freight pricing and wharf strikes and even congestion tax once it gets here along with a low AU dollar and high fuel pricing.

    We have kept roasted coffee at the same pricing for most of the last decade, wearing small increases and off-setting by buying in larger quantities but we can't buffer any more, prices have to go up. Green bean pricing is currently jumping up to 8% a month for the last few months and it will flow through the whole chain. A container I landed last June cost me $6000 in freight and in two week time I'm landing the same container and it's landed cost is $16000, yep, a $10,000 increase for the exact same thing in just 18 months.

    We have just increased our prices to cover this.

    Roasted coffee has gone up around $4/kg
    Green Coffee has gone up between $2/kg and $3/kg

    We'll always price fairly, charge actual freight costs and continue to buffer where we can. I really hope this is the only price increase for a while but if our buy prices keep heading north we'll have to keep adjusting through 2022.

  • #2
    It is a weird thing. The Chinese make the containers and the additive for diesel we need...

    Comment


    • #3
      Still a bargain for great quality and a huge range of beans.
      Don’t forget to make a bit of a profit, everyone in the chain deserves to make a living.

      Comment


      • #4
        Originally posted by amberale View Post
        Still a bargain for great quality and a huge range of beans.
        If my calculations are correct, that works out at about 35c per shot for a $15/kg green bean, factoring in 15% weight loss during roasting. The Yemen works out to be almost $1 per shot. Now think about what you would pay fir a short black in a cafe - about10 x that.

        Comment


        • tompoland
          tompoland commented
          Editing a comment
          True true ... And you have the satisfaction of roasting (fun) and the pleasure of using your own machine to pour. Heck, I would pay MORE than retail if I had to too. Still a bargain, is what I'm saying.

      • #5
        Yes, still a bargain considering the distance travelled, the amount of labour to grow, sort, pick, pack and deliver and I expect the cafe price per cup you are basing it off will rise sharply soon too (far more than the kilo price will).

        We have always kept green bean pricing pretty much in check as we can easily adjust each time we land it but our roasted coffee without regular adjustments has drifted way too far.

        There are two choices with roasted coffee:
        • Either you lower the grade and quality to hold a price
        • Or you put the prices up to cover the cost and keep using quality components.
        That's a no brainer for me, others can choose to use blend in floor-sweepings to sell at a low price point but CoffeeSnobs has always been about great coffee so we've upped the pricing to allow us to continue to use great beans, roasted with care and love.

        Hopefully the craziness of the supply chain settles down so we don't get too many shocks along the way.

        Comment


        • Dimal
          Dimal commented
          Editing a comment
          Well said Andy and totally supported around here...

        • celiak
          celiak commented
          Editing a comment
          Agree Coffeesnobs is such a bargain or more so valued place - including for the range & quality of beans & the relationship you have w the growers +. And to appreciate your cost structure - increased prices included.

          I just wish more if the money was going to the growers - though transport is clearly important.

      • #6
        Originally posted by Andy View Post
        ...still a bargain considering the distance travelled, the amount of labour to grow, sort, pick, pack and deliver...
        Pricing is a total bargain! More interestingly and in my opinion, the quality of the green bean you bring in is way better than other places I have brought from, and still cheaper when others go on sale (go figure!).
        If anything, I'd be more than happy if you added $ to each kilo I buy to go to more Fair Crack projects to support the growers, sorters, pickers in a small way who have no doubt being doing it tough.

        Mike
        ​​​​​​​Edit: Might just be easier for me to put in a donation to Fair Crack on my next purchase rather than make a $ adjustment for all.

        Comment


        • celiak
          celiak commented
          Editing a comment
          Agree & was just thinking the same re Fair Crack ‘donations’

      • #7
        Originally posted by Grumpybarista View Post
        Pricing is a total bargain! More interestingly and in my opinion, the quality of the green bean you bring in is way better than other places I have brought from, and still cheaper when others go on sale (go figure!).
        It's always been that way, just some people don't realise. We've always sold high quality green beans at cost subsidised by site sponsors and our roasted bean profits feed the family. I've seen some of the copycats selling rubbish green beans with a polished marketing spiel and a silly price, you can always get better quality here for less money, even with the price increase.

