Increase Revenue and Profits by Turning Your Coffee Into a Great Gift

SmartCup's Perfect Cup of Coffee Kit

SmartCup's Perfect Cup of Coffee Kit

Marisa China is Co-Owner of Bella Vita Bags and wrote this article for Coffee Business Solutions. It talks about packaging product to improve sales. Our ” Perfect Cup of Coffee Kit” is a good choice when you want to deliver a coffee gift solution. It allows operators and distributors the ability to provide their customers with French pressed coffee in a complete to-go kit.

In these economic times, we are all looking for ways to improve our product’s marketability. Although an undoubtedly difficult market, the coffee and gourmet food industry has experienced some unique benefits from these market conditions. As consumers spend less going out to restaurants, they are spending a bit more on gourmet foods. These gourmet food purchases are considered inexpensive luxuries—an affordable treat. This trend has transcended into gift giving as well. Consumers are purchasing more consumables as gifts, with gourmet foods leading the charge. We will look at how we can take advantage of this trend by transforming your everyday coffee product into an attractive and profitable gift item.

Food has always been a great gifting item whether it is home baked cookies for a neighbor during the holiday season, an exotic gift basket purchased for a corporate gift or the old reliable bottle of wine given as a hostess gift, you somehow cannot go wrong. In recent years, as overall gifting has decreased, food gifting has increased. Despite the economy, recent studies have continued to indicate that certain gourmet food gift items are still growing as they are affordable, unique and have a high-perceived value.

With a little imagination, there are so many different wraps, ribbons, bows and baskets and complimentary accents that can be used to create a beautiful gift in any variety of looks. Depending on the materials used and your imagination, you can invest a little or a lot. Either way, you should be able to increase the retail price by an additional 50 to 100 percent.

SmartCup Packaging

If you are operating on a tighter budget, something as simple as a complimentary ribbon and possibly a decorative accent, with or without cellophane wrap, will dress up your coffee product. Gift baskets can be costly and more involved, but can result in higher revenues. A gift basket allows you to couple your product with a range of complimentary products. The quantity and quality of products used will determine the cost, look and experience for your customer.

There are also other gift packaging options that are in the mid-ranged price that allow you to slip your product into a bag creating an instant gift. You can then choose to further enhance the gift bag with ribbons and tissue.

Whatever method you choose, the options are limitless. When determining how much time and money you should invest, you should consider the following:

Your Product’s Price Point – The price point of your product is critical as too high may result in lost business and too low will result in low margins. As a rule of thumb, you should try to make your gift item no more than two times more expensive than your standard retail price point. For example, if your standard retail price point is $10, adding an additional $1 to $2.50 in gift packaging costs will result in a $14.99 to $19.99 gift retail price point.

Your Client Base – If you are located in an affluent area, this may call for more extravagant gifting options. Offering a gift basket with a variety of goodies, where your product is the main event, would be appropriate. You can include a variety of your items in different flavors, nestled by complimentary gourmet foods and accessories. The value added package will result in a higher price as there is an increased perceived value.

Your Location – Incorporating any themes of your location make it appealing for out-of-town visitors and for gifting ideas. If you are located in a beach area, using sea shells, sand and other nautical type accents will do well. If you are located in the Southwest incorporating chili peppers, kokopellis and other southwestern access will increase sales. Incorporating accents and décor that are completely unrelated, although attractive, may be a slow seller. Unless you have determined that your tastes are in line with that of your customers, try not to let your tastes blindly determine your product offering.

Universal Appeal – Creating a few different gift items that are well-priced and have a universal appeal is how to get the best bang for your buck. These will be your quickest sellers and will be appropriate for all occasions, whether it is a birthday, wedding or anniversary. You can always have extra complimentary add-ons for the customer allowing them to personalize their gift free of charge. You can do this by simply having a box with a variety of small adhesives, mini gift cards or a variety of other accents that the customer can choose to personalize their gift. Start out slowly and you can see what works best. You can always add as you go and do not be afraid to ask your customers what they like.

In summary, a little creativity will go a long way in turning your product into an attractive gift that stands out among the rest. It is not very often that economic downturns present us with opportunities. Taking advantage of this trend of increased gourmet food gift giving in this challenging market will quickly result in increased revenues and profits.   CBS

____________________________________________________________

Marisa China is Co-Owner of Bella Vita Bags and has an MBA from Thunderbird University (American Graduate School of International Business). She can be contacted at 877.827.3638, by email marisa@bellavitabags.com, or visit www.bellavitabags.com.