It’s fantastic to see statistics on trends in the coffee industry.
Here are three significant facts about coffee lovers.
First, taste and origin are now the most critical factors for coffee drinkers. The coffee-drinking public has changed dramatically over the past few years regarding attitudes and expectations toward coffee.
Coffee is no longer a boring commodity; people take it down every morning. It is an artifact that can be enjoyed on many levels.
The second measure is the amount of coffee consumed daily in the United States. Americans consume about 402 million cups of coffee daily; the country has 328,231,337 inhabitants. It is possible to automate the purchase of anything consumed at such a high frequency.
The third is how we buy things online. In the United States, 82% of consumers have made online purchases in the past year. You are way behind the curve if you don’t have a working e-commerce platform. Embracing e-commerce is a step forward that will help you meet customer expectations.
A coffee bag subscription ticks all the boxes. It offers coffee lovers a variety of high-quality coffee; it does this regularly and with minimal effort online. It’s perfect for 21st-century Americans. Learning how to start a subscription box company to provide coffee to your customers is essential.
Here are the basics of starting an online subscription coffee business. The basics will be covered, and they apply to everyone. Next, we’ll discuss considerations for existing businesses. The first is roasters and distributors. Next are retailers and then individuals.
What is a Coffee Subscription Box?
It sounds very similar to what it is. A customer registers online with a coffee roaster or merchant to receive coffee delivered each month or whenever they choose.
According to coffee statistics, a profitable trend is for coffee delivery subscriptions to cover a niche, a commercial coffee subscription, or a coffee bean subscription for hikers, campers, etc.
A subscription coffee business can be started by anyone, whether they are a retailer, roaster, distributor, or sole proprietor. Because of their established infrastructure and operations, existing coffee businesses can take advantage of this.
First, we’ll look at how your subscription works. Next, we’ll discuss packaging and technology infrastructure. These are essential for everyone, so it’s a great place to start.
We vote packaging as the second most crucial part of the coffee subscription plan, after types of coffee. Your custom subscription boxes will be your customers’ first impression of your business.
You can delight them with it, but you must choose the suitable packaging, dimensions, design, and printing method. Let’s take a look at each one.
Unboxing of Coffee Subscription Boxes
Take a look at the phenomenon known as unboxing videos. Unboxing videos are where someone opens a box and shares information about the product. YouTube has an entire industry dedicated to unboxing products. Every month, 100,000 people search YouTube for “unboxing.” It is not a myth.
However, if your coffee subscription box goes viral, it’s unrealistic to expect to end up unboxing videos. The packages’ ability to delight and surprise adult customers is evident in the unboxing videos.
You can find many similar boxes, but this is the one you will have. These are the four rules that will make the shipping box profitable.
We recommend corrugated mailer boxes. These boxes are strong and rigid and are the best choice for most e-commerce email subscriptions.
Make sure you use your brand colors and logo. Using mostly dark colors in a shipping box can make it look solemn and imposing.
However, lighter colors will give it a more playful and simple look. If your subscription theme is poverty and social responsibility, using a playful tone may not make sense.
Offset printing uses an automatic printing stamp to print. It is usually the most cost-effective and high-quality option for orders over 500 boxes.
Coffee Subscription Box’s Structure
The structure of the monthly coffee subscription box is one of the most critical aspects of the coffee subscription program. These are the essential parts.
Different subscriptions will offer different coffee philosophies. Some of these will be popular with customers. This is where your customers can be part of the philosophy and get excited about you and your products.
You can offer a single-origin subscription. Each bag is made from a growing region, emphasizing local community and geography. This is a sign that coffee drinkers value the terroir and the human stories behind the coffee.
A subscription can be offered for coffee blends. Each blend will include a tasting notes list. They will also be carefully crafted to achieve the perfect flavor profile.
This is a great way to get coffee drinkers excited about the flavor of the coffee. Those who enjoy the taste of coffee and think about it as a sommelier would over a glass of wine.
