Reasons Coffee Costs So Much

As coffee lovers I am sure we have all noticed that the price of coffee seems to be constantly changing. You are probably wondering why it is so common for prices to be so inconsistent. Let’s explore the depth of these price instabilities by looking at the factors that affect coffee specifically. Then take a dive into the what Coffee Bean Corral does to keep you stress free when buying your premium beans.

Why does coffee cost so much?

There are many factors that push coffee prices higher or lead to fluctuations in the price of green coffee. Here are some things that impact the average prices of green coffee.

Higher Labor Costs

Higher labor costs contribute a great amount to the influx in coffee manufacturing prices. With a world that's always evolving to be more fair and more respectful to workers, committing to paying them well is highly important. Higher wages paid to the people who harvest the beans, paying the people who transport the beans, and many times paying the people who roast or brew the beans can lead to extreme price marks on your favorite cup.

Weather Impacting Yield

With people willing to harvest the coffee beans, we still can’t always rely on the weather to warrant a good result every season. The already few regions that have the right climate or weather patterns to grow coffee may not always yield the same amount. We can not always predict weather and we sure can not control it, so the average price of green coffee beans hinges on the amount of harvest. Weather is a very hard thing to rely on and coffee only works with pristine weather conditions. Having the wrong climate or an off season can cause a huge upward shift to the prices we pay for our everyday joys.

More Demand

Mentioning how few places grow coffee demonstrates why adapting to demand is another factor of pricing. When one region is more highly demanded, their resources will be spread thinner leading into increased price. If a particular place has a lower yield and can’t meet the demand from their consumers, the prices will rise in response. With little to no substitution through the distinction of each country’s coffee flavor, the prices are especially influenced by increasing or decreasing demand.

Fluctuation in Currency exchange rate

Fluctuation in currency exchange rate is a thing I’m sure you don’t think of much, but has a large impact on the price of your cup. Since many of our coffee growing countries are separate from where we are drinking from, it's time to consider the currency exchanges as highly impactful. Due to trades taking place the value of money in both countries matters, and in a market like coffee it is even more prominent. If the currency in one country strengthens in value, our money power decreases against it and we can not buy as much product for the same price. Meaning we may have to pay more when another country has a growing economy or our country has slowed at all. It’s a great thing for the country we trade with to be on the up and up, but sometimes that hurts our pockets without our knowledge. Watching the news might help inform you of trade impacts, but maybe before you didn’t fully understand that means your dollar buys less than it used to.

Inflation

Inflation is a pesky obscure part of our economy that makes our lives a bit harder every year. The same way that our dollar buys less elsewhere, each year we can buy a little less because our own prices expand. A small increase in inflation is a good sign, saying that our labor markets are doing well, people are optimistic about the future, and we are consuming things. Yet, sometimes inflation feels more noticeable than before because high inflation is not good for us consumers or the economy as a whole. Whether our inflation is increasing gradually or spiking, our prices will reflect the small surge every year.

Higher Shipping/Transportation Cost

Another cost factor to take into account when coffee is coming from another country is the price of transportation. Higher costs to ship or transport coffee is a disguised part of price increases within coffee everywhere. Your beans are subject to the volatility of the transportation market whether coming on a boat, plane, or delivery truck.

Ways to save.

After understanding why your coffee keeps fluctuating, it probably seems impossible to combat. We have just the tools to help your coffee stay close to the prices they are at. Coffee Bean Corral is a great resource to help keep your coffee within budget because they work diligently to keep prices as steady as possible.

Order in bulk/Wholesale

Having larger quantities allows you to order less often and split the fixed costs (labor, transportation, etc) more evenly. More for less is always the best option. Reducing the frequency of your orders can slim your costs by minimizing the packaging, shipping, processing, and other regular fees. Less shipments and more products makes the beans cost less per batch. Wholesale beans are better because the prices can be held lower for longer even when retail coffee fluctuates aggressively.

Watch for our sales

As mentioned, CBC is always looking out for you and finds a way to lower their prices whenever possible. Sales are a great way for you to win the coffee lottery. Instead of getting bummed out when prices get high, keep your eyes peeled for the finest deals during holidays, overstock, seasonal changing, or exceptional years of harvest. Coffee Bean Corral stays transparent about their pricing and works tirelessly to cut down costs, so you can pay less. Having sales benefits your great taste in coffee.

Know that we raise and lower costs

Even knowing that costs will fluctuate can help the high costs lose their sting. Understanding why prices change can help you understand or maybe even realize why your goods are priced a certain way. You can now recognize the uncertainty of your prices has a purpose. Just know the prices will adapt to the mix of factors and selling something of this nature can not always be controlled. CBC does their very best to keep prices stable within their company, but they too are impacted by price changes. Be understanding with the rise and fall of your coffee prices and learn to alleviate the pain of high prices with some explanation.

Conclusion

We are all trying to wrap our heads around the fast climbing prices of coffee, so we did some digging into what is impactful for this kind of agricultural good. Looking at the economic and environmental factors can help teach you the intuition behind the all too prominent price changes. Coffee Bean Corral is a perfect place to find the best coffee in your budget with the work they put in to maintaining their prices amongst excessive price changes.