Hi Meg. Start at somewhere between $9-$11 per 1 lb bag and keep it real with your customer about the fact this is a new project. It might help to mention that that price is based on payment on delivery via cash, card, or check. There's not enough markup there to afford net 30 collections. You don't have to get rich on every deal, you only have to have enough money coming in to cover your direct costs so you can continue to learn how to do this without subsidizing someone else's business. You've got a good eye and you're a smart cookie. Keep it real and keep swinging the bat. You are absolutely destined to hit more than a few home runs.

Pass on the contract for this one. Tell them what you're going to do and do it. Tell them what they need to do (like pay you) and expect them to do it. Expectancy is the best contract. -until you've got more money at risk and you need a clear exit strategy to mitigate risk when expectancy fails.

For right now, keep it casual and be pals. People do business with people they like and trust. Endeavor to be more likable (in your case potentially impossible) and more trust-able (probably ditto, but I'm admittedly a terrible judge of character).

In short, you're in the ring. Protect yourself at all times, but balance that with the idea that the vast majority of humans are good and kind and decent beings. Be of service, but don't be anyone's doormat. Be pure of heart and share your love of the thing with anyone that cares to listen, but don't be afraid to fire a customer when their entitlement erodes your joie de vivre.

These are the things I know to be true.

Steve

Hi Meg! Cool! If you wanted specific direction and you were sitting here, this is the list of questions I would ask you.

1. What is the wholesale situation: Is this a grocery store, coffee shop, multiple locations?

2. How many brands are you directly competing against in this spot?

3. Where are these other brands on the spectrum of value (at a base level I'm asking about price but also other things weight value, like package design, existing popularity with customers, brand strength, etc)? Basically, what are you up against?

Everyone has made great points here, so I'll only add one thing about your ability to pass on knowledge: That's a huge advantage that you may have over competitors! Don't sell yourself short as a new roasters. Let folks know that you can help them figure out the best parameters for brewing on their equipment and that you're willing to come do a quick training and tasting with their team to make sure they understand how best to showcase the coffee.

If they're going to advertise your brand (i.e. "Proudly Serving Blk City") check in on them once in a while. Stop by for a cup of coffee and take a look at the equipment to make sure things are clean. Don't think of it as secret shopping, it's in your best interest to make sure they're doing a nice job and they'll feel supported by seeing your face in their shop from time to time. If they're doing a killer job, your wholesale business may grow as a result, word gets around.

Congrats on the new opportunity!

This is the best ever! Thank you so much, everyone! I read this with a full heart and it lights a maximum fire under my butt to pursue this. Thank you so much for your support and guidance. 😍 Also so cool that before I read Steve's reply I did send out a price at $10.95 and that we could work on developing a blend for his espresso needs.

"In short, you're in the ring. Protect yourself at all times, but balance that with the idea that the vast majority of humans are good and kind and decent beings. Be of service, but don't be anyone's doormat. Be pure of heart and share your love of the thing with anyone that cares to listen, but don't be afraid to fire a customer when their entitlement erodes your joie de vivre."

l read this post, the responses, and chewed it over a bit to make sure 1) I even have something to contribute and 2) it's worth saying. I'll bounce off this particular bit of what Steve said. Be warned, I like to wrap any advice in anecdotes because I think context is important and you don't know me from Adam.

So our first two wholesale customers were about seven years ago. Both restaurants considered "fine dining" for the area with some legitimately good food. Both wanting espresso blends. Both needing help with equipment. Both in dire need of training if they wanted their coffee program to be on par with the rest of their menu instead of something just tacked on. Both felt like serious undertakings with a lot of promise for a company in its first two years of business.

The first one I got for Swift was prior to me actually being hired. I had built a bit of a reputation for fixing espresso machines for the cost of parts and this particular restaurant found an old 2-group Astoria lever machine and clanky Rossi RR45 grinder in their basement. I pulled the whole setup apart down to the last nut and bolt, scrubbing, descaling, refinishing, and replacing everything that needed it. It took two months all said and done. I sorted out water filtration and plumbing, got them set up with a wholesale account at Swift, sourced flavoring syrups and smallwares, helped develop a menu and a workflow, and trained their staff on operating and maintaining a bar, right down to explaining the role of whey protein in creating milk foam. I even ended up pulling some "freelance" night shifts to help get the coffee program off the ground, despite working full time elsewhere. However, there were deeper issues with the business than I could fix. It was a rough couple of months until one particularly difficult night when I realized my role there (detached as it was) was reflecting poorly on me and wherever I happened to be working at the time. I stopped coming in, not even to collect my last tiny paycheck (not my norm, but I was never officially hired and never "on the schedule"). I don't regret the decision, but it did shake my confidence for quite some time, both personally and professionally because I had so much invested. The restaurant changed directions pretty sharply not long after that, eventually turning into a weird late night bar with a questionable reputation. It folded about a year later.

The second wholesale client came not long after I started at Swift. They needed a simple repair on their espresso machine, a basic service for both it and their grinder, and some smallwares for the bar. Pretty straightforward and nothing I hadn't done before. Same thing: I did the repairs, trained the staff pretty extensively, and did my best to make sure they were stocked on coffee and the equipment was maintained. A shaky couple of months and a few staff transitions later and the orders stopped coming. We're still not sure if the last check came either but we got over that pretty quickly. That restaurant is still operating, but we have no relationship with them.

Since then, we've had wholesale clients come and go. Most of them are still around. We have great relationships with them. They order in a timely manner, pay when they get the invoice, are mindful of how they prepare our coffee, and are generally very encouraging. We still do training, source or fix equipment when they need it, give advice when they ask for it, and are always willing to do a little more than is expected. The only difference is now we can sort of smell when we're getting a raw deal and set our expectations and how far we're willing to go accordingly.

So I guess my suggestion to you would be to treat this first client as a learning experience with the hope that it lasts beyond that. Find out what you can do and are willing to do (you seem smart, enthusiastic, and eager which can only serve you well in the long run), communicate everything clearly (e.x. "I'm doing this at cost"), and set some boundaries for yourself and your business based on what you experience. Treat them well, but don't be afraid to bow out if their reputation is negatively affecting yours. Good folks who appreciate your work, treat you and your product with respect, and pay on time will come around. Remember that your product is what initially sells your business and how you treat people is how you maintain that business. Don't get too bogged down by everything else and don't let it shake you any more than is appropriate.

Edit: Criminy...I just realized it's been a month since this was active.