Future Shows
2007 May 8-10 Orlando
2008 May 6-8 Las Vegas
 

CONTENTS:
FEATURE: Waking Up to Coffee
Good Rep
RETAILER FOCUS: The Extra Ingredient

STATS
HAVE FUN

Merchandising Tips:

Tara Cronbaugh, president Java House; six-store retail chain based in Ohio


• Don’t forget about add-on coffee products: commuter mugs are the hottest coffee-related sellers for Java House says Cronbaugh. She keeps the product fresh by adding new color schemes on a seasonal basis.

• When selling any sort of mug don’t forget to add your brand: Cronbaugh says she sticks a Java House logo on anything she can. “It’s branding and marketing."

• Resist temptation: don’t overbuy cute coffee products for the holidays: you’ll be stuck with excess inventory.

• Beware gift cards: Cronbaugh found that while gift cards sent holiday business soaring, most consumers redeemed them for coffee, not merchandise.

 
STATS


Coffee is getting green, and we mean in dollars as well as environmental sense. The Organic Trade Association says that organic coffee sales in the United States totaled around $89 million in 2005, up nearly 41 percent from the previous year. The leading producers of organic coffee include Mexico, Costa Rica, Guatemala, Nicaragua, and Peru, according to the Trade Association.



High-end coffee and espresso machines are the perfect example of how specialty stores support their customer base. Where else in retail do people make house calls? Doctors don’t even do that anymore.

So much a part of good retailing is to educate customers. And for our part, we at the Gourmet Housewares Show are happy to share our knowledge as well. Join us in Orlando in May for all the latest hot products as well as information that you are really going to be able to use in your stores. For a complete exhibitor list go to www. thegourmetshow.com. While you're there, check out our fabulous special events and seminars!

Susan Corwin
vp and show manager

 
 
 
     
 
FEATURE: Waking up to Coffee


Even though coffee take-out beverages command top dollar, and most consumers drink those prices down without blinking, it is still a challenge for retailers to convince those same shoppers to buy a high-end coffee or espresso maker for their homes.

Someone who is willing to pay a daily $5 for a ridiculously named coffee drink may not realize that for the annual cost of that habit, they could have a top-end machine, said Art Nading, president of The Extra Ingredient, in Greenboro, North Carolina.

Nading says when he learns of a customer’s serious take-out coffee habit it helps him make the sale. “I point out how much they are spending at coffee shops over the year,” he says.

Coffee is also playing a larger part in how Americans entertain. According to Mary Rodgers, Director of Marketing Communications for Cuisinart, consumers want coffee and espresso makers to be stylish and convenient, and to make enough coffee for a crowd. "Our market research reveals that consumers are looking for a multifaceted coffee maker with increased capacity," says Rodgers.

Maryann Samsa, housewares buyer for Portland, Oregon’s Kitchen Kaboodle says that the more convenient super automatic coffee and espresso machines often win over customers who have been frustrated by basic pump espresso machines. “The super automated ones take the guesswork out of making espresso which consumers find less frustrating,” she says.

However the trick to selling the high-end machines is constant training of store staff, Samsa says, noting that that is prep work not just for a sale: most customers call the retailer for support once they get the machines home as well, and like many retailers of these high-end machines, her staff will make house calls. That’s the sort of service manufacturers as well as customers, appreciate. ”Some of these retailers go above and beyond in terms of service and when they do that they really shine in term of sales,” said David Shull, national sales manager for Capresso, which stocks many models of high-end machines.

 
 
Good Rep :

Your customer has purchased a $3,500 automatic espresso machine, but now that it is home he is afraid to turn it on. He’s called for help. What do you do?

Many retailers who sell super automated machines actually will go out to a customer’s home to walk them through any problems, says Debbi Wise, a California sales rep for Capresso. Sometimes, she says, that means going to their house and calling the 800-support number with them, and holding their hand as they walk through the procedures. To that end, Capresso vice president of sales, David Shull, says they’ve structured the Capresso support team to work more evening hours so that consumers can actually be home with their machines when they call for help.

 
 
 
RETAILER FOCUS: The Extra Ingredient

Art Nading, The Extra Ingredient, Greensboro, North Carolina; one store; store size: 3,500 square feet

Gourmet 365: You do a brisk business in the highest-end coffee and espresso machines. In fact you prefer those machines to cheaper models. Why?
AN: I would have to sell a bunch of coffee makers to meet the profit margin of one higher-end espresso machine. In the end it comes down to a numbers game.

Gourmet 365: What prices are we talking about here?
AN: They start at $1,000 and top off at $3,200. I love selling products that require knowledge and salesmanship because I know the big-box stores can’t touch them.

Gourmet 365: At this kind of price level what sort of support are you looking for from vendors?
AN: I need to have people at the manufacturer’s home base that I can call to help me out: that really makes a difference. I need that kind of help to give the high-end service I need to stand out in my marketplace. I also need a good manufacturer’s rep; I need people to answer my calls; I need the whole thing. They know I'm hustling to sell the machines and that we do sell a lot of them.

Gourmet 365: How do you merchandise the higher-end machines?:
AN: I keep at least four or five plugged in and ready to go at all times. I’m drinking espresso as I speak to you. And I use these machines at home. From my viewpoint, you’ve got to be a part of the lifestyle to sell the machine: it makes it more convincing for the buyer.

Gourmet 365: So how far does your service go?
AN: I sold a high-end machine to a retired doctor. A year later he had a small problem and called me, rather than the 800-number. I went to his house and intervened with the help line and helped him get the problem fixed. Now he’s happy. The upshot of that was the word spread around this area that I’m not going to send you to an 800-number, and say “Too bad.”

 
 

Have Fun:

Like all U.S. cities these days, Orlando has its share of both local and national coffee chains. Here are a few places to check out for both the caffeine and the stores, which are well worth visiting: there’s a mix of everything from fine film to erupting volcanos as merchandising themes. Check websites for more detail.

Austin Coffee & Film
929 W Fairbanks Ave, Winter Park, FL 32789 • (407) 975-3364

Stardust Video & Coffee

1842 Winter Park Rd. Winter Park, FL 32789-5819

Bad Ass Coffee Co. (closest to Convention Center)
8554 International Drive • (407) 226-8673

Coffee House of Thornton Park (downtown Orlando)
712 E Washington St, Orlando, FL • (407) 426-8989

Evertea (downtown Orlando)
120 W Church St, Orlando, FL
(407) 420-2699

Java Lava Coffee Shop (downtown Orlando)
100 E Robinson St, Orlando, FL
(407) 770-1888

 

 
What issues do you care about? Let us know by giving me a call at 207-799-3473 or e-mailing me at thyra_porter@glmshows.com  
Thyra Porter, editor, Gourmet 365.
 
 
 
The Gourmet Housewares Show® is produced and managed by George Little Management, LLC. For more information on all our shows, visit www.glmshows.com. It is co-located with Global Home Textiles Show, produced and managed by GLM and The National Hardware Show, produced and managed by Reed Expositions.

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