Chapter 76
COFFEE-SELLING CHART
BY A.J. DANNEMILLER
Showing Prices to Be Obtained to Realize Certain Percents _on Sales_ of Roasted Coffee
_Cost Roasted_ _& Packed_ 10% 11% 12% 13% 14% 15% 16% 17%
4 4.44 4.50 4.55 4.61 4.67 4.72 4.77 4.82 4-1/2 5.00 5.06 5.12 5.18 5.24 5.30 5.36 5.43 5 5.55 5.62 5.68 5.75 5.82 5.89 5.96 6.03 5-1/2 6.11 6.18 6.25 6.33 6.41 6.49 6.57 6.65 6 6.67 6.74 6.81 6.89 6.97 7.06 7.15 7.24 6-1/2 7.23 7.31 7.38 7.47 7.55 7.84 7.74 7.84 7 7.78 7.87 7.95 8.05 8.15 8.25 8.35 8.45 7-1/2 8.34 8.43 8.52 8.62 8.72 8.83 8.93 9.04 8 8.89 8.99 9.09 9.20 9.31 9.42 9.53 9.65 8-1/2 9.45 9.55 9.66 9.77 9.87 9.99 10.12 10.25 9 10.00 10.12 10.23 10.35 10.47 10.59 10.72 10.85 9-1/2 10.56 10.68 10.80 10.92 11.04 11.17 11.31 11.45 10 11.11 11.24 11.37 11.49 11.63 11.77 11.90 12.05 10-1/2 11.66 11.81 11.93 12.07 12.21 12.36 12.49 12.65 11 12.22 12.37 12.50 12.64 12.85 12.95 13.08 13.26 11-1/2 12.77 12.93 13.07 13.21 13.37 13.54 13.68 13.86 12 13.33 13.49 13.64 13.79 13.95 14.12 14.28 14.46 12-1/2 13.89 14.05 14.21 14.37 14.53 14.71 14.88 15.06 13 14.44 14.62 14.78 14.93 15.11 15.30 15.47 15.66 13-1/2 15.00 15.18 15.33 15.51 15.69 15.88 16.07 16.27 14 15.55 15.73 15.90 16.08 16.28 16.48 16.67 16.84 14-1/2 16.11 16.29 16.48 16.65 16.86 17.05 17.26 17.47 15 16.66 16.85 17.05 17.23 17.44 17.65 17.85 18.07 15-1/2 17.23 17.43 17.61 17.80 18.03 18.22 18.45 18.67 16 17.78 17.98 18.18 18.38 18.60 18.83 19.05 19.28 16-1/2 18.33 18.54 18.75 18.97 19.18 19.41 19.64 19.88 17 18.89 19.10 19.33 19.52 19.76 20.01 20.24 20.48 17-1/2 19.44 19.66 19.89 20.10 20.35 20.59 20.83 21.08 18 20.00 20.22 20.45 20.67 20.93 21.18 21.43 21.69 18-1/2 20.55 20.79 21.02 21.24 21.51 21.77 22.02 22.29 19 21.11 21.35 21.59 21.84 22.09 22.36 22.62 22.90 19-1/2 21.66 21.91 22.16 22.41 22.68 22.95 23.21 23.50 20 22.22 22.47 22.73 22.99 23.25 23.54 23.81 24.11 20-1/2 22.77 23.03 23.30 23.55 23.83 24.14 24.40 24.70 21 23.33 23.60 23.87 24.14 24.42 24.70 25.00 25.30 21-1/2 23.88 24.16 24.43 24.71 25.00 25.29 25.59 25.90 22 24.44 24.72 25.00 25.28 25.58 25.92 26.19 26.51 22-1/2 24.99 25.29 25.57 25.85 26.16 26.47 26.78 27.12 23 25.55 25.85 26.14 26.42 26.74 27.06 27.38 27.71 23-1/2 26.11 26.41 26.70 27.00 27.32 27.66 27.97 28.32 24 26.67 26.97 27.26 27.58 27.90 28.24 28.57 28.92 24-1/2 27.22 27.54 27.84 28.15 28.49 28.83 29.16 29.52 25 27.78 28.09 28.41 28.73 29.07 29.41 29.76 30.12
_Cost Roasted_ _& Packed_ 18% 19% 20% 21% 22% 23% 24% 25%
