Why USPS is wrong!
January 10, 2011 by baldguy · 2 Comments
Well, it finally happened. Last week I was told by my friends at the local post office that a memo came out indicating that priority mail flat rate envelopes with “bulging seams” are no longer acceptable.
It appears that “if it fits, it ships” has some restrictions, even though our packages seal with out the aid of tape and are not reshaped! Granted, I tape the label on, but even the postal clerk said that this was acceptable. I have a meeting arranged with a customer service rep, however my gut tells me “no is no”.
Therefore, I will still offer free shipping on 3 or more lbs of coffee. However, if you order two lbs or less, plan on paying a flat rate fee of $5.00. I hate that I have to do this, but sometimes a man has to do what the government wants him to do.
2011 Coffee Predictions
January 10, 2011 by baldguy · 2 Comments
Back in 1934 or 1935, American statisticians came up with a new word: guesstimate. It is the process of arriving at a conclusion based on an educated guess. Well, that sums up my approach to making sense of the specialty coffee market.
After talking with a green coffee broker, we both decided that my guess was as good a his with one truth standing: “the only thing predictable about the coffee market is its unpredictability!” So, with that in mind, here we go…
Prediction One: Green Coffee Prices will Increase…kinda.
Last year, the coffee market was at a 13 year high. So far for 2011, the market has not dropped back down to early 2010 levels. There are three factors that are contributing to the increase:
1. reports of coffee shortages.
2. reports of increased consumption within producing countries.
3. the presence of day traders driving the prices as traditional securities stagger.
As a roaster of green coffee, I am amazed that nowhere in the equation is there reference to coffee farmers receiving an increase for their labor and product. The sharp increase in the price of green coffee is more a result of share holders needing to make a reasonable profit.
As my plumber friend once told me, “it is what it is”…the big boys like Nescafe, Sara Lee, and Kraft Foods (I’m sure there are more) control the “futures” market and the ROI (return on invested capital) is the bottom line.
So what does that mean for the rest of us?
I think…or better yet, guesstimate, that prices will decrease when global securities stabilize. Now when that happens, your guess is as good as mine!
Fortunately, Bald Guy Brew has been able to hold off from raising our prices. This is primarily due to the fact that we operate on the skinny! The other factor is that living in Western North Carolina isn’t exactly the hub of the specialty coffee universe, and higher prices would be the death of us.
I imagine that one day we will have to raise our prices. In a perfect world, the price increase would reflect the fact that we are sourcing our own coffee and that farmers are getting paid a better than coffee market price!