Wholesaling Coffee | How Much Does It Cost?

What's up coffee people. This one's a deep dive into the cost of my teams coffee roasting operation. I'm always talking about the cost to get started but wanted to shake things up a little. Here's a real look at what it would cost to jump into the game where we're at right now! The goal is that at some point you can watch my videos back and have a nice chronological "how-to" series.
For quicker more frequent updates on what's going on with our company-follow @roastedcoffeecompany on IG!! Gill has taken over and is killing it.
More coming soon people-we got BIG things in the works. Keep killing it my friends.

[@bonde.johnson]

Straight to the coffee -> 2:44

[@yuryrushik5598]

Who is a green coffee supplier ? 3:48

[@bonde.johnson]

@@yuryrushik5598 www.ictcoffee.com

[@apascafe2902]

Thanks for the information. We are just now starting a company that sells coffee wholesale from Chiapas. Your info helps in comparing cost and the operational side of the coffee biz.

[@dpac9579]

Are you still in the biz? Looking for a wholesaler.

[@maryamleoul8746]

So great to see you growing. I enjoy watching your video’s. I myself in the process of starting a roasting business. What would you suggest for a grinder? Thank you

[@bonde.johnson]

Thanks, Maryam! I appreciate the comment. For grinders I would suggest looking at the 'Grindmaster' brand grinders on eBay. You can usually find a great deal and they're awesome grinders. That of course would be commercial, if you're looking for home use, I'd say either baratza -- amzn.to/3j1EJ7a or the Ode grinder by Fellow. Hope that helps!

[@gwhomechoice]

Hey Bond some really great videos and great info. I'm a very new roaster in Hamilton Canada and I'm curious regarding your ROI why you don't include your labor cost even if it's you doing all the work and as well including you energy costs to run your equipment. Again thanks for some truly wonderful information and all the success to you and your business.

[@bonde.johnson]

Hey! I appreciate the comment. Congrats on everything. We don't pay for our energy cost, our utilities are included in our rent. We don't account for our cost of labor at the moment-all capital and resources go directly back into the company. Hope that helps!

[@therookiefisherman5234]

Wow, interesting, where did you learn how to roast because I have watched videos on it and there is a lot of science behind it.

[@bonde.johnson]

I learned to roast through trial, error, and tons of books. My major is college was nutrition science and I had many helpful courses in food chemistry that came in handy when understanding the process!

[@TomFord_]

Bonde as usual great content my friend! I really enjoy your channel. Business acumen is contagious. The more I watch, the more envision my online business in specialty coffee, becoming a reality very soon. I'm just about done with my business plan and then my cash flow which is a bit tricky. Don't want to ask for too little funds and also not too much. Packaging in Toronto is nutso as far pricing. Because I don't know if I should add a roaster or not. I can definitely do with a partner in the US, I'm located in Toronto. I'd like to discuss with you how we can make a business partnership that is mutually beneficial.

[@bonde.johnson]

I appreciate the comment as always Tom. I'd be happy to discuss how we could work together in some fashion. Feel free to shoot me an email at [e-mail] and we can discuss further!

[@TomFord_]

@@bonde.johnson Appreciate you I will be in touch.

[@bryanacevedo4724]

Wow! I really appreciate the info given and I admire you for your transparency.

[@bonde.johnson]

Hey Bryan--I appreciate that! Transparency is what it's all about haha

[@manuelvanegas3838]

Hi Bonde, Thank you for sharing all this information. I see your profit per bag but you didn't included the expenses to run your operations into the cost of that bag. Ex. Rent, labor, electricity and others. Can you talk about those expenses?

[@ElFIeldso]

I had the same question. How are you account for labor cost per bag?

[@oscarcarcamo2730]

Thank you for sharing! really good information, I been selling coffee person to person and I been thinking on selling wholesale, can you please share how did you get your first accounts? and what challenges should I expect to encounter? Thank you!

[@LMM2121]

I like the breakdown on the numbers! I just bought a tiny 200g roaster. I’ve been playing on the stove with a pan for awhile now.

[@bonde.johnson]

I appreciate it man!! That’s where it all starts. Keep at it and let me know how things process☕️

[@markc2182]

Thank you for the breakdown on your costs. Very informative!

