Hello fellow coffee botherers :-),
Happy Friday, I hope this email finds you well!
I just wanted to let you know about a few changes I'm making to The Coffeeworks.
As you'll know, I started The Coffeeworks as part of a push to being able to move to being full time with the blog and youtube channel, rather than continue working full time and just doing this eves and weekends.
I've done that now, I went full time at the end of May, and it's great :-), but when it comes to The Coffeeworks, I now need to put some attention to ensuring that this business not only generates sales, but that it's also making a profit.
So now It's been going for long enough to have some data to analyse, I've brought in an expert to look at what's going on - and I'm not making a profit with The Coffeeworks yet.
I'm not too upset about this, though. I understand that it takes time to build a business to the point that it's profitable, and when I launched The Coffeeworks I was much more focussed on building a loyal customer base and getting the business started than I was on making a profit.
I knew that with some of the things I was offering such as free delivery on 2 bags, 20% discount code to all coffeeblog readers etc., that I was potentially not going to make a profit in the early days, and that I might even lose some money, but I just decided I'd go with it initially to launch the business, and then look into things at a later date and see if anything needs tweaking.
So that's where I'm at now, and things do need tweaking a bit, unfortunately.
Slight price increase:
The first thing that has been pointed out is that I'm not quite making enough margin by the time all my costs are taken into account. This is only going to be a small change, around 10%, and only on the 250g bags, the pricing is OK on the 1Kg bags.
Coffeebotherers discount code:
I set this discount at 20% to show my fellow coffee botherers that I do very much value your support, and I want my readers and viewers to continue to get a discount, but I've been made to realise that 20% is unsustainable without more dramatic price increases.
Basically there's just not enough margin to offer such a discount on all orders once all costs of sale are taken into account.
So the Coffeebotherers discount code is here to stay, but it's being brought down to 10%. It will occasionally be increased for special occasions.
Delivery:
All orders were initially being sent out first class, and what I've come to realise is that actually a lot of the time, second class packages get there just as quickly as first class, there's only a fairly small percentage of packages sent second class that do take 2 days.
All orders have been going out second class for the past few months, and all appears to be well.
It's still free delivery if more than one bag is ordered, I'm not changing that, but there is going to be an optional upgrade for anyone who does want to pay to ensure next day delivery.
New Coffees:
More exciting news, is that we're in the process of developing the range of coffees on offer.
I started off with a handful of coffees to keep things simple when starting out, but it's now time to start developing the range.
Its early days in the process, but in the not too distant future you're going to see a much bigger range of coffees available, including some really interesting and different coffees to choose from.
Subscription:
The Coffeeworks wasn't setup as a subscription firm, so I'm not aiming to take it that way to try to compete with the likes of Pact Coffee & Blue Coffee Box etc., with discovery subscriptions.
But, we are working on a subscription which enables you to find your favourite coffees and then ensure you never run out of them, with an additional discount being given for subscribing over one time ordering.
Thanks again for your support, and I do hope these small changes don't put you off from continuing to order coffee from me, I do very much appreciate your business, but I'm sure you'll appreciate that I do need to make sure the business is profitable.
Thanks again,
Kev
coffeeblog.co.uk
cworks.co.uk
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