Competing on Price

Lets be frank, with our product, we can’t compete on price. Great coffee costs too much to sustainably match regular coffee prices in a coffee shop.

If we try, my guess is that we’ll either compromise our quality or go broke. Neither of which is a good thing.

So what to do? Firstly, why do business’ compete on price in the first place? From what I understand, it’s one way of targeting a particular market. People like cheaper prices, so, if the same product is available from a few companies people will most likely go for the cheapest option (unless something like convenience outweighs this).

Thinking back to great coffee, a market looking for the cheapest option is not really the market we’re after. Agreed? So what then? Well, what else do people want? Well that’s where knowing our own individual markets comes in. Is it quality or something else? Either way, I think we should make it clear that cheap prices are not something we care about, in fact, paying more for better coffee is something we are proud of. And this is reflected in per cup prices.

Specialty coffee is a niche market. That means that 90%* of people won’t want, or like, our product. We should expect this. Our aim is to attract that 10% who will.

* I made up this number to illustrate a point.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: