One of our core values as outlined in our Manifesto is Transparency. For us that means striving to provide you with as much information as possible about how we operate and what we do. We take pride in what we do and have no reason to be shy about it. We want people to understand why coffee costs what it costs, particularly when someone may be used to paying a far smaller amount for coffee they purchase elsewhere. This page, and the others within our living transparency document, will always change and evolve. We'll do our best to keep it current and relevant, and if we miss the mark anywhere we welcome being called out on it and we'll happily remedy it.
What do you pay for your coffees?
The price we've paid for our coffees are listed below. This data is embedded directly from the database we use for our records and is used as the basis for calculating what we charge for our coffee.
How do you price your coffees?
We aim to have an average GP (Gross profit) margin of 80%. That is our fixed costs for the coffee shouldn't add up to any more than 20% of what we sell the coffee for. Keep in mind that that 80% figure isn't what we pocket at the end of the day, it is the amount we make from each coffee before then deducting other expenses - postage on deliveries, delivery boxes, website fees, card payment fees, electricity, wages, repairs, taxes, etc.
Below you'll find the table we use to calculate our retail prices. This table is a live embed of the tool we use to do this, so it'll change automatically as we add new coffees or as costs change.
You'll notice we have our target GP% and the price that equates to, followed by our actual price and actual GP%. We've done this because sometimes we feel a coffee is worth a little more than we've paid for it, or conversely worth less. That isn't to say we don't think a coffee is worth it's cost, but sometimes a little judgement is needed to set the price.
Overall, however, we must strive to hit about 80% average in order to survive as a business.
What is the Farmgate price?
I've had enough staring at the screen for now. I'll answer this question tomorrow!