        Comment


        • mfumunyanga
          mfumunyanga commented
          Editing a comment
          I don't usually post to these chat groups. In this case I just keep buying the coffee. Actions speak louder than words. 'nough said.

        • datrat
          datrat commented
          Editing a comment
          Thanks Andy and totally support you. I've been buying green beans since 2013 and always of highest quality and very reasonable pricing and I can't recall your pricing increasing over time.

      • #8
        While I hate the idea of too many middle-men taking increasing profits, the small increases to us are nothing when compared to shops, etc. and I hope we can keep the growers and pickers alive and healthy with the Fair Crack funds.

        Comment


        • #9
          Ive purchased from Beanbay for many years and im sure like many we also look at other sellers throughout Australia. I can say for the handful of places i buy smaller amounts of beans like this Its only Andy who has seemed to have keep the prices as is. I wont name any other places but a few that started off in the ealry 2000s had good prices per kg. Then it felt like it was over night that they shot up.

          I feel we are lucky as with Beanbay we have attached a open forum and im sure like many appreciate Andys openness on stating prices increases and saying it how it is so we are all in the know.

          Cheers,

          Chris

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          • #10
            I recently bought some greens from elsewhere as they had free postage so cheaper for me in the sticks but the quality is terrible and even though I have enough greens in stock I’ll be ordering with Andy again soon to get the quality. Wish I never went elsewhere!

            Comment


            • #11
              Sorry to hear you were diddled
              oliverm but also not overly surprised.

              The real gotcha is I'm yet to find a freight company that will deliver FREE so the only way to offer cheaper freight than CoffeeSnobs (which is cost price) is for them to send rubbish beans at a big markup to cover the postage.

              3500km from us to Margaret River so Express Post will be fastest but pricey, if you can ship to a Perth or Freo address then you'll get more freight options in the BeanBay checkout (slower and cheaper), just depends on how long you can wait and how much a hassle it is to collect from a more metro location.

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              • #12
                Well I have no complaints. Andy has to run a viable business and the cost of coffee beans has gone up mainly I gather because of seasonal problems mainly in Brasil. I suppose shipping costs have also gone up as for most imports. I suppose the good news is that the premium stuff Andy sells has not gone up as much proportionally as the cheap commercial beans you get at the supermarket.

                Comment


                • Ted2013
                  Ted2013 commented
                  Editing a comment
                  Forgot to ask when is the WOW Decaf likely to come back on/ Wifey & I rely on it after 3PM to keep our caffiene intake under control. Have a fair stash at the moment but could get desperate in about 3 - 4 months time.

                • Andy
                  Andy commented
                  Editing a comment
                  Soon... but see the BeanBay description (saves me answering the same thing ad nauseam)

              • #13
                Shipping in some industries has gone up 400%.

                USPS for example, put Au on their no post list due to the problems here in 2021 with lockdowns. That left a couple of already expensive channels to carry general shipping and prices skyrocketed.

                amazon has leased/purchased its own ships to shift its own Amazon sold products (not third party sellers on the platform).

                many people don’t realise that majority of international packages go by passenger aircraft so with that cut massively all other methods are increased in demand… and also facing their own issues. None of it is simple; the interconnected nature of all parts is really complex before you even consider the actual coffee crops and farming side even!

                not to throw stones but the “just in time” philosophy of manufacture and supply chains has been ok for pricing with reduced holding stocks but has shown its fatal flaw in having zero redundancy or depth when the shit hits the fan at multiple nodes in the system.

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                • #14
                  I've been buying green beans here since 2007 and until my order yesterday I have to say the prices have barely changed, despite 'end of days' coffee price warnings every few years. Frankly I'm amazed Andy's prices have been as consistent as the quality. A Colombian volcan galeras was the first bean I roasted in a sample pack, and I still add a bag to nearly every order.

                  Thank you Andy for bringing us this amazing coffee. I did enjoy the monthly Richmond collection points though!

                  Comment


                  • Andy
                    Andy commented
                    Editing a comment
                    I get half a day off a week so swapping the Richmond pickup for that 1/2 a day is the only reason CoffeeSnobs still exists and the only time I get to do chores at home. I'd like to do it again but it just doesn't fit
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