4 4.88 4.94 5.00 5.07 5.13 5.20 5.26 5.33 4-1/2 5.49 5.57 5.63 5.70 5.77 5.84 5.91 6.00 5 6.10 6.18 6.25 6.33 6.42 6.50 6.55 6.68 5-1/2 6.72 6.80 6.88 6.97 7.06 7.15 7.24 7.33 6 7.33 7.42 7.50 7.60 7.70 7.80 7.90 8.00 6-1/2 7.94 8.03 8.13 8.24 8.33 8.45 8.56 8.67 7 8.54 8.65 8.75 8.86 8.96 9.09 9.21 9.33 7-1/2 9.15 9.26 9.30 9.50 9.63 9.75 9.87 10.00 8 9.76 9.88 10.00 10.13 10.26 10.39 10.53 10.67 8-1/2 10.37 10.40 10.63 10.76 10.90 11.04 11.19 11.33 9 10.98 11.12 11.25 11.40 11.54 11.70 11.85 12.00 9-1/2 11.59 11.73 11.88 12.03 12.18 12.34 12.51 12.67 10 12.20 12.34 12.50 12.66 12.82 12.98 13.16 13.33 10-1/2 12.81 12.95 13.12 13.29 13.46 13.63 13.81 14.00 11 13.43 13.57 13.75 13.93 14.10 14.28 14.47 14.67 11-1/2 14.03 14.19 14.38 14.56 14.74 14.93 15.13 15.33 12 14.65 14.81 15.00 15.19 15.38 15.58 15.79 16.00 12-1/2 15.24 15.43 15.63 15.83 16.02 16.23 16.45 16.67 13 15.85 16.05 16.25 16.45 16.67 16.87 17.10 17.33 13-1/2 16.46 16.67 16.88 17.08 17.31 17.53 17.76 18.00 14 17.07 17.28 17.50 17.72 17.95 18.17 18.40 18.67 14-1/2 17.68 17.90 18.13 18.35 18.59 18.83 19.07 19.33 15 18.29 18.51 18.75 18.98 19.23 19.48 19.74 20.00 15-1/2 18.90 19.13 19.38 19.61 19.87 20.12 20.39 20.67 16 19.51 19.75 20.00 20.25 20.51 20.77 21.05 21.33 16-1/2 20.12 20.38 20.63 20.88 21.16 21.42 21.70 22.00 17 20.73 21.99 21.25 21.51 21.78 22.07 22.36 22.67 17-1/2 21.34 21.60 22.88 22.15 22.43 22.72 23.03 23.33 18 21.95 22.22 22.50 22.78 23.05 23.37 23.68 24.00 18-1/2 22.56 22.84 23.13 23.42 23.70 24.02 24.34 24.67 19 23.17 23.45 23.75 24.05 24.34 24.67 25.00 25.33 19-1/2 23.78 24.07 24.38 24.68 24.99 25.32 25.66 26.00 20 24.39 24.68 25.00 25.31 25.64 25.97 26.32 26.67 20-1/2 25.00 25.30 25.63 25.94 26.28 26.61 26.97 27.33 21 25.62 25.92 26.25 26.58 26.92 27.26 27.63 28.00 21-1/2 26.22 26.54 26.88 27.22 27.56 27.91 28.28 28.67 22 26.83 27.16 27.50 27.86 28.10 28.56 28.94 29.33 22-1/2 27.44 27.78 28.13 28.48 28.85 29.22 29.61 30.00 23 28.06 28.38 28.75 29.11 29.48 29.86 30.26 30.67 23-1/2 28.66 29.00 29.38 29.76 30.12 30.51 30.92 31.33 24 29.27 29.62 30.00 30.38 30.77 31.17 31.58 32.00 24-1/2 29.88 30.24 30.63 31.02 31.41 31.81 32.24 32.67 25 30.49 30.86 31.25 31.65 32.05 32.47 32.90 33.33
NOTE, FOR EXAMPLE: Coffee costing 13.50 per 100 pounds (see first
Friends of package coffees point to the saving in time in handling in the store; to the fact that the contents of a package are not contaminated by odors or dirt; that the blends are prepared by experts and are always uniform; that the coffee is always properly roasted; and, in the case of package ground coffee, properly ground; that the brand names are widely and consistently advertised; and that the retailer has the benefit of the packer's co-operation in building up sales campaigns, by means of booklets and local advertising.
