The Coffee Warehouse is a new business providing high-quality, full service distribution of coffee, specialty beverages and beverage-related supplies to coffee houses and espresso stands throughout the Spokane and Northern Idaho market.
Steve and Jennifer Smith are the main owners. They have combined over 20 years of experience in sales and distribution. We are seeking additional equity capital for our investment. In addition, we are seeking a bank line to finance inventory and receivables. We have firm commitments to distribute several high-quality new age beverage products, and have verbal commitments from independent retailers throughout the Spokane and Northern Idaho market to carry our product. Within 30-60 days after finalizing financial arrangements, our first products will be distributed.
The Coffee Warehouse has sales projections of approximately $2229,000 per year. These numbers will rise to approximately 2,558,000 in Year 2 then to around $2,936,000 for Year 3. Our net profit is estimated at $283,000 for the first year. It will increase to $406,000 by Year 3.
Our business’ distinctive characteristics will include a combination of sales and distribution experience, management experience, and high-quality innovative products and outstanding customer service. The unique thing that sets us apart is the fact that we are the only full service distributor serving the specialty beverage and coffee industries in the Spokane/Northern Idaho markets. In addition, The Coffee Warehouse has an exclusive contract to distribute a new, groundbreaking product that would enable us to gain immediate access to a majority of the potential customer base.
1.1 Objectives
- To establish and run a profitable coffee and new age beverage distributorship in Spokane/Northern Idaho. The first year will see three to five employees.
- To obtain a minimum of 100 regular customers in the Spokane/North Idaho market the first year of operation.
- In the first year, sales exceed $2,000,000
- Maintain an average gross profit margin of 25 percent
- To achieve a net profit of minimum $400,000 by year three.
1.2 Mission
The Coffee Warehouse intends to become a recognized distributor of specialty beverages and beverage-related supplies and services to coffee houses and espresso stands throughout Spokane and Northern Idaho.
The Coffee Warehouse plans to develop strong relationships with key customers so we will be viewed as indispensable partners, rather than just another supplier. We will work closely together with each customer to recommend the right product assortment for their retail store, appropriate stocking levels and pricing, display options, and promotional ideas to increase sales. Coffee Warehouse will collaborate with the manufacturers we represent to ensure that our customers receive the most innovative and interesting products. We don’t sell product. We also sell service.
1.3 Keys of Success
- Innovative quality products
- We offer personalized customer service, providing our customers with what and when they desire.
- Only full service distribution company in the Spokane/Northern Idaho market.
- Fully integrated programs that help customers increase sales via menu development, creative promotion, advertising, and custom-made marketing material.
- Exclusive distribution rights to ground-breaking products not currently available in our market.
- The combined experience of the principal owners bring upper office management skills, high levels of customer service, and over 20 years in distribution and sales management.
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