Since single-origin coffee and taste are two of the most critical factors in coffee consumption today, we use them as examples.
Subscription themes and coffee types are not limited to these two factors. Subscriptions can be focused on roast level, beans from local farmers, and other factors.
Coffee drinkers love coffee for many reasons. Some coffees will appeal to some more than others. Strategically choosing which coffee you subscribe to will give you the best chance of success.
Next, you need to decide what type of coffee you want. Do you grind the beans, sell them whole, or do both?
Coffee beans must be whole when roasted. Coffee roasters prefer to send their entire beans to coffee shops and retailers. This preserves both the beans and the roast. Fresh real bean cakes can be stored in a bag for up to a month if properly sealed.
Ground coffee is easier for regular coffee drinkers who don’t have a grinder. Ground coffee can be stored for about 1.5-2.5 weeks if adequately sealed.
For the more avid coffee lover, whole beans are better if you grind your beans at home or if shipping takes more than a few days.
Ground coffee is more delicious if it is shipped quickly and safely. Your customer base won’t be as concerned that the coffee isn’t 100% fresh.
The ideal customer experience allows customers to choose between both subscription types.
Frequencies of Coffee Subscription Boxes
It’s best to decide how often you want your shipments to go out. Subscriptions usually start with monthly coffee subscription plans.
As their business grows, they add bi-weekly or one-week options. Their transportation is more reliable, and their operations are more efficient.
I’ve heard it’s good to group renewals and shipments for each frequency together. One person who signs up on the 15th of the month will receive their coffee the following month, while another will receive it on the 20th. This simplifies the process and allows you to focus your energy on more growth-oriented tasks.
Coffee Bag Sizes
The coffee shipping industry has a heated debate over whether to use 12-ounce or 16-ounce bags. Do 16-ounce bags make sense when green coffee is sold by the pound or kilogram on the open market? Not necessarily.
Let’s first consider ounces as cups of coffee. An 8-ounce bag holds 42 cups of coffee, a 12-ounce bag holds 63, and a 16-ounce bag holds 83. Think about who you’re sending it to and when it’s best to send it.
Does it make sense to send 16-ounce bags of coffee to casual coffee drinkers? It is unlikely. A 16-ounce bag of whole beans might be the best option for your customers if they drink at least five cups of coffee daily.
Price is another important consideration. A pound of high-quality coffee can cost as little as $1.30. Coffee prices fluctuate between $1.30 and $4.20 per kilo.
Fairtrade coffee should be purchased for at least $3.40 per kilogram, and organic fair trade coffee at a minimum of $1.99 per kilogram.
Many of the best coffee roasters and subscriptions go far beyond these minimums to support growing communities—sometimes as low as $5 per kilo. Note that roasting can result in 21% shrinkage. It takes $1.31 of green coffee beans to make $1 of roasted coffee.
Prices can rise quickly due to the cost of establishing and maintaining a supply network, overheads such as marketing and roasting, and transportation costs. A 12-ounce cup of coffee is the same as a 16-ounce cup. A 12-ounce bag helps reduce sticker shock.
It is critical to ensure that your technology assets, both business-to-business and customer-facing, are clear and easy to use. DTC-based food subscription businesses are overgrowing because the barrier to entry is low.
First, you need a clear, concise, and easy-to-follow user flow to the coffee subscription section of your website. The second is an online marketplace or e-commerce platform that can be trusted. These are the main components from a technological point of view.
A website is already a requirement for retailers and suppliers. You don’t have a set of steps to introduce your customers to your subscription service and get them to sign up. These steps, taken together, are known as the user flow.
About the Author!
Ben Smith lives in Los Angeles with his family, a copywriter especially who writes blog posts for custom packaging and branding. Before he started writing, he got a graduate degree in business administration from a reputable university in Los Angeles. Then he did a writing diploma to work for RUSH CUSTOM BOXES, a packaging company based in Los Angeles. He is currently working for this company.