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Bulk Organic Coffee



You certainly do not need to buy bulk Organic Coffee for your home, but if you are running an organic café or some other organic coffee shop or restaurant, then you cannot help but buy bulk organic coffee. It is a general idea that buying something in bulk comes cheaper when compared to buying in retail and that is true for organic coffee too. However, that does not mean that you order things in tons just to save a few bucks on retail. You need to have some idea of material management and employ some brainpower to work things out correctly. How? Let’s find out.

The Mathematics of Buying Bulk Organic Coffee: When it comes to making profits from your organic café, you must consider saving those extra dollars you pay on buying organic coffee at retail prices. You can save by buying your organic coffee in bulk. This does not mean that you stack your storage space with tons of organic coffee just to let it age for years there and lose all its flavour and taste or get spoiled by fungus. You don’t want that! To order the right quantity of bulk Organic Coffee, you first need to work out your café’s weekly and monthly consumption of organic coffee and your prospects of growth over the next month. Keep in mind that coffee sales do not remain the same in all seasons, all times, and all places. It usually goes up in winters, cold places, higher altitudes, and festive seasons and down in summers and rainy seasons, hot and humid places, and notoriously boring months. So, plan your order for bulk organic coffee accordingly. Ordering too much at a time will cost you space, maintenance, preservation charges, and labour. Then, the coffee will lose its aroma and taste and may also catch some moisture or fungus. This will adversely affect the quality of coffee you serve and ultimately reduce your profits by cutting your sales. That means that you are ultimately at a loss by ordering bulk organic coffee. So, what quantity should you order?Coffee beans

Economic Order Quantity: Have you ever heard the abbreviation EOQ or Economic Order Quantity? It is mostly used by people who are involved in material management, particularly in the procurement of materials. This means the quantity, which when ordered in bulk, lets you have the maximum possible quantity shipped to you at the minimum shipping charges for that range (shipping charges vary for different ranges of shipped quantity). It also helps in making maximum utilization of the storage space available to you, costs you the minimum maintenance charges for that range of quantity, and comes up with the perfect amount according to consumption for the proposed period, while still leaving a little in stock until the next shipment arrives. You can also order a big quantity and schedule its delivery in small lots periodically, so that your coffee doesn’t age and instead you get fresh coffee delivered to you each time, without going into the hassle of finding a new vendor and placing a purchase order each time. There is a mathematical formula for Economic Order Quantity, given below.

EOQ = {2(Annual Usage in Units)*(Order cost)/(Annual Carrying Cost per Unit)}1/2 

Q* = {2C*D/H}1/2

Where,

Q = Order Quantity

Q * = Economic Order Quantity

D = Annual Usage in Units

P = Cost per Unit

C = Order Cost (Fixed Cost per Order)

H = Annual Carrying Cost per Unit (Cost of refrigeration, rent of storage space, cost of preservation etc.)

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Arriving at the result – Deduction of Formula: The above formula can be deduced as follows;

Total Cost = P*D + C*D/Q + H*Q/2,

Differentiating the whole equation and equating it to zero,

dT*C(Q)/dQ = d/dQ (P*D + C*D/Q + H*Q/2) = 0,

H/2 = C*D/Q2

Q2 =2C*D/H

Q* = {2C*D/H}1/2

Buy it Whole: When you want to bulk organic coffee, consider buying whole beans rather than ground coffee. The reasons are obvious. The whole coffee beans have a longer shelf life than ground coffee, and you can see the quality different for yourself (varietals, roast, size of the beans). The flavours and taste are retained longer in them as well and each time you grind them, brew, and serve to your customers, they will taste the freshness. There is one more advantage to buying whole beans. It is almost impossible to adulterate the whole beans with anything else, so you get what you pay for.

Buy Certified Organic Coffee: Whether it is bulk organic coffee or retail, always buy certified organic coffee. Only a certificate from a recognized agency can ensure that the coffee is genuinely organic. Do not settle for anything less than that.

Buying Options: When you want bulk organic coffee at the cheapest price, the best deal will be to buy it straight from the producers or farmers (if you are that big of a dealer and you know some producers whose coffee is certified). You can also get it from the wholesalers, but then they have their own commission. Consider buying bulk packages from big shops or organic coffee dealers if you do not want to travel far and wide in search of producers or wholesalers.

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Finally, there is the Internet. You can see a whole range of organic coffee there in different packs, different flavours, different roasts, different qualities, with different certifications, and different profitable offers. Some offer free shipping while some offer free quantities when you purchase in bulk. You can also choose the right company or producer on the Internet without moving from your place, from the comfort of your own home. This option is best for those people who do not live in a coffee-producing nation.

Finally: Buying bulk organic coffee, in other words, means that you are supporting a noble cause in a “bulk” way. You are indirectly ensuring good health of your customers and your environment in a bigger way that most other people in the world, so well done!

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