USPS Price Increase Announced - and Other News.  July 4th is a Shipping Holiday

A quick heads up - no sooner than we finished our monthly meeting discussing expected increase of COGS the 2nd half of 2024, we are seeing it.  USPS announced (June 27th) that:

Effective July 1, 2024

  • Ground Advantage for packages under 1 pound (ounce-based) will see a small increase, averaging 0.2% but some rates could go up by as much as 33 cents.
  • Ground Advantage for packages over 1 pound will have a 2% price hike, with individual rates potentially increasing up to $2.11.
  • Ground Advantage Cubic pricing will go up by an average of 3%, with some rates rising by as much as $1.67.
  • Priority Mail will see a 5% average increase, with some rates going up to $3.10 more.
  • Priority Mail Flats will have a 4% average bump, with individual rates potentially increasing up to $1.18.
  • The biggest increase is for Priority Mail Cubic, with a 10% average rise and some rates going up to $2.97 more

 

Bear in mind that this will not change our all in COGS for Q3, those in your competitive set are going to have to increase their pricing by around $0.17 and added to the increase in coffee production prices - + $1.04 those in your competitive set will have to increase prices by $1.21 to maintain their margins.  Be sure you are carefully monitoring your competition and follow them up.  Even though your COGS won't change until Q4, you don't need to wait and it is a good idea to match your pricing to the market.  

There has been no indication yet what the holiday surge price increase will be so we can't be sure what the total shipping cost impact will be for Q4.

Top Selling Coffee This Week:

6 Bean

Colombia

Peru

Cowboy

Cold Brew

African Espresso

Blonde/Sweet Espresso

Whiskey Barrel

French Vanilla

Fulfillment times continue to be 1-3 business days with the average order received to shipment time of 1.2 business days with 96% of orders shipping in under 2 business days.  Orders >2 days are the result of incorrectly set up stores and missing labels.

Summer sales are strong and it is a great time to be sharing COLD brew recipes and recommendations that work best for your niche.

July's ZOOM training is on July 11th @ 2:30 Pacific.  The normal cycle calls for Selling at Events and Farmers Markets and there will be a bonus "using the bulk program to increase net margins".

There will be no Weekly Q&A/New Partner ZOOM on July 4th as we are closed to allow our employees to celebrate with their families.

July 4th is a shipping holiday so expect shipping times to reflect this.

 

Have a great week and don't hesitate to reach out via email if you have any questions or need help.  

 

 

A quick heads up - no sooner than we finished our monthly meeting discussing expected increase of COGS the 2nd half of 2024, we are seeing it.  USPS announced (June 27th) that:

Effective July 1, 2024

  • Ground Advantage for packages under 1 pound (ounce-based) will see a small increase, averaging 0.2% but some rates could go up by as much as 33 cents.
  • Ground Advantage for packages over 1 pound will have a 2% price hike, with individual rates potentially increasing up to $2.11.
  • Ground Advantage Cubic pricing will go up by an average of 3%, with some rates rising by as much as $1.67.
  • Priority Mail will see a 5% average increase, with some rates going up to $3.10 more.
  • Priority Mail Flats will have a 4% average bump, with individual rates potentially increasing up to $1.18.
  • The biggest increase is for Priority Mail Cubic, with a 10% average rise and some rates going up to $2.97 more

 

Bear in mind that this will not change our all in COGS for Q3, those in your competitive set are going to have to increase their pricing by around $0.17 and added to the increase in coffee production prices - + $1.04 those in your competitive set will have to increase prices by $1.21 to maintain their margins.  Be sure you are carefully monitoring your competition and follow them up.  Even though your COGS won't change until Q4, you don't need to wait and it is a good idea to match your pricing to the market.  

There has been no indication yet what the holiday surge price increase will be so we can't be sure what the total shipping cost impact will be for Q4.

Top Selling Coffee This Week:

6 Bean

Colombia

Peru

Cowboy

Cold Brew

African Espresso

Blonde/Sweet Espresso

Whiskey Barrel

French Vanilla

Fulfillment times continue to be 1-3 business days with the average order received to shipment time of 1.2 business days with 96% of orders shipping in under 2 business days.  Orders >2 days are the result of incorrectly set up stores and missing labels.

Summer sales are strong and it is a great time to be sharing COLD brew recipes and recommendations that work best for your niche.

July's ZOOM training is on July 11th @ 2:30 Pacific.  The normal cycle calls for Selling at Events and Farmers Markets and there will be a bonus "using the bulk program to increase net margins".

There will be no Weekly Q&A/New Partner ZOOM on July 4th as we are closed to allow our employees to celebrate with their families.

July 4th is a shipping holiday so expect shipping times to reflect this.

 

Have a great week and don't hesitate to reach out via email if you have any questions or need help.  

 

 

By Bryan Rauch

Share: