Staying Focused

Thinking

I’ve been thinking a lot.  Thank goodness I suppose.  I’ve got a place I can go to for quiet, there to contemplate not only business, but everything going on around me, and in me. 

It is a good way to re-balance your efforts and I’ve been working on it for months.  Kaffe Magnum Opus is now down to 8 significant (in my opinion, which counts since I’m responsible for the business) items to work on soon.  Eight is a lot to work on, so I’ve got them sorted out – coffee perfection, sales model, and internet are the top three.  Ah perfection.  This is hard to achieve, but the value to your customer is the journey.  Keep reaching. 

I’m happy to tell you that we have a terrific coffee person who joined the company on November 1, 2010, coming to KMO from Denver, Colorado.  Jackson Kanampiu spent many years in Kenya running coffee farms, coffee beneficio’s, and he helped develop the Q guidelines for quality coffee.  It is just a pleasure to have him on board and Jackson is already making serious headway.  His first priority is to bring KMO coffee to perfection, while sourcing in a way that will bring down the cost, and the price KMO charges.

2010 was a challenge, as speculators devoured the coffee futures market and drove the “C” over $2 thus driving roasted coffee cost to historic levels,  near $4.00 per pound, before operating expenses.  Colombia did not help with historically high differentials which led all the quality producers to record differentials.  This is historic.  These folks are worse than, well, at least equal to, the bankers and other scoundrels who brought Wall St. and America to the brink, and many families over the brink.  In my opinion these people should be banned from trading.

No bother.  For this is the real world, one in which you must survive no matter the challenge.  Sink or swim.  Stay the course and stay focused.  Your customers benefit, you benefit and your families benefit when you ‘survive’ the tough times.  I hate to use this term for it is outdated, but you must ‘roll with the punches’. 

So see if you can find a nice relaxing place to think.  I’ve had places in my car overlooking a tidal river, a dock on the Hudson River, and now a place in the woods in my back yard.  Today, in the cold, it was invigorating.  And the dogs (we have two) were just as happy to see me, no matter the temperature.  And of course, Cathy, my wife, is my biggest supporter, the most supportive person in my life.  Everything works for her.  So I do too. 

And for you – KMO customers, staff and suppliers.  And the kids and grand-kids.  Both my daughter, Jennifer, and my son, Paul, are successful in their choosