Case Study Coffee Roasting in Arizona

An Arizona coffee roasting client called me today with regards to attracting the right prospects and generating more referrals.  For eight years this coffee roaster has been able to generate six pounds per batch of coffee in his roasting machine.  He has sold his coffee mostly at local farmer markets and through the Internet.  Currently he is creating a store front in Arizona.

Brendan wants to increase the size of his business.  The facts as he tells it are:

·      One of his in town local competitors wants to retire.

·      The owner recently lost the lease in the space their coffee roaster is located.

·      The competitor’s roaster can yield 11 pounds of coffee per batch and is valued at $25,000.

·      Recently he was befriended by Bob.  Bob is:

o   Retired from California

o   Sold his home in California

o   Is waiting for the housing market to decrease so he can purchase a retirement home.

o   Most important, Bob is a coffee drinker and loves Brendan’s coffee.  They have become fast friends.

When I spoke to Brendan he told of his interest in buying his competitor’s business which includes the roaster and client list.  Brendan already knows the competitor’s clients.  People who know of Brendan and his coffee say that his roast is far superior to his competition.  He agrees, and if he purchased the competitor business he would change their recipe.  His question to me was, “How do I approach Bob, who has cash sitting somewhere from the sale of his California home, to invest in the purchase of my competitor’s business?”

Brendan told me that Bob has yet to express an interest in investing in Brendan’s coffee roasting business.  The first step would be to ask Bob of his interest.  The next step would be to discover the asking price of the competitor’s business.  Bob would be a silent partner having the bulk of the risk invested as Brendan can only invest his time and roasting experience.  Thus, most of the rewards would go to Bob.  We also discussed the potential for a balloon investment on the front end of the transaction as well balloon payments upon completion of the transaction.

The Best Solution

Taking control of what you can control on your own is the key to this solution.  Investing your time, energy, and creativity supports this solution.

Brendan has time and know how to make roasted coffee.  He knows his competitors’ clients.  My suggestion to him is:

·      Roast coffee that is better than your competitor’s.

·      Bring samples of it to your competitor’s businesses.

·      Talk with owners/managers at each business.

·      Offer them free samples saying, “If my product is better consider offering my coffee to your customers.  Pay me nothing if my product is not as good.”

·      Once the samples are consumed and it is agreed that Brendan’s product is superior ask, “What is the next step to getting our product used in your store?” 

The saying that applies here is, “People do not care about all you know.  They only want to know how much you care.”  Brendan needs to get the word out about his coffee so that those in his target market will go to the restaurants in his town for his coffee.  With better coffee sales and consumption, restaurants will increase the sales of their food choices as well . 

Finally, knowing that his competitor’s lease has expired is a fair advantage.  Soon her retirement and $25,000 coffee roaster will hinge on removing the roaster from its existing space.  My guess is someone will purchase it for pennies on the dollar.  Maybe it will be Brendan!

For questions and more information see contact access below:

What are you willing to do to attract the right prospects and generate more referrals? To contact INTEGRITY Networking Solutions for availability and information, call/text 760-439-4623. You can contact Gerry by mail at 5107 W. Wild Burro Spring Drive, Marana, AZ 85658, e-mail to gerry@integritysd.com. For more information, go to www.integritysd.com

Gerry Rose runs INTEGRITY Networking Solutions in Marana, AZ. He works with people in business who want to attract the right prospects and generate more referrals. More than 10,000 businesses have been presented the INTEGRITY Networking Solutions system in San Diego, Riverside, Orange Counties, California and now in Arizona.

Gerry’s stimulating presentation Unlimited Prospects, Unlimited Referrals is ideally suited for small business owners, home-based businesses, and independent professionals who want clearer direction and want to attract more prospects, develop dynamic systems, and strengthen their companies’ accountability. Gerry does one on one consulting, conducts a range of keynote speeches from thirty minutes to full-day education workshops. His book series, Unlimited Prospects, Unlimited Referrals, are available on the website, www.integritysd.com.

Gerry has more than 20 years’ experience directing business owners how to grow their businesses. He is a networking dynamo. Those who know him will assure you that he does a great job of bringing people together—which is why he started Integrity. Involved with networking organizations since 1984, Gerry is a Distinguished Toastmaster, and has chaired numerous chambers of commerce and non-profit organizations.