Finding Buyers

Here is a colloquy on finding buyers, mine is in bold, my correspondent in plain, edited for some confidentiality...

8:24 pm 

I'd like to know more about your Fall 2012 course. I'm in the process of learning all I can about importing and exporting before starting a company and I came across your book on Amazon.  Please let me know what background I can give you on me.

The fall course info can be found at www.johnspiers.com.  If you could trade in absolutely anything you wanted what would it be?

7:26 am

The Register link on your website doesn't have a college near me. The course is conducted on-line through IRC, right?  Also, I don't see the cost for the course on the Register link.  When I looked at it on my mobile, it said $95...but that can't be right.

If I could trade in anything I wanted?  Coffee!!

Let me know how I can register. 

Yes, it is an online course you can take form home or work, on your computer...

it is $95

and you can register here

http://seattleteacherscollege.net/tradworinnin.html

Next question... how come coffee?

7:55 am

I'll be signing up. 

I love coffee.  But aside from that, it's the second most traded commodity on the planet after oil.  Annual US coffee consumption averages 4.2kg per capita.  Mexico, a major coffee producer, only consumes 1.2kg per person annually.  There's a big potential for growing the market for roasted coffee.

OK...  the first answer was right.  The second answer might be factual, but it is wrong.  

Do you think the monster businesses in coffee are unaware of exactly who drinks what and where the opportunities are?

Tell me how you will beat Starbucks, nescafe and so on in Mexico.  Careful, because I have a neighbor who is back from selling coffee to mexicans.

it's not too early to begin thinking...  I look forward to your reply...

9:18 am

I guess the answer is, is that I don't beat Starbucks, nescafe, Folgers, whoever, in Mexico or the US. Those guys already have a team of market researchers, dedicated buyers, distribution networks, etc. etc. I'd have to focus on smaller roasters, cafes, shops, in both markets. Businesses who would actually talk to me rather than just wait for the regional sales rep from Starbucks or Nestle to call and put them down for X pounds a month.

OK so you are not delusional...  good.

What keeps smaller roasters in business, why will they want to buy from you?

9:34 am

I'd like to think I'm not.

Smaller roasters stay in business because of dedicated client bases; their ability to keep costs low and, accordingly, their margins higher; by offering fair trade coffee, unique blends, "house blends" that are roasted by a roasting company and then "blended especially for So and So Coffee, Co."  Honestly, I think some of them stay in business because they're not Starbucks.  To get them to buy from me, I'd have to offer them a better wholesale price than what they're currently getting or something unique.  Or maybe I could get them interested in buying from me because I'm not a big distributor, but local, available, responsive, and willing to find what they need to make their business unique.

...

Smaller roasters stay in business because of dedicated client bases ...

***  Dedicated to what?  Are the costs of local shop lower than Starbucks?  Or higher?  If so, are local's prices lower than Starbucks, or  higher?  Is it possible that the costs, margins and prices are all higher than starbucks?  And if so, why do they customers come?  Is it USP?  Unique, as you note, selling proposition?  IN general the answers to all these questions are yes.  the take-away is small and start up compete on design, not price.***

Honestly, I think some of them stay in business because they're not Starbucks. 

***Right, and starbucks has moved into that market by designing non-starbucks starbucks.  Wine bars with coffee.***

To get them to buy from me, I'd have to offer them a better wholesale price than what they're currently getting or something unique. 

***You can never win on price, so that leaves something unique.***

Or maybe I could get them interested in buying from me because I'm not a big distributor, but local, available, responsive,

***Those are standard offers, not competitive offers.***

and willing to find what they need to make their business unique.

*** Bingo.  Raison d'etre.  For which both you and they can charge more since you need to charge more because the volumes are less.  Make more doing less.  

The most important thing is business is the customer.  The hardest thing in business is getting the product or service right.

All products are solution to problems.  What problem in coffee needs solving, thus the market needs you?***

11:30 am

I think I hear what you're saying...the problem then with most coffee--coffee house coffee or vacuum bagged coffee--is that it doesn't have a story.  Even fair trade certified just tells the customer that some coffee farmer in the jungle isn't getting jerked around on the price of his product.  What then I'd have to sell to smaller shops is the story of the bean, videos of the farmers, crafts from the kids in the village where the stuff is grown, and then give the customer a chance to respond back--videos, letters, thank yous, etc.  Make getting a cup more interactive and give the customer a reason to come back other than the coffee he's drinking.  Then I'd be selling the shop not just fair trade coffee, unique blends, or single origins, but a service that provides the store coffee and gives it a chance to offer customers the opportunity interact with where their cuppa comes from.

So you have formed a hypothesis...  now before you invest a dime, test that hypothesis...

Go to those coffee shops, say a half dozen,  that you think will desire what you have on offer, and then say to them:

"I believe .the problem then with most coffee--coffee house coffee or vacuum bagged coffee--is that it doesn't have a story.  Even fair trade certified just tells the customer that some coffee farmer in the jungle isn't getting jerked around on the price of his product.  What then I'd have to sell to smaller shops is the story of the bean, videos of the farmers, crafts from the kids in the village where the stuff is grown, and then give the customer a chance to respond back--videos, letters, thank yous, etc.  Make getting a cup more interactive and give the customer a reason to come back other than the coffee he's drinking.  Then I'd be selling the shop not just fair trade coffee, unique blends, or single origins, but a service that provides the store coffee and gives it a chance to offer customers the opportunity interact with where their cuppa comes from I believe if I solve this problem, you will buy from me.  Am I right?"

Can you do that?

11:43 am

Yeah, I can definitely do that.  I'll give you a run down as soon as I have the results.

11:54 am

What if they say, "Yeah, you are right.  How do I buy from you?" What do I tell them while I'm testing the idea out?

Like Arnold, you say "I'll be back..."

With customers, the suppliers get very helpful real fast...

Feel free to forward this by email to three of your friends.

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