_Various Types of Coffee Containers_
Five types of containers are used for packing coffee, namely, cardboard cartons, paper bags, fiber or paper cans, tin cans, and composite (tin and fiber) cans and packages. Fiber packages include paraffin-lined as well as those that have been chemically treated with other water-proof and flavor-retaining substances.
The carton is popular, because it takes up less room in storage and in s.h.i.+pment to the packing plant, and also because the label can be printed directly on the package. Another economy feature is its adaptability to the automatic packaging machine, which transforms it from a flat sheet into a wrapped and sealed package of coffee. Moisture-proof and flavor-retaining inner liners and outside wrappers are generally used to prevent rapid deterioration of the coffee's strength and aroma.
Paper bags are the least expensive containers to be obtained; and when lined with foil or prepared paper, they are considered to be satisfactory. Like the carton, the label can be printed directly on the bag. They also lend themselves to close packing in s.h.i.+pping cases.
Another popular type of container is the paper, or fiber, can which is made of fiber board with a slip cover. Fiber cans are also made with tin tops and bottoms, the metal parts supplying a measure of rigidity to the package. These composite packages are made round, square, oblong, or cylindrical.
Paraffined containers are characterized by an outer covering of glossy paraffin, and are made in various shapes. In some makes, the paraffin is forced into the pores of the paper base, making for added flavor-retaining and moisture-proof properties. In this type of package the label may also be printed direct on the package.
In recent years, vacuum packed coffee has won great favor, first in the West and latterly in the East. Tin cans are used. Vacuum sealing machines close the containers at the rate of forty to fifty a minute.
Private tests by responsible coffee men are said to have shown that coffee in the bean or ground, when vacuum packed, retains its freshness for a longer period than when packed by any other method.
_Labels_
Coffee packers must give due attention to certain well defined laws bearing on package labels. Before the Federal Pure Food Act went into effect on January 1, 1907, many coffee labels bore the magic names of "Mocha" and "Java," when in fact neither of those two celebrated coffees were used in the blend. Even mixtures containing a large percentage of chicory, or other addition, were labeled "Pure Mocha and Java Coffee."
The enactment of the pure food law ended this practise, making it compulsory that the label should state either the actual coffees used in the blend, or a brand name, together with the name of either the packer or the distributer. When chicory or other addition is used, the fact must be stated in clear type directly following the brand name. The reading matter on the label should contain facts only, and should not bear extravagant claims of superior quality or of methods of preparing or packing that have not been followed.
_Coffee Packaging Economies_
During the United States' partic.i.p.ation in the World War, tin became practically un.o.btainable, and coffee packers turned to paper and fiber containers as subst.i.tutes in packaging nearly all grades. In this war period, commercial economy became a fetish in the business world; and coffee packers worked to save not only material, but s.h.i.+pping s.p.a.ce, labor, and time. Paper and fiber containers proved to be not only practical but economical packages. Because of their war-time experience, many packers changed permanently to square and oblong containers. They found these containers could be packed "solid" in s.h.i.+pping cases, leaving no unfilled s.p.a.ce between packages as is the case with cylindrical cans; also, smaller s.h.i.+pping cases could be used. As a further measure of economy, several packers changed from the square "knocked-down" paper or fiber carton to the oblong carton that is made up, filled, and sealed by automatic machinery from a flat, printed sheet of cardboard. This type of container is generally lined or wrapped with a moisture-proof and flavor-retaining paper.
