The price will reflect this. The premium prices we will charge -- in the range of $15 per pound, are commensurate with the price charged by other roasters of our caliber for their coffees. We will offer a slight discount from this for our wholesale business, but only slightly. When cafes sell our coffee at retail, they will probably charge in the $1.75 range for a cup and $3.00-$3.50 for an espresso drink.
With regards to place, the majority of our sales will be conducted either in our store or through the Internet. We expect that our store will handle a significant amount of the retail trade, especially since the cafe will attract customers. The Internet -- along with phone and email orders -- will handle the bulk of the wholesale business.
The promotional message will be based around the high quality of the coffee. We will support this with a considerable focus on building our brand. Specific coffees may be the focus of special promotions, but for the most part we seek to create a brand identity that coffee lovers will easily equate with high quality. We expect that our promotion will be primarily Internet based. We intend to create a buzz through social media and will use our page to market our brand and sell our coffees. Beyond this, we expect that we will utilize both guerilla marketing strategies and conventional print advertisements (in local food and entertainment periodicals) to announce our arrival. We will have a grand opening party in order to generate further buzz.
Financial Plan
Projected financial statements for the first year are found in Appendix A. The company expects revenues of $200,000 in the first year. This is expected to increase to $500,000 in the second years. Cost of goods sold is relatively low for coffee, even at fair trade prices. Our beans will cost more than conventional ones, but we are able to charge higher margins than are most coffee roasters because of our premium quality.
We believe that general expense will...
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