# What constitutes overpricing?



## Beemer (Jun 19, 2012)

I am contemplating buying from a UK artisan roaster. On viewing their website I was a little shocked that their roasted beans are £6.10 - £6.50 for 250gm. I have still to ask them but I'm assuming that it will be £24.40 - £26 for 1kg bags (if they do them).

As I am presently paying £15 for 1kg bags from a commercial roaster I'm wondering if you all feel that the above artisan prices are fair?


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## lookseehear (Jul 16, 2010)

It totally depends on the beans.

If you are buying a generic 'columbian', 'kenyan' etc from a commercial roaster then that roaster has a lot more flexibility in where they buy from and therefore can probably source them cheaper. You pay for provenance and quality so if a roaster is charging artisan prices I would expect them to be able to provide a lot more information about the region, the processing etc and basically explain why it is better than any generic coffee from the same region.


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## Spazbarista (Dec 6, 2011)

Very few speciality roasters have direct trade relationships...very few. Even then, selling something else that nobody else has does not mean it tastes better. In the end, only a blind tasting that removes the pernicious influence of marketing will help you decide what tastes good and whether it deserves a price premium.

Which beans are you looking at?


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## garydyke1 (Mar 9, 2011)

Not a perfect analogy but think about wine.

Vin de Table - generic & cheap

AOC - Strictly controlled guarentee with region

Grand Cru - Single vineyard, maybe a single parcel. you know producer and have full tracability etc

Would a Grand Cru be 'overpriced' compared to a generic blended table wine?


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## Spazbarista (Dec 6, 2011)

Problem is, Gary, the best reflection of that is the price charged at wholesale, not retail.

The analogy falls down pretty soon because the appellation system is really prenatal when it comes to coffee. I would point out one similarity, though. Jamaican Blue Mountain. Massive price premium because of the name regardless of the actual quality. Much like many of the big name French wines. When it comes to the most expensive Bordeaux wines, you have to consider who is buying it as well. For you and I, it might well be a once in a lifetime purchase and represent maybe an entire month's income. If you are earning those sums for half a mornings work the law of diminishing returns is less apparent.


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## radish (Nov 20, 2011)

I suppose you could argue that where two roasters buy the same green from an importer and one charges more then they are overpricing, but they may argue it's their business model and it's what they need to do to survive.


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## Spazbarista (Dec 6, 2011)

I always tend to go for the cheaper option when faced with identical products









Of course, the skill if the roaster has a hand to play, and I've been quite surprised at some of the bad roasts I've seen from some of the pricier big names.

My view tends to be if you find something you like then stick with it until you like it no more, for that day will come. I like change but I also realise that consistency is quite rare in the speciality market.

Bottom end you can find it (consistently bad)


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## garydyke1 (Mar 9, 2011)

Like wine , with coffee I dont want the same thing all the time , I rarely buy more than once (unless its particularly outstanding) - variety is the spice, its the best way to expand your palate and excite the tastebuds. The wine comparison isnt perfect but it does help to concieve why price versus quality might vary & the difference between commodity and specialty.

I think you have to be selective as a consumer. If you are paying £6.50 for 250g of a generic Costa Rica from the one importer that every roaster in the UK is knocking out for £4.75-5.75 for 250g then yes that is overpriced, however if the roaster has an element of exclusivity direct-trade and can tell you the location of the farm, the grower(s) and provide some sort of history/story around it with accurate tasting notes then 6.50 might represent good value.


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## Spazbarista (Dec 6, 2011)

Unless of course it doesn't actually taste any better than the generic Costa Rican.


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## garydyke1 (Mar 9, 2011)

Exactly, if that occurs then you vote with your wallet and spend elsewhere.


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## MikeHag (Mar 13, 2011)

radish said:


> I suppose you could argue that where two roasters buy the same green from an importer and one charges more then they are overpricing, but they may argue it's their business model and it's what they need to do to survive.


I'd have to disagree with that. The roaster adds their own value on top if the cost of greens. I'd pay more for well roasted beans than the same greens roasted by a less experienced/talented roaster.

Generally my acceptable price depends on how much value I place on the individual coffee, standalone, rather than compared with a typical market price. I've paid £12 for a 250g bag from Has Bean.


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## fatboyslim (Sep 29, 2011)

I'm happy to pay for the 'stories' that most of Has Bean coffees come with. Being able to offer direct trade coffees of such quality at such prices as Has Bean do is outstanding in my opinion.

Carry on!


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## MikeHag (Mar 13, 2011)

Tim Wendelboe's blog provides some great insights into the tangible improvements in coffee quality that can happen through a roaster's closeness to their producers. This, for me, helps explain why prices should sometimes be higher.

Conversely, the whole 'relationship coffee' thing is seriously at risk. So many roasters just use farmer stories as a marketing tool with no substance behind it.


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## radish (Nov 20, 2011)

MikeHag said:


> I'd have to disagree with that. The roaster adds their own value on top if the cost of greens. I'd pay more for well roasted beans than the same greens roasted by a less experienced/talented roaster.
> 
> Generally my acceptable price depends on how much value I place on the individual coffee, standalone, rather than compared with a typical market price. I've paid £12 for a 250g bag from Has Bean.


I wasn't meaning quality, more that some roasters may have a greater overheads: retail space, multiple roasting sites, more staff, etc.,


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## MikeHag (Mar 13, 2011)

Aah ok. In that scenario I'd expect the business to cover the costs of larger operations by selling higher volumes, not increasing prices.


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## radish (Nov 20, 2011)

MikeHag said:


> Aah ok. In that scenario I'd expect the business to cover the costs of larger operations by selling higher volumes, not increasing prices.


That would be the ideal, but again, its just a business decision - that's all I was trying to say! I'll shut up now ;-)


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## MikeHag (Mar 13, 2011)

Ha! Sorry


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## NikaayLestrange (Aug 2, 2012)

lookseehear said:


> It totally depends on the beans.
> 
> If you are buying a generic 'columbian', 'kenyan' etc.


Its true @Beemer. Its totally depends on the beans and also Which type of coffee bean is available in your region easily


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