Posted on

Fire yourself!

Teas.com.au Q&A Session

Do you feel you should be able to sell more tea?

You believe in your products, but somehow you feel like you are now your own slave-driver more than a business owner. What gives?

Check out this video to find out 1 very important lesson all business owners must lear

I don’t know if you realized it but our relationship has been flourishing for the last 40 weeks or so. 

This is actually our 40th newsletter! 

Today, I am going to give you tips to take in and have a think about because when we talk to different customers we find that what is recurring is the question about moving forward with their tea business.

“Where this tea business is going? It seems to go on a little bit slower.”

I remember that someone once told me that running your own business is the best self-improvement class you could ever take and I totally agree with that.

For the 11 years that I have been doing this, certainly I have grown heaps.

I am looking at a lot of things differently these days and I am really grateful that there are a lot of people that I am now in touch with who are really helping me in taking business to the next level.

Sometimes it is not just about getting more profit but it could be just you are enjoying it more.

I used to do a lot of more IT stuff and now I am not and I find myself less grumpy, less tired.

When we started the business we all want to try to keep the cost down and wear a lot of hats.

We ended up doing something that took us 10 hours when someone could have done it for 10 minutes and you just have to pay that person.

If you think about yourself and your business is successful, you want to pay yourself a certain amount of money and if you look things in that perspective and say, “Okay, my hourly rate should be X and you multiply that to 10 because it took me 10 hours to finish the job”.

That amount of money could do far more is you hire someone who is an expert and can finish the task in 10 minutes.

We often come to this and say, “Am I grabbing way too much for the sake of cost saving?” These are one of the many road blocks in the success of your business.

We cannot do everything ourselves not only because we do not have the time but also we are all wired differently.

Like for me, I am more in a creative aspect and if you are going to give me the task of putting together a bookshelf, that would be totally hopeless. 

We need to start accepting and be at peace at those things that we are good at and we are not good at.

You need to start thinking and say, “Okay, who I can get to help me with my business so it will flourish and grow so I will not stumble along the way”

Realizing these is quite important.

So start building up your network and if there is anything, like take away some tea packing job for you, we have got resources to help you with that.

If you want to come up with your own tea blend but you’re not the creative sort then we can talk about what you are interested in putting together, whether its detoxing tea, relaxing tea, or just a nice iced tea, and we can go through different options and find the best thing that is suitable for your business.
We will figure it out together and you can continue to sell tea and sell it profitably.

Hope I was able to inspire you and if you have any questions, feel free to send us an email via sales@teas.com.au or use our contact us from at Teas.com.au.

If you like this video hit “LIKE” or leave a comment.

Posted on

How to Price my Tea

How to price my tea

Teas.com.au Q&A Session

Selling tea?

Pricing your product correctly is essential to your tea business survival.

Whether you sell tea online, market stalls, beauty salons, tea shops or cafes, pricing your tea using the tips in this video will help to getting a step closer to selling tea profitably, in your style.

In the above video: This week we are going to talk about price.

We would like to thank Mary Anne for shooting over this price question.

This is actually quite a bit of a sensitive topic and we want to be more factual about it.

At the end of the day, if the price is not right, it’s not going to sell.

We are not saying that you have got to discount it; in fact we rarely do discounting ourselves.

What I learned about business when I was just starting is when you start discounting, there is nowhere for you to go but downward spiral.

One of the effects of discounting is that it actually trains your customers to wait for your discounts rather than buying from you on your regular price.

Therefore, discounting is really not a good idea.

So the question now is, how will you price your tea?

If you go to distributor, you will find that many of them provide RRP (Recommended Retail Price) but we do not do that.

Generally speaking, the main factor here is not only the quality of the product but how it is marketed, how it is being perceived.

For example, if you have a box of tea and you market it to a beauty salon and to a weekend market, you will find that, that same product can be marketed and priced differently.

That is why you really need to think about your target market.

Imagine your ideal customer – someone who wants buys tea from you regularly, and you love doing business with them, and you can sell a box of tea for $10.00.

When you take a look at your competitor and most of them are selling it for $10.00, then you will need to sell for the same amount unless you have a very compelling reason to sell it to $15 or above.

Or, if your competitor is selling it for $20 and you will sell it for only $10.00, then your target customers might be suspicious and might think, “ I wonder what’s in this thing, why is it so cheap”.

