jwalton Posted February 17, 2017 Share Posted February 17, 2017 I am just getting my vending route started in OCS. I have a smaller nursing home that would like a proposal for coffee service from me. I am going to offer single serve coffee using a flavia c500 brewer. What is a normal mark up on product and supplies that I am providing? Is it better to charge by the cup of coffee or by the case? If I charge by the cup I am assuming that I sell the location packs of coffee by a unit price with my mark up included instead of selling a full case with my markup, is this correct? Sorry for the newbie questions, any advice would be much appreciated. Link to comment Share on other sites More sharing options...
davekro Posted February 22, 2017 Share Posted February 22, 2017 I have steered clear of Flavia and Keurig K-cup for traditional Newco brewers and higher end Bean to Cup for large accounts w/ deep pockets. With the high price of single serving packaging like Flavia & K-Cup, it is near impossible to get OCS type margins of 40% profit. Especially for small accounts that are tight on budgets, glass pot brewers and sell fractional packets of coffee it is much easier to get better margins as you are not buying and paying Flavia name brand higher costs. Have you asked this account what they have in mind for a type of coffee service/ equipment they might be inclined towards? What is your reason to propose a Flavia vs a more standard OCS coffee brewer w/ frac pack coffee? Link to comment Share on other sites More sharing options...
MicroEspresso Posted November 27, 2017 Share Posted November 27, 2017 On 2/22/2017 at 3:24 PM, davekro said: I have steered clear of Flavia and Keurig K-cup for traditional Newco brewers and higher end Bean to Cup for large accounts w/ deep pockets. With the high price of single serving packaging like Flavia & K-Cup, it is near impossible to get OCS type margins of 40% profit. Especially for small accounts that are tight on budgets, glass pot brewers and sell fractional packets of coffee it is much easier to get better margins as you are not buying and paying Flavia name brand higher costs. Have you asked this account what they have in mind for a type of coffee service/ equipment they might be inclined towards? What is your reason to propose a Flavia vs a more standard OCS coffee brewer w/ frac pack coffee? I agree with you on this one. K-cups and Flavia made it very hard for many independent OCS companies to survive, selling at very high prices and not having much good coffee. Link to comment Share on other sites More sharing options...
BlindVending Posted November 28, 2017 Share Posted November 28, 2017 If its a decent sized account look into cafection bean to cup machines. Very attractive appearance, parts are everywhere and one of the best brew groups ever designed. Than charge them for the beans, cups, sugar packets, stir sticks etc etc. You will make much better profit margins this way and thank me in the future for staying clear of the flavia packs Link to comment Share on other sites More sharing options...
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