The Coffee Producer Toolkit #5: Price

Support the show on Patreon to help us keep making new episodes. In this fifth episode, we give you a practical guide to pricing your coffee to ensure your farm is economically sustainable in the long term. We start by showing you how the “C” price is actually set, and why it is not what your coffee is worth. Next, we show you how to calculate your cost of production and the common challenges producers will face doing this for the first time. We then look at how high above your cost of production. We cover where to find what coffees like yours are really selling for: asking other producers, asking roasters for their spot price lists, V-Hub and the Specialty Coffee Transaction Guide. We also explain why spot prices are only a starting point, and how producers add a 15 to 20% premium by offering consistency, trust and a relationship. And we finish with negotiation. We explain why many roasters would pay more but have never been asked, and how cultural values of humility and harmony can hold you back. We show you a tool for communicating with buyers from different cultures, what to ask for when a buyer won't move on price, and how to charge for investments a buyer asks you to make. The Coffee Producer Toolkit is the podcast that helps you run a more profitable coffee farm. Hosted by coffee journalist James Harper (Filter Stories podcast) and fermentation specialist Lucia Solis (Making Coffee with Lucia Solis podcast), it's built for farmers who want to run their farm like the business it is. Over two years we interviewed 50+ producers and experts across 20 countries. Each episode takes one part of the business — agronomy, processing, fermentation, storage, quality, sales — and lays out what the best farms are doing. Related podcast episodes: Lucia:  #64: "What Kind of Coffee Lover am I? How Much am I Willing to Pay for a Cup of Coffee?" James:  Filter Stories: The Hard Business of Selling Beautiful Coffee Follow us through our newsletters and Social media: Lucia’s Newsletter James’s Newsletter Lucia Instagram James’ Filter Stories Instagram People mentioned in the episode: Karla Boza — Jacinta Y Su Cafe, San Benito, El Salvador Julia Ortega, Finca Los Pinos, Puebla Mexico Edilberto Tovar — Finca La Esmeralda, Huila, Colombia Melissa de Gasperín — Rancho San Felipe, Veracruz, Mexico Diego Robelo — Aquiares Estate, Turrialba, Costa Rica Cristian Reyes — Finca El Rodeo, Santander, Colombia César Marín — Chacra D'Dago, Peru  Gilberto Baraona — Los Pirineos, Usulutan, El Salvador Lalo Perez, Biofilia  ASOPEP, Planadas, Tolima, Colombia Piedras Azules cooperative, El Salvador Agnes Thieleke, InterAmerican Coffee Europe Resources:  Record keeping and profitability analysis V-Hub (formerly Cropster Hub) Coffee Yield Calculator Cost-of-production calculator Fairtrade Verified Living Income reference prices Specialty Coffee Transaction Guide Chad Trewick interview on Bellwether podcast Heifer / ASOPEP / Fairtrade Tolima living income study Book: The Culture Map by Erin Meyer Cover Art: Nick Hafner The Coffee Producer Toolkit is made possible by these leading coffee organisations: The Coffee Quest | BWT | Descamex | InterAmerican | Pinhalense | Novonesis | GrainPro Support the show Support the show