What I am trying to say, price is not always, “the lower the better”.

You need to take a look into it from a broad angle or perspective.

If you are new to the tea business then then price should be part of your product creation process / research and you need to position it right in relation to your market.

Too high, or too low, is going to hurt your business.

So, how much does it really cost?

This part of the conversation is very important, like I asked Mary Anne, “So how much are you willing to spend?”

“Not sure,” she replied sheepishly.

There is absolutely no shame in that, what is important is the next step – how to move on to the next phase which involved looking at the competitive products and how much are you willing to spend.

Let’s now go back to that box of tea for $10, and let’s imagine that you want a 100% margin on that because you are going to have some bits and pieces that you will have to pay.

Imagine that you buy the tea from us for $5, you need to ask yourself, “Is that going to get you the kind of product that you want because if your plan has got a lot of expensive ingredients, or if you are looking to have the $5 piece in 200g or larger, you are not going to hit the mark and chances are the price will not be right.

Or you may say, the first order Salina quoted me for $6 and I know that if I up the quantity to the next price tier, it is going to drop to 5.50 and I am happy with that.

Because I am testing out, for the first order I will not hang on to a lot of goods but I am paying a little bit more.

That is not a bad thing because at the end of the day, you will need something to get out there. Get your phase 1 product out there, test the market, get the feel for what people are after, and then finetune it as you go along.

So, there you have it, a little bit about product creation in connection to pricing.

Remember, don’t be shy in talking about money because you are selling tea and the involvement of money is inevitable.

You are not a slimy sales person but you are not also doing it for charity but for your business, something that you are passionate about.

You need to price it right in order to sustain your business, it is not about just selling and selling, and realize that you don’t actually have enough money left to enjoy your life.

So, have a really good think about your pricing strategy and if you have any questions or help with this, feel free to drop us a line via sales@teas.com.au, or us the contact us form on our website Teas.com.au.

If you like this video, hit “LIKE” and comment as well. 🙂

Bonus – found this article as I was preparing this video blog – enjoy – http://www.entrepreneur.com/encyclopedia/pricing-a-product

Posted on

What are the suitable tea range for Cafe and Deli?

Teas.com.au Q&A Session

Cafes and Delis are two different markets.

These two also needs different tea selection which will fit both to their budgets and their target customers.

Are you a Cafe owner or a Deli owner? Still having trouble figuring out which teas are you going for?

Let us help you with that!

Well its question and answer time again.

This week we got a question from Chris.

Chris is saying that he wants to start up a business selling tea and he wants to sell to café’s as well as selling it to boutique-deli shops type of things and he’s wondering how he can actually create a tea range suitable for both markets.

Now this is an interesting question, thank you Chris for that. I think it’s interesting in the sense that they seem quite similar because at the end of the day we are talking about selling tea.

It’s not like selling tea to one and selling tea-spoons to another one or something like that.

The fact is that they are actually quite different markets.

And the reason I say this is because when you are on selling tea to café’s and by no means I’m trying to offend anyone but typically café’s is not very focused on the quality of tea and so what they typically more focused on is how much it is and how easy it is for them to get the tea.

So because of that often what we are competing with is other coffee suppliers and in that way it is really quite unfortunate in the sense that coffee suppliers again don’t care about quality.

It’s a lot about the price and they’re trying to give their customers a one-stop shop solution so they will throw up pretty cheap tea, and for us, because we are actually boutique hand blend type of teas, it is actually really hard to compete in that market.

Now I’m not saying all café customers are like that in fact there are some that insist on leaf tea, insists on good leaf tea so those are the ones you need to hone in to but what you need to be aware of is not all café customers are like that, the majorities are not in fact.

So when you set your own expectation don’t think that “aw shocks” you know I have approached ten café’s and I only get a couple of bites or something like that.

You really need to actually even before you select those ten ask yourself, are they just random ten or are they actually people who you have looked at.

Maybe you have gone to their café or checked out their website, whatever it might be you get some background information that you know they care for quality.

You know if they care for quality coffee as well as care for quality foods it’s not just you know, any generic café bistro type food then you might have a better chance to actually getting your tea in it without you sacrificing too much of profit .

And that’s the other part of it, how do you actually get your profit in and also quick delivery so that could be a really a different conversation we’re not going to dig deep into this.

