Sunday, March 6, 2011

The Price of Doing Business

Ain't That Some Shit?
What we pay at Kaladi Coffee
(minus differential, shipping, and a few other charges...)

There's an odd perspective you need to keep as a business owner.  The vast majority of your countrymen here in the U.S. of A. think you're at the top of the heap: business ownership is one of the main "someday I will..." statements for many people.  And with good cause.  Owning your business, as far as I'm concerned, is truly the way to go.

But when supply prices follow the chart above, well, there ain't anyone or anything to absorb the blow except the calloused hide of the principals.  Like most small businesses, we run a pretty tight ship at Kaladi: we don't have huge reserves of cash, and can't really sell out of any particularly liquid positions.  So the current price fiasco has left us with two options...and we took both.  One, we raised the retail and wholesale prices we charge to partially offset higher COGS and inbound shipping charges (mostly fuel surcharges on trucking fees), and (now the ugly part), Mark and I have (with dark humor and puckered parts) accepted the fact that we're simply going to make significantly less money this year than we did last year. 

It's hot dogs for dinner tonight.  And wennie-water soup tomorrow.


I regret nothing about owning my own business (yet).  I'm glad that we're not leveraged, and that we don't have any long-term debt to pay down.  I'm glad that our bills are manageable.  I'm glad that we've paid our bills in the past and that we have a credit advantage over many other coffee buyers.  And while there may not be much gravy on my plate this year, I'm glad that there will at least be grits.

As Nina Simone so wisely sang: "it also be's that way sometimes".

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