The way we calculate our pricing is based on a few factors. We can split these factors into two categories: those that depend on the specific coffee, and those that don't. Our final price is the result of a straightforward calculation that takes these factors into consideration, giving us a price for both retail and wholesale.
In other words, our price is based solely on our costs, rather than our opinion. As such, cost is not necessarily reflective of quality: we won't inflate the price of a coffee because we think it's great.
The primary driver for our prices is the cost of the green. That, in turn, can depend on many factors: airfreight is typically more expensive than sea freight, more labour intensive processing affects pricing, different origins, harvest conditions, species, varietals, etc.
A second coffee-specific driver is the losses incurred by the roasting process. Roasting inevitably means some watercontent is evaporated and some volatile organic compounds are released. As a result, 1kg of green coffee does not result in 1kg of roasted coffee. On top of that, we dial in the roast of our coffees which incurs some loss, and we keep samples for quality assurance of some number of roasting batches. This all add ups, but varies for different coffees.
Factoring in the lost weight gives us a conversion from "green cost" to "roasted cost".
Then we have fixed costs - roasting requires machinery and energy, packaging materials, and labour. We amortize these costs and boil it down to a "cost per kg" that we update every so often. Currently, that cost is set at €5,25/kg.
Finally, we apply fixed margins for our retail and wholesale sales: 65% and 40% respectively. These allow us to cover unforeseen costs, invest in delivering a better product, and of course, donate to beneficiaries.