Share Article

321 cups of free coffee

That is what Panera is offering these days. 3 months of free coffee and then $8.99 per month there after. Seems to good to be true, right? First, let's consider the wholesale price of the commodity called coffee.
  • Right now, a pound of coffee costs about $1.34, including roasting and packaging.
  • One pound makes 48 cups
  • Average price of coffee: $3.52 (Average between quick serve, gas stations and gourmet coffee houses)
  • Taking into account waste, theft and brewing, that comes to $148 in revenue for every pound of coffee, for a Cost of Goods of 0.009%!
Someone would have to drink over 321 cups of coffee in a month to reach the $8.99 subscription price. And let's say that you get a free coffee a day. At 30 cups, you are still drinking less than $1.34 worth of coffee. This is a fantastic business model! Then add in the fact that you have to actually "order" your coffee every time. Noooo... you can't just walk in a grab a cup. You have to place your order in person, online or through the app. Of course, once you are in their app, you are now tempted by Danish's, pastries, smoothies and bacon. Que the upsell! At last count, Panera has about 875,000 monthly coffee subscribers equaling 7.8 million dollars a month in subscription revenue. 7.8 million in the bank, and they have not even sold anything yet. Now, what do you think about the subscription business model? That's what I thought. What other industries can use this model? Pretty much all of them.
  • Carpet Cleaner? Yep, I have a membership, The Always Clean Club.
  • Dentist? Sure. 12.99 a month for a new toothbrush and toothpaste.
  • Mosquito Spraying? yep
  • PT or Chiro? $xx.xx per month for special scheduling privilege's (Kinda like a Disney FastPass)
  • Shampoo retailer: Shampoo of the month on auto pay and auto delivery.
Look, the only way for you to be tremendously profitable is through repeat clients. But clients can be flighty and unpredictable. It is not their job to remember you, it is your job to remind them of your existence. You need, what author John Warrillow calls Automatic Customers. Do you have a subscription business? Do you have a membership? If so, I would like to hear about it for an upcoming Mouster Class. Just reply to this email. If not? Hop to it and create one. You are losing dollars faster than a speeding bullet.
Remember, you won't profit unless you implement, Vance "hopped up on my 9th coffee of the day" Morris

#customerservice #customerexperience #smallbusiness #clientexperience #entrepreneur #patientexperience

Like What You Have Learned So Far?

GET ACCESS TO MY WEEKLY TIPS

Author of the book

Systematic Magic,  7 Magic Keys to Disnify Any Business


You May also like

Books probably banned from school libraries

every one assured to offend someone. From the Far Eastern Shore of Maryland Hey ,  I am often asked what I read. It is a wide and varied list. Not just books, but magazines, blogs etc. My mailman must think I am nuts! As I get both The Epoch Times (conservative) and the New York

Read More

Why you need Millipede Marketing

And shouldn’t fry them with a magnifying glass From the Far Eastern Shore of Maryland Hey ,  If there’s one critter known for creepy crawlies, it’s the lowly millipede.  Contrary to what you might think, they a) don’t have a 1000 legs (750 tops) and b) they aren’t insanely poisonous or dangerous.  Nevertheless, they are

Read More

How to stop the Four Horsemen of DOOM in their tracks…

They could be riding roughshod over your biz From the Far Eastern Shore of Maryland Hey ,  Possibly one of the most well-known images from ancient prophecies is that of the “Four Horsemen of the Apocalypse” –  riding on horses of white, red, black and pale.  I’ll leave interpretation up to the experts, however, there’s

Read More