scaa presentation wholesale business

19
Growing Your Wholesale Business Marie Franklin Portland Roasting

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

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Page 1: Scaa Presentation   Wholesale Business

Growing Your Wholesale Business

Marie FranklinPortland Roasting

Page 2: Scaa Presentation   Wholesale Business
Page 3: Scaa Presentation   Wholesale Business

Business Channels

• Restaurants/foodservice• Coffee House• Corporate Foodservice• Hotel/Resort• Grocery• Distributors• Private Label

Page 4: Scaa Presentation   Wholesale Business

Products

Page 5: Scaa Presentation   Wholesale Business

Services

• Equipment• Equipment Service• Delivery• Training• Quality Assurance • Marketing

Page 6: Scaa Presentation   Wholesale Business

Pricing

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

Page 7: Scaa Presentation   Wholesale Business

Equipment

• Assess true needs• Find a formula• Remember cost of

servicing• Contract• Clear escape plan

Page 8: Scaa Presentation   Wholesale Business

Beware

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

Page 9: Scaa Presentation   Wholesale Business

Selling

• Your culture• Choose target segments• Sales Reps• Compensation• Samples

Page 10: Scaa Presentation   Wholesale Business

Selling

• Selling materials• Trade Shows• Promo events

Page 11: Scaa Presentation   Wholesale Business

Financial

• Easy to analyze• Understand cost of

goods• Costs of servicing• Margins• Formula for equipment• The pro forma

Page 12: Scaa Presentation   Wholesale Business

REVENUE/COG   3 MONTH VIEWAverage 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      EXPENSESfreight   $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 equpment   $312

must be a positive #

Page 13: Scaa Presentation   Wholesale Business

Restaurant

Page 14: Scaa Presentation   Wholesale Business

Independent Coffee House

Page 15: Scaa Presentation   Wholesale Business

Corporate Foodservice

Page 16: Scaa Presentation   Wholesale Business

Hotel

Page 17: Scaa Presentation   Wholesale Business

Grocery

Page 18: Scaa Presentation   Wholesale Business

Private Label

Page 19: Scaa Presentation   Wholesale Business

Final Thoughts

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