Feedback from OzBargain Members - Bay Beans Coffee

Lbaybeans on 19/11/2010 - 08:08

Hi Gang,

have been a OzBargain user for a while, and more recently, a contributor of bargains. A lot of my coffee beans website is based on feedback from the community.

the website is www.baybeans.com.au

I have introduced free shipping, new bag sizes, e-books and decaf coffee based on feedback. I wont be offering those things as bargains anymore, as now they form part of my regular offer.

now, the thing is, there is not much margin left to offer compelling deals - when I do, I make them at a loss generally. What would you like to see as a deal, and what would be of benefit to you as a coffee buyer, and seeker of great value?

I would rather offer something of value as a bonus, either physical or electronic, rather than offering a cash discount.

anyway, over to you for hopefully some great ideas.

Thanks.

James.
www.baybeans.com.au store rep

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Comments

  • bluedufflecoat on 19/11/2010 - 11:54
    +2

    If a bonus… how about samplers? I noticed your minimum sizes are 500g… maybe for "bargains", offer a 50g sample (of a different bean) with every purchase of a 500g bag of beans.

  • puchipucca on 19/11/2010 - 18:52
    +2

    As I am seeing that you now offer free delivery for every purchase. I would suggest as amelyn mention to offer sample or maybe % off total price for ozbargainers.

  • StewBalls on 20/11/2010 - 12:21
    -2

    +1 to both of the above! I reckon the free delivery is also a winner, so definitely don't lose that. :)

    Now (flame suit on), please don't take this the wrong way because I do not intend to draw comparisons between your beans & those available on supermarket shelves, but frankly most people are bottom line driven, to a degree myself included. We don't mind paying for quality, but until we know the difference getting us to part with our hard-earned is pretty difficult. This is why I agree with amelyn! :)

    A lot of folks will see prices and ask why they should pay ~$40/kg for your coffee when they can get a 1kg bag of kinda decent Vittoria for $20ish from supermarkets! Again, I'm not attempting to speciously compare the products, just pointing out the effect of human nature on businesses! If you try something like buy two, get one free etc (you'll know what you can value add according to your costs) then that might bridge the gap too! ;)

    I think a classic case in point would be Geronimo Jerky, when they offered free samples we all took one coz it was a freebie; however, once I realised the product was outstanding I have continued to make regular purchases from them, even though if you looked purely at $/kg they are a bit dearer than supermarket stuff! It also helps that they have regular %off sales too, hence puchipucca's idea! Hey, you could even contact Big Chief up there & ask him how this worked out for them! ;)

    Also, do you have a tasting facility or supply to any cafes in the Bay or Hunter area where locals can go try your coffee? I'm in Newy, and I'm up at the Bay frequently so I'd love to give your product a try! :)

    • AntMan76 on 20/11/2010 - 14:03
      -5

      You can't really compare supermarket beans (which are so unfresh it isn't funny) to freshly roasted beans.

      I agree offering smaller 'samplers' (but not free, just cheap, because if you offer free I guarantee people will cry for months about how they missed out) might help people understand how much better fresher beans really are, whilst being able to try a few varieties.

      • StewBalls on 20/11/2010 - 14:45

        You can’t really compare supermarket beans (which are so unfresh it isn’t funny) to freshly roasted beans.

        Seriously dude, what part of: "I do not intend to draw comparisons between your beans & those available on supermarket shelves" AND I’m not attempting to speciously compare the products did you not get??? That was made clear enough I thought?

        The purpose here is to identify strategies to help this guy's business to perform better, and you've gotta know what you're facing before you can take action, just stating what we already know isn't really helping mate!

        I suggest you re-read my entire post AntMan! ;)

        • AntMan76 on 20/11/2010 - 14:49
          -4

          You compared $20 supermarket coffee with $40 coffee from Bay Beans.

          I know your point is price, and this will drive some, but just relax. Overreacting much.

        • StewBalls on 20/11/2010 - 14:51
          +1

          You compared $20 supermarket coffee with $40 coffee from Bay Beans.

          No I did not; and I clearly stated twice that such comparison was never my intention!!!

          I know your point is price

          So the point of your first post was? Trolling much?

        • AntMan76 on 20/11/2010 - 15:00
          -5

          Mate seriously relax. Wow.

          And I forgot that when I have an opinion it's trolling. How could I forget that.