There has been a tendency in recent years to standardize coffee packages as a means of working out packaging and s.h.i.+pping economies. One of the leading American proponents[336] of standardization said:
One of the first arguments raised against standardization is that it eliminates individuality, and individuality is one of the big guns covering the front line trenches in the war of compet.i.tion.
The folly of recommending that every one-pound coffee carton, for instance, should be of exactly the same size and shape is immediately apparent; but let us not confuse such unification with standardization.
a.s.suming that a pound of coffee may be safely contained in seventy-two cubic inches, we find that a carton three inches thick by four inches wide by six inches high will serve our purpose; and, as an ill.u.s.tration of extremes, a carton three inches thick by three inches wide by eight inches high, or one [carton] two inches thick by six inches wide by six inches high, will each have exactly the same cubical contents. In fact, there is an almost infinite variety of combinations of dimensions which will contain substantially seventy-two cubic inches.
As an example of how coffee packages can be standardized this authority cites the following sizes of flat-sheet containers and their respective dimensions and capacities:
THICK AND WIDE HIGH CONTENTS Size Inches Inches Cubic Ins.
1 lb. 2-5/8 by 4-1/2 6-1/4 73.83 1/2 lb. 2-1/4 by 3-1/8 5-1/4 36.91 1/4 lb. 1-9/16 by 2-5/8 4-1/2 18.46
[Ill.u.s.tration: VARIOUS TYPES OF COFFEE CONTAINERS
THIS GROUP OF LEADING TRADE-MARKED COFFEES ILl.u.s.tRATES THE WIDE VARIANCE IN STYLES OF CONTAINERS USED BY COFFEE-ROASTERS. THE PACKAGES SHOWN ARE AS FOLLOWS:
1--Double carton. 2, 3--Cartons. 4--Fiber sides, tin top and bottom, friction cover. 5--Vacuum tin can. 6--Fancy paper bag.
7--Machine-wrapped paper package. 8--Fancy paper bag. 9--Carton with patented opening and closing device. 10--Wrapped paper package. 11--Tin can with slip cover. 12--All-fiber can with slip cover. 13--Tin can with slip cover. 14--Lithographed tin can with friction cover. 15, 16--Tin cans with slip covers. 17--Squat tin can. 18--Napa-can. 19, 20, 21--Vacuum tin cans.]
The advantages claimed for these packages are that each is well proportioned and makes a good selling appearance; each bears a direct relation to the other two; and all may be handled with uniformly good results on the same set of standardized packaging machinery. One size of s.h.i.+pping case, instead of three, may be used to hold exactly the same number of pounds of coffee, regardless of whether s.h.i.+pped in one-pound, half-pound, or quarter-pound cartons. For smaller dealer a.s.sortments, any two, or all three sizes also exactly fit the following standard s.h.i.+pping cases:
For 36 lbs., 13-7/8" by 16-1/2" by 12-3/4" high For 54 lbs., 13-7/8" by 16-1/2" by 19-1/8" high
This standardization of packages and s.h.i.+pping containers results in a lower cost of containers and a smaller stock to carry, with attendant reductions in details in purchasing and billing departments, in inventories, and in many other overhead expense factors.
_Practical Grocer Helps_
Wholesale coffee merchandising does not properly end with the delivery of a s.h.i.+pment of coffee to a retailer. The progressive wholesaler knows that it is to his best interest to help that grocer sell his coffee as quickly as possible; to make a good profit on a quick turn-over; and to dispose of it before the coffee has deteriorated.
Practical co-operation between wholesaler and retailer is one of the most important factors in coffee merchandising. In these days of keen and unremitting compet.i.tion, neither agency can stand alone for long.