Going back to the other part of Chris question is that he wants to sell it more of boutique type delis shop that sort of thing.

So what that means is that their shops typically they don’t want to pack their tea. They want it to be packaged up typically to a box nicely ready for on sale.

So that market is actually really different because they just really want something pop on their shelf ready to sell versus café is they don’t care about the packaging, don’t give me all these tiny little boxes of tea.

Just give me a bit good sack of it so I can just replenish easily.

They are really quite different markets. If you imagine if you need a pair of jeans, you could go to old targets or you could go to Ralph Lauren or wherever that is quite different in terms of price range and brand and quality and all that.

So don’t try to make yourself kind of a one-size fits all but instead look at, “okay who am I going to serve?”

And if you decide that it’s the café market, focus on that, just get good at that first.

If you want to focus on your boutique people, some people who actually really wanting retail packs, that’s a different market focus on, get good at it, then you can get on to your café customers and what not .

So I hope this helps you.

Chris told us that this is something that is useful to him because these two are actually different things.

I hope this is also helpful to you and if you like this video, find it informational, please do like the video by hitting “LIKE” and if you have any comments, feel free to drop them in for us, either using the comment box, underneath the YouTube Video, or if you found us in our blog, Empiroteas.com.au, please draw us comments there, we love to get your information, your feedback or comments so we can actually do more videos that are helpful for you.

Don’t forget to send in your question and if your question is featured on our weekly Q&A videos, a tea gift pack is coming your way!

I’ll catch you next time.

Posted on

What Is Your Custom Tea Blend Process?

 

Teas.com.au Q&A Session

To compete in the growing tea market, you need a unique selling point.

Should you stock a wide range or just a few? What will make it easier to sell more tea?

How about private label tea?

In the above video: This week’s question is from Karen.

Karen decided to create her first ever tea business.

She has been talking to us about whether it is best to get a lot of different teas or just focus on a particular range.

She also wants her brand on these tea packs.

What we are going to go for private label tea.

She has picked up a couple range of tea from our existing range but she also wants to do some special ones with her personal touch to it.

So, she asked us, what is the custom tea pack process?

Thank you for the question Karen.

Let us share this process with everybody!

To start with, you will need a recipe with their corresponding percentage.

But if you don’t have, we can certainly help you work it out based on our knowledge and experience, especially on the tea aspect.

We also have an herbalist who can help us into working it out as well, to come up with a recipe just for your own use. Working with our herbalist will cost you $150.

Now going back to the custom blend process, so assuming that the recipe is all good and ready, we will start by blending a sample for you to taste.

Usually for the sample, you will get about 20g per tea.

If you need some tiny tweaks on the recipe, that wouldn’t be a problem, we will do it for free.

Once you are happy with the recipe, we will go ahead and quote you according to your own preference whether you want a 50g bag, 20g pouch, tins or whatever packaging you prefer.

Just a note though that we don’t typically quote before the recipe approval is done.

Simply because, just imagine that if I throw you all these recipes and quotes and they are all kind of like looking alike, it’s just going to be confusing.

So we prefer to just give you one final quote that is nice and relevant to exactly what you are going ahead with production.

Some people will say, “I want to know how much this is going to cost me while I am trying the tea”.

The answer is actually depends on how much market research you have done.
If you have looked at the similar products out there and if its $14 then you might say that, “I want the cost to be $7, just for the tea, because I still have to think about marketing and all the other bits that I have to pay for”.

The sooner you get this clear instruction to us, the easier for us to hit that mark, especially in the sample creation.

Just imagine if we still need to pluck out some expensive herbs, then we might not be able to hit that on time.

It is good to get that clarity ahead of time, how you can achieve this? Do some market research.

Now, once you are happy with the quotes then we will go ahead with production.

This custom tea blend sampling process is going to cost you $50 with those 20g samples and a couple of little tweaked samples.

Then, there is also the $150 tea recipe that we can create with you.

Again, we will need your clear instruction with that, whether you want it to be nice and tasty, or you want the digestive but you don’t want to use peppermint, whatever that might be, we need clarity on those things before we get started.

After you provide that, we can start working with our herbalist, she has an amazing 25-year experience in this field and many different modalities in terms of alternative healing.

So there you have it, we can definitely accommodate your custom blending need.

Thank you Karen for asking this question and because of that you will get a nice gift tea pack from us! J

How about you? Do you want a gift pack?

