Marie Franklin's presentation at SCAA 2009 on coffee wholesale business

1. Growing Your
Wholesale Business
Marie Franklin
Portland Roasting

3. Business Channels
• Restaurants/foodservice
• Coffee House
• Corporate Foodservice
• Hotel/Resort
• Grocery
• Distributors
• Private Label

4. Products

5. Services
• Equipment
• Equipment Service
• Delivery
• Training
• Quality Assurance
• Marketing

6. Pricing
• Build value in
• Understand your true costs
• Pricing with equipment and without
• Keep as structured as possible
• Yield

7. Equipment
• Assess true needs
• Find a formula
• Remember cost of servicing
• Contract
• Clear escape plan

8. Beware
• Airpot black hole
• Low volume surprises
• Look at each deal individually
• Exclusivity

9. Selling
• Your culture
• Choose target segments
• Sales Reps
• Compensation
• Samples

10. Selling
• Selling materials
• Trade Shows
• Promo events

11. Financial
• Easy to analyze
• Understand cost of goods
• Costs of servicing
• Margins
• Formula for equipment
• The pro forma

12. REVENUE/COG 3 MONTH VIEW
Average price per
pound 7.5
Pounds per week 20 $1,950
% of allied 20% $390
total sales $2,340
cost of goods coffee $600
cost of goods allied $293
GROSS PROFIT $1,448
EXPENSES
freight $130
initial start-up
marketing $0
marketing by % of
sales 2% $47
# or airpots 3 $75
other comps $50 $50
other costs $0
depriciation $33
net profit $1,112
% of profit 48% target 45-50%
lowest 42%
EQUIPMENT
loaned equipment
value 800 $800
maximum value of
equipment $1,112
over/under

13. Restaurant

14. Independent Coffee House

15. Corporate Foodservice

16. Hotel

17. Grocery

18. Private Label

19. Final Thoughts
• Early mistakes
• Pre-plan with customer
• Every deal is a profitable one
• Differentiate
• Fit