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Coffee and Marketing

Coffee and Marketing

What is this Coffee and Marketing all about. Here Peter Hanley uses Coffee as a way to the market that you can use in your business.

First of all, it helps if you make a plan and focus on what needs to be done.  Never start a marketing campaign without having your morning coffee or even two.

What can coffee be?

Coffee and Marketing
It can be a drawcard as a giveaway so you buy other products. Free or cheap coffee.
McDonald’s do this with cheap coffee and seniors free coffee to get people to buy burgers.
It can be the main product as in coffee shops but they still take you to the food they sell.

Coffee wholesalers give away the machines that make coffee for free so you buy their coffee in bulk.
Coffee shops give coffee away. An example is one cup free for every ten bought with coffee cards and the like.

Coffee retailers give away biscuits and bits to encourage sales.
Milk comes included plus sugar off course unless you want something like Soya milk or Almond milk then it may not be free.
So let’s have a recap here.

We buy the coffee for very little from the poorest countries in the world.
We give the retailer a machine to make the coffee
Then Free take away mugs, sugar and sweeteners
Plus we give one coffee free for every ten bought.

Is something wrong with this coffee model?

The margin on a  retail cup of  Coffee is huge with a 20 times markup but who gets the most out of it.
It is a volume business from start to finish with only the consumer picking up the tab for the whole chain.

Nespresso and the coffee market.

Coffee and Marketing

Now here is a marketing plan that has taken coffee to a new level. I believe it is based on the fundamentals of APPLE.
Stylish, modern, very functional, can’t be copied easily and repeat business.
You pay more for a Pod than it costs to make a retail coffee with Cup, milk, sugar and accessories so what can go wrong.
The machines are cheap to get you in and then the marketing is really swish to keep you locked.
even George Clooney gets a cut

What’s all this got to do with your business?

We all have different businesses so the principles may vary but you should learn from what you can.
Have a high margin so you can give something away.
Use that high margin product as a giveaway.
An example:
A friend of mine runs a Fresh food shop in a local area. At the front of the store, he has a Coffee section and a Flower section that is designed to attract clients. Works well
Within 100 meters there are five opposition coffee outlets all trying for the same customers. Two new ones started that meant sales were down.
In Sams case, the coffee is a drawcard for other sales and not his main product.
What Sam did was to discount his coffee, one price any size take away coffee all day.
Added a nice biscuit and a few frills as well.
The result was an increase in coffee turnover by about 5 times plus in-store sales increased by a satisfactory amount.

Leverage your sales value.

Coffee and Marketing

Just selling coffee will never make you rich unless you are Starbucks I suppose.
Think about this. If you sell 300 coffees a day you earn say $900 gross.
now on a 10 hour day, that’s one every  2 minutes so you are travelling.
Overheads are fixed so your margin is locked in.
But throw in a Cake, Pie, sandwich and you take your sales up many times.

So how can you leverage in your market?

I run a message service for business, base service,  recurring income billed every month.
Then I do a Maccas and ask if they want fries with that.
A professional message, another service, extra calls all things that add extra value to the base sale. Still one invoice, one customer three or more times the value.

My free training platform at the Wealthy affiliate really misses on this one as one price fits all.  However, they do offer value-added products like jaaxy keyword finder, new and recurring domains names being just two that come to mind.

In the training at the Wealthy Affiliate, they show you how to leverage your internet income by value adding a base product to increase your opportunity to make extra money without extra cost


Image of authorPeter Hanley


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