SB

Comment

SB1

We conduct marketing research to determine the coffee price. We are not cheap but not overly pricey. We have never been big on pricing but the quality of the coffee and the customer experience. We have had a good corner in the area coffee market for years.

SB2

Competitive pricing strategy—we have tried not to be too high or too low, but to maintain fair but competitive pricing that our customers are willing to pay. In some instances, we are 50 -70 cents cheaper than the national brands. Our customers appreciate the quality of our product. We also roast our coffee beans onsite.

SB3

Sustaining model—ur pricing strategy has been and continues to be to produce the best coffee available at the best price. We have low overhead as we are family-owned and do not have an excess of part-time employees. We focus on pricing the products in a manner that allows us to retain our loyal customer base.

SB4

So, our process is very similar. It is the same as it has been in years, so that part never really changes. What impacts our pricing strategy is food costs. We benchmark with other coffee shop owners to maintain a competitive pricing strategy. In the coffee shop business, you are not going to make much money unless you change your price point or sell more units.

SB5

Premium product pricing—I could sell my coffee for less, but then I have devalued my product. I have a premium product, and we give it a premium price tag. We are a coffee by choice destination. If you are running five, seven, 10% on earnings before interest, tax, depreciation, and amortization (EBITDA), you are doing okay.