Hello coffee enthusiasts,

Today I would like to talk about a topic that comes around annually, and is probably not what most people are thinking when I say it appears around this time of year. Yes, the holidays are obviously the big standout for the end of the year, but there is also another important order of business that takes place every year during the last few weeks of December. That order of business is price changes and analysis. Adjusting prices may seem like an easy task to some, but I put a lot of time and effort into analyzing a few different factors when deciding what to bump up in price, and more importantly, by how much.

To start, I typically create a spreadsheet focusing on our total sales of each of our menu items over the previous year. This is the first year that BCB Rossmoyne is fully involved, so I’m very excited to see what our top selling items are between both of the shops. After I have all of the pricing and sales laid out for each item, I then move on to the fun step. That step is to compare our prices to our competition to make sure we’re similar in our offerings. Some of the menus can be found online, but the fun really comes in to play when I get to sneak to the competitor shops and collect their menus by hand. I like to pretend I’m on some top-secret mission, but the reality is I know and respect the majority of coffee shop owners around here, and I’d bet that they analyze pricing every year as well, so I’m sure they’re understanding of the process.

After collecting information on the pricing models of a variety of coffee shops, I collaborate the findings and create a baseline to use as a reference for our pricing. This baseline gives me a great idea of where our competition sits price-wise, but at the end of the day, it’s really up to us to figure out where we want our pricing to sit.

The last step in deciding on price changes is to go back over any changes in price that our distributors made over the past year. For instance, if Harrisburg Dairies price for a gallon of Whole Milk went up by $.20 over the course of 2018, then we would need to adjust our pricing for every item that typically requires whole milk accordingly. For reference, Harrisburg Dairy updates their pricing about once a month, and they’re only one of our seven distributors. Hopefully it’s easy to see why I choose to do this once a year, and why it’s so important for us to keep up with price changes.

Overall, I hope you guys enjoyed learning a little more about or pricing process. Obviously price increases aren’t the greatest thing to look forward to, but I hope you have a better understanding as to why it’s a necessary evil. Between comparing the competition, and adjusting to our distributors adjustments, it’s not easy to keep up with the flow of the economy. I want to thank each and every one of our loyal customers for their understanding of the changes, and I look forward to not having to adjust the pricing again until late 2019.


Until next time,

-Your CBG