Go on… Ask a question! You can send it to sales@teas.com.au, or use the Contact Us form on our website Teas.com.au.

If you find this video useful, please hit “LIKE”, this will help us understand what is really useful to you.

Also, if you like our videos, please do subscribe to out Youtube channel to help us come up with a library of useful information for you!

Remember… it is not just about me going blah… blah… blah… It is more about what is useful for you because we are more about supporting you to get your tea business rocking.

It is no point to start a business that is going to drag you down and you feel chained and slave around till 2am packing tea.

That is not a better way to start your business and not the best way to live and enjoy your life.

If there is anything that we can help, pleas connect with us.

Send us an email and don’t forget to send us your question for our Q&A session and receive a tea gift pack once your question is featured in one of our videos.

Posted on

How To Select Your Tea Range

 

Teas.com.au Q&A Session

What teas are you most familiar of? What teas really captures you and made you fall in love?

Who are your customers?

Answer these questions and you will come up with a perfect tea range.

In the above video: This week’s question is from Diana.

Diana is looking at setting up a tea shop after she has gone to China and she just fell in love with tea but before that she already is a tea drinker.

She asks me what teas she should actually sell.

She needs help in terms of narrowing down her tea range.

She is also looking at private labelling which basically means that she really needs to be really specific as compare to having just a generic tea shop.

If you walk into a tea shop often, you think about a lot of tea packages and different varieties of tea.

You always wanted to go in for gold, like a lolly shop kind of concept.

Often, with Private Label, it will be a little bit more trimmed down and focus in terms of tea range.

You might be going for the particular tea property or a specific flavour.

You might even have a particular brand that you are trying to adhere it to.

So, if your brand is has the 1902’s kind of feel then you probably will look for something that gives you that yester-year kind of feel.

So, going back to the tea selection, what we ended up looking at what customer is she trying to serve and what teas she’ll be comfortable selling

When Diana went to China, she learned a lot about green tea and oolong and she has fallen in love with those teas.

So that would be her key.

For others, you might be someone who is drinking English Breakfast since you were young and you’re quite familiar with it.

So you probably will go for a more black tea focus when it comes to choosing your range.

The other thing that you need to consider, and Diana and I also spoke about this, is that what tea is going to be your unique selling point.

I mean, it is good to have English Breakfast and Chamomile in your range but if you are really trying to narrow down the range like you don’t want to sell like a huge tea range and you just wanted to select a particular range for a reason.

If you are aiming for a particular range then you need to skip those generic teas which are readily available in the supermarket.

This is really important for you to think about, if you have English Breakfast and they could pick it up from coles / woolies, why would they even come to you?

Why would they want to spend more?

There is an education involve for you to get them to help your customers answer that question. Why would that want to come and buy English Breakfast from you?

In the initial phase, those teas will be difficult to sell to a certain degree because your customers may not really understand why there is a need for them to buy from you.

If you are really trying to select your range and narrow it down, somewhere between 10-20 kinds of tea, you might not find it necessary to go for an English Breakfast.

What you could do is say, “ Okay, here’s your good ol’ generic English Breakfast but we can do better and take a step further”.

We can step it up and give you Assam.

But you need to explain that Assam is a better version of an English Breakfast tea in some ways.

Look into something specific and enticing than just sticking with what’s popular.

If you’re just going to go with what’s popular and expecting it to sell because everyone knows it then you’re not really committing to that product.

Remember that if you’re not committed, it will reflect to your customers and it will be harder for them to feel that your teas are something special and that they need to have it.

So, there you have it, a short clip of how to select your range.

To sum it up, you just need to remember 2 things:

1. Why you want to sell those teas?
2. What tea range you’re going to go for according to the kind of feel that you wanted to project to your customers.

Do you want to be one of those tea shops that have a very vast tea range or a tea specialist that has a smaller range?

Think about that and shout out to Diana!

It was great talking to you and watch out for you tea pack!

For you guys, if you have any questions don’t be shy and just throw it our way and we will be happy to answer them for you! 🙂

Again, if your question is chosen to be one the video, a gift tea pack will be coming your way!

Also, feel free to contact us via our contact us form at Teas.com.au.

For more tea selling tips and information visit Empiroteas.com.au.

If you like this video, hit “LIKE” and feel free to comment as well! 🙂