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Tuesday, 28 May 2013

When Price is #1 Criteria ! (Who really pays ?)

A Purchaser is able to impose a price importance by choosing what is purchased based uniquely on the monetary cost.  Sellers quickly realize when a low selling price is required to make the sales.  Typically, "quality" is sacrificed to reduce the sellers cost while meeting a few important criteria such as appearance to a non critical eye.

Coffee beans do not visually change when way past their prime apart from having a little more surface oil.   That creates an opportunity for marketing spin that is analogous to a magic act.  The Purchaser may decide the price but the Seller decides everything else including the message that is crafted to give the Purchaser assurance that they received a premium product even when it is not.  In a magic show the spectator's attention is skillfully guided to the advantage of the magician so that the impossible is viewed as real.   The spectator does not suspend disbelief because they know that it is a performance.  Most spectators try to figure out how the magic was carried out.  For some reason low price marketing is not often subjected to the same analysis.

Economies of scale, low quality, and a magic presentation are fundamental to selling many products at low prices.  Foods with low or no nutritional value outsell fresh organic vegetables and are designed for the supply chain rather than the consumer.  The buying criteria are satisfied while other possible benefits are only implied.

Economy of scale can only be achieved with a wide network that can store and distribute a uniform product.  The supply chain optimized product, usually produced in one highly automated factory, to specifications that favour longevity or visual aspects .  The processing or transformation technology is optimized to fulfill the goals of the seller based on the buying criteria of the clients.  A great deal of research is undertaken to understand the buying decision and what common "markers" are used in reaching that decision.

The volume of imported roasted coffee is staggering.  This "Warehouse Coffee" does not reach the client while fresh but it does reach the end user while it is cheap.

My mantra is "Buy from a small batch roaster".   I prefer the freshest coffee over the exotic varietal that was roasted two or more weeks ago.

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