        • StewBalls on 20/11/2010 - 15:08

          And I forgot that when I have an opinion it’s trolling

          Asinine comments do not constitute an opinion AntMan.

          Now, I'll ask the question again, and I'm not being at all facetious; what was the purpose of your first post? Most people usually have a rationale, to inform, to critique, to clarify, to refute etc…what was yours? If it's valid I'll happily apologise for getting uppity! ;)

    • baybeans on 20/11/2010 - 17:16
      +2

      thanks for all the feedback. So now I have a few ideas; samples, percent off, etc.

      Your also right in that there may be something in converting people from supermarket coffee to my award winning coffee - quite a big market there if I can show a reason not to base the decision on price alone, which is difficult, because as a consumer myself, I usually do and I think a lot of OzBargainers do too.

      thanks. let me know if you have any more ideas.

      oh, what about some sort of gift, like say a mug, or cool coffee cup? and then what would be a reasonable amount of purchase to qualify?

  • retiredfeline on 20/11/2010 - 18:38
    +2

    I suspect your kind of customer will be loyal to your brand if they like it. So since it may be a small constant percentage of the market, if you can make your brand more widely known, that will translate to more sales. One idea might be some sort of "word of mouth" scheme where people can buy bags to be delivered as gifts to friends and relis.

    Also some kind of loyalty scheme, say buy X in a period get something free with next order will help keep repeat orders coming in.

    And your time-poor customers may appreciate a click and go "favourite order" feature on the website.

    All the best. Online shopping is making brick and mortar shops very nervous.

    • baybeans on 21/11/2010 - 11:03

      I like the loyalty scheme idea, thanks. What I have tried to do though, is cut out the fat, and just get the delivered price as low as I can. but, the more I think about it, my loyal customers DO deserve my appreciation, so I will create a loyalty bonus. I have had one sitting in the background, so should be easy to implement.

  • Doey21 on 20/11/2010 - 22:48

    I haven't tried your coffee so I can't say if its superior or inferior to a coffee store's one, but my local coffee store sells freshly ground beans at about $40kg. I guess the fact that i get it fresh on the day and able to buy in smaller quantities of 250grams for freshness is a big plus for a bricks and mortar store. I would suggest selling 250gram bags but i can understand that it would cost a lot more considering you offer free delivery!

    • baybeans on 21/11/2010 - 11:01
      +2

      Hi Doey21. Your right, Auspost fees are a problem. I can see your point though, and have added 250g bags to the store. the price is not linear compared to the other sizes, but I hope it gives new visitors a chance to try for a low cost with free delivery. I will put the loss down to a marketing cost ;-)

  • salem on 22/11/2010 - 15:02

    The place I buy from is quite small, and local to the ACT, and offers free delivery on 1kg + orders to ACT people. Their price is a bit cheaper than your's, and I get guaranteed next day delivery (because it's local, and the guy just drives by my house on his way home from work or something!). So it's also ridiculously fresh.

    One thing about their free delivery though is your 1kg can be made up of multiple types of bean. Their smallest bag is 250g, but I can get 4 bags of completely different beans still with free delivery, to try them all out until I settle on a favourite (which currently is Ethiopian Yirgacheffe).

    So as for your store, maybe have the price taper off if you get multiple bags of 250 into your order? Maybe only if you pile up 1kg or more total? Since the postage costs would incrementally reduce the more bags that got added to one order, your margins might give you a bit more room to move.

    As for loyalty rewards, another option might be something like a points system, where you get a point for every gram you buy, and you can redeem your points for things (either more coffee (that won't itself generate points), or mugs, or an aeropress, or aeropress filters…etc).

  • baybeans on 23/11/2010 - 10:49
    +1

    Thank you for all the great feedback. I have created a ozBargain offer on the main page for a cash refund - it seems to be what OzBargainers like, and rewards people for larger orders, while giving new people a chance to try with a small quantity.

    I have also made a few changes - smaller 250g bag sizes, free delivery always, decaf, etc - all suggestions from OzBargain.

    have a great week
    James.

    • clandestino on 23/11/2010 - 12:10

      Hi James,

      I think that if you really have a premium product that is better than the rest, you should be able to charge more $$$ for it. Perhaps you will have to seek out the appropriate customer base? I'm not really sure how you would go about doing this- just some thoughts off the top of my head.

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