[@bonde.johnson]

Thanks, Marc! Glad you found it useful!

[@24.Hustle]

Did you start your company with any business loans or investors? Or did you bootstrap it from the beginning? Either way, mad respect bro. You’re building an empire.

[@witeko21]

You have a great page. Any advice you can give me? I am working directly with farmers from Guatemala And want to sell green beans here in the USA instead of roasting it. Save time and money.

[@bonde.johnson]

Hey Edwin! I appreciate the comment. I wish I had more insight on the dynamic and logistics of operating in the green coffee bean industry. My advice would be to connect with somebody who specializes in that realm. Sorry I don't have more info to give you!

[@JoeKane-c1e]

Where do you get your bags and who do you buy your beans from?

[@GaryHuntPianoman]

Hi I really love your channel you’ve helped me so much but I’m interested in your pods and why in the world they cost so much is that for a sealing machine or are you still using I fill Systems where you don’t have to use a machine could you expand a little bit on there for me I would sure appreciate that

[@bonde.johnson]

Hey Gary! I appreciate the kinds words. And that's a great question. The cost was just for pods through iFill, so we would still be sealing them ourselves. The extra cost is for the branding aspect which puts the minimum purchase to 12,960 pods. There are also associated one time set-up fees that drastically increase the price of this first order. I will make a video soon on how we do our pods!

[@brookchef]

Thank you for sharing your journey. Where are you buying your bulk beans from at this price?

[@bonde.johnson]

I appreciate the comment, Brian. Our new supplier is ICT Coffee--great selections and great practices!

[@brookchef]

@@bonde.johnson Thank you.

[@makaimedia3178]

Hey Bonde, thanks for the input. I want to know how are you getting into cafes and other businesses to buy wholesale. My experience with cafe is that they have companies that gives equipment and in turn they have to buy their coffee from that company. Also I use to live in Irvine up until 3-1-21. Am based in San Diego now, I want to know how to get investors, right I get really good coffee from one of the big chains, not ICT and I have a roaster who roasts for for $1 a pound. I’ve been having a hard time getting sales though. I want to send you a sample of my coffee, let’s connect and talk if you don’t mind. Thanks

[@bonde.johnson]

Makai! Feel free to reach out to me at [e-mail] I am happy to have a preliminary discussion with you!

[@jorgenunez7021]

how often would you sell the 5lb bags to cafes? what approach do you take for that?

[@bonde.johnson]

We would sell those bags on a bi-monthly (every two weeks) basis depending on the store. Some will require one bag (if not focused on coffee) and others might require 4 or 5 per order. The approach can be tackled a few different ways--I am making a video very soon on this topic!

[@craigsmithYT]

Hey Bonde, Some awesome Insights into wholesaling, I have just started that journey myself with Cofaidh Ceilidh, (the barrel aged coffee) chatted in your livestream a few weeks back. Wouldn't mind opening a dialogue up if your still interested in the barrel aging process. Thanks for the video insights

[@bonde.johnson]

Hey Craig! Yes I remember! I'd love to set something up. Shoot me an email at [e-mail] so we can get the conversation started and figure out a good time to schedule a chat. Might make for a good video!

[@MindfulVideos1000]

Where did you buy your 2,000 bags from? Who is your supplier for coffee bags?

[@zi0cat]

Excellent video. Good luck to Roasted and on your new endeavors! As long as Roasted keeps sending me good, fresh product I'll remain a loyal customer.

[@bonde.johnson]

Joe!! You’re the man-always quality, always fresh. Hope you’re doing well👍🏼

[@zi0cat]

@@bonde.johnson couldn't be better!

[@Southern-blogger]

We have recently started dropshipping coffee, we have to charge 18.99 plus shipping for a 12oz bag. Is this to pricy for us to be successful with??

[@acac4348]

I can't find green beans for that low a price? What wholesaler did you use for that sub $3 green coffee per pound?

[@englishcool247]

cool vid...greetings from El Salvador

[@juliogutierrez8077]

Don get it, profit 75%? Are you selling the coffee green? are you and your partners getting paid a salary? are you depreciating the roaster and other equipments? are you paying a lease for the place? utilities?

