Thread subject: Homeroasters.org :: Bulk Buys... What's your take?
Posted by yantacaw on 10/26/2011 04:10
One issue is the third shipment. SM receives large shipments, then sells to the end user. (2 movements )
For me to receive a shipment from my broker in NY, then distribute out to end users represents 3 movements.
My guess would be that it would increase the cost by the amount of the second move.
For something rare or special, it would be worthwhile.
SM gets their beans through a broker just like the rest of us. I have seen the receipts. It's the volume on shipping that they are saving. 1 bag or one pallet ships pretty much the same cost.
i expect that's true of beans that they are buying from distros but it seems to me that they are doing more and more exclusives that don't go through the sources that most other green bean retailers use (royal, cafe imports, zephyr). if i'm mistaken, please let me know. i've simply seen much, much more overlap among sellers like corral, burman, roastmasters, our coffee barn, etc. - with the largest difference being price and slight variation in what each may or may not stock.
SM's farmgate coffees are direct trade with the farmer. They still have to go through customs. I don't think SM wants or needs the headache of the logistics of operating their own import business. They do volume and get a discount from the importer. As I said, I have seen the receipts.
i understand. i was involved in manufacturing and import / export for many years and both worked with brokers and cleared my own goods. most brokers are on campus and securing a bond is rather easy. the bureaucratic process of filing and moving paperwork around is the harder part.