The progressive wholesaler does not sell a retailer a poorer quality of coffee for any particular grade than his trade calls for, and he does not load him up with more than can be disposed of while still fresh. He gauges the capacity and facilities of each retail customer, and then gives him practical help to keep the stock moving.
The packer of branded coffees helps by advertising to the consumer in magazines and newspapers, always featuring the name of his brands; and he supplies the grocer with educational pamphlets and booklets on the growing, preparation, and merits of coffee in general, with an added fillip about the desirability of his particular brand. Through his salesmen the packer shows the grocer how to display the coffee on the counter and in the window, and often supplies him with placards and cut-outs featuring his brand. He co-operates in staging special coffee demonstrations in the store; instructs the retailer in the importance of teaching his clerks how to talk and to sell coffee intelligently; and how to prepare advertising copy for his local newspaper, so as to get the fullest measure of profit from the wholesaler's national or sectional advertising.
_Coffee Sampling_
The sampling method of creating a demand for merchandise has been tried in the wholesale coffee trade, only to be abandoned by the majority of packers. With other and more satisfactory ways of creating consumer interest, promiscuous sampling was found to be too expensive, in view of the comparatively small returns. One indictment against sampling is that it does not make any more impression on the average person than does an advertis.e.m.e.nt that appears only once, and is then abandoned. Wideawake merchants have learned that the public's memory is exceedingly short; and that they must keep "hammering" with advertis.e.m.e.nts to establish and to maintain a demand for their products.
It would seem that the logical place for sampling is in the retailer's store, especially in connection with demonstrations. Many progressive grocers stimulate interest in their coffees by serving, on special demonstration days, small cups of freshly brewed coffee, giving the customer a small sample of the brand or blend used, to be taken home to see if the same pleasing results can be obtained there also. Generally this form of sampling, when properly conducted, has shown a larger percentage of returns than any other method.
_Premium Method of Sales Promotion_
For many years, the premium method of sales promotion has been an important factor in wholesale coffee merchandising, as well as in retail distribution. The premium system has been characterized as a form of advertising; and many coffee packers and wholesalers prefer to spend their advertising appropriations in that way rather than in transitory printed advertis.e.m.e.nts in newspapers and general magazines.
While certain forms of the system have been legislated out of existence in some states, friends of the plan claim that it is a true profit-sharing method which "blesses both him that gives and him that takes"; and that it is an advanced and legitimate means of promoting business, when properly conducted. They a.s.sert that it is a system of sales promotion whereby the advertising expense, plus a large percentage of the profits of the business stimulated thereby, is automatically returned to the dealer buyer, without increasing cost or lowering the quality of the product so advertised; that it eliminates advertising waste by producing a given volume of sales for a given expenditure of money; that it reduces the cost of advertising by prompting a continuous series of purchases at one advertising expense; that it promotes cash payments and discourages credit business. Premium users claim that the force of a printed advertis.e.m.e.nt is often spent in stimulating the first purchase; while to secure a premium, the purchaser must continue to buy the commodity carrying the premium, or trade with the giver of the premium until merchandise of a stipulated value or quant.i.ty has been purchased.
In general practise, the premium-giving coffee packer or wholesaler may either offer the retailer an inducement in the form of a desirable store fixture, household article, or item for his personal use; or he may offer it to the consumer through the retailer.
The methods of giving the premium are numerous. To the retailer he may give the article outright with each purchase of a stipulated quant.i.ty of his coffee; or he may offer it as a prize to the retail distributer selling the most coffee in a certain period in a specified territory.
Frequently the premium is of such value that the wholesaler can not give it with any quant.i.ty of coffee a distributer can dispose of in a short time; so he issues coupons or certificates with each purchase, permitting the retailer to redeem the premium when he has saved the required number. Or, the retailer may get the premium with the first purchase by paying the difference in cash.
In giving premiums to consumers, the wholesaler follows the same general plan used with retailers, except that in most cases the coupons are packed with the coffee and are redeemable at the retailer's store.