[@bonde.johnson]

When I say profit I’m speaking only to the price breakdown per item sold. The other expenses you mention don’t impact our profit/bag. They will impact what we show in our balance sheet when we go back in and debit and credit all of our accounts but that wasn’t the discussion in the video. The accounting side of our business is something I leave to our accountant! We don’t pay ourselves a salary yet as we have certain financial thresholds we would like to cross prior to doing so! Hope that clears things up.

[@k1defjoel397]

I came to you by way of deer antler velvet spray and left motivated for coffee sales.

[@bonde.johnson]

Hahaha I love to hear it, Joel!

[@GaryHuntPianoman]

Hey Bondi question here your coffee prices do they include your 4 ounce loss during the Roasting process where are you posting that loss ?

[@bonde.johnson]

Hey Gary, our prices account for all of our expenses for all our products. We do factor in loss for all roasting. However, the price works out to be negligible--especially with our pods which have a small quantity of coffee to begin with.

[@GaryHuntPianoman]

Me again...I would like to know how much your sell price to grocery stores ? certainly not 12.50 ? The stores I sell to only pays about 8- $9.00 for a pound (not 12 oz) of coffee in my area .

[@bonde.johnson]

Hey Gary! We typically wholesale our coffee for $8.00/12oz. Thats a 36% margin for the grocery store which is on the higher end. There are some we wholesale to for $8.50/12oz. Hope this helps!

[@GaryHuntPianoman]

@@bonde.johnson thank you so much Bonde

[@margretholmes3009]

Hey Bonde, i've enjoyed watching your videos. i'm wondering how you have and would approach cafe's about implementing my coffee into their store and where i should start

[@bonde.johnson]

Great question! I appreciate the comment-I’d be happy to expand on this for you. I have a good idea for a video that’ll I’ll be doing soon!

[@cj.stewart5908]

Congadulations Sir

[@emilyhernandez7822]

Hi Bonde. Any guidance you can give us about the licenses/permits needed to wholesale coffee? We are located in Florida

[@bonde.johnson]

HI Emily, the significance of the licensing and permitting usually goes hand in hand with the level at which you're operating (how many units you're selling annually). To wholesale you will need an inspection from the health department of the facility out of which you're roasting. Hope that helps a little!

[@ericgillette2855]

THANKS SO MUCH FOR SHARING 👍🏾

[@rrs26a]

What about space, electric or gas, maintenance, spare parts, labor, taxes.

[@jenessie2294]

Good Stuff Bonde, I'd love to see you open your own coffee shop! I think that would be Dope!

[@russelrona376]

i want to start coffee sale from other country any videos for that ?

[@tstokes661]

$12.50 is the retail price right? Curious what your wholesale pricing structure looks like

[@bonde.johnson]

$12.50 is the retail price-I've had a couple people ask me about this so I'll in a video soon! Grocery stores typically like to see ~30-40% profit.

[@reviewswithruby5080]

Nice to ses your video again

[@ericnierenhausen4981]

What do you charge the grocery store/ cafe per lbs of coffee??

[@bonde.johnson]

Hey Eric--we sell our coffee at a 36% discount to wholesalers and could actually afford to sell at a much lower number than that. With the grocers retailing at $12.50/bag they make that 36% back in profit so it's justified on all ends. Hope that helps!

[@ericnierenhausen4981]

@@bonde.johnson for sure. Love the videos, keep it up.

[@ericnierenhausen4981]

@@bonde.johnson same cost to the coffee shops in the 5 pound bags?

[@SamHoustonNatForestLife]

GOOD INFO!!!! THANK YOU!

[@bonde.johnson]

Thanks, Julio--I appreciate the comment!

[@audionutmike]

Bonde, I see your coffee business closed down, what happened??

[@bonde.johnson]

Hey Michael! Going to make a video on that soon.

[@zi0cat]

I couldn't pick up... On the phone

[@seifeselassiealemu7252]

I don't think the coffee you bought is arabica quality with this price you can't even buy it from the farmers.

[@espjason]

You waffle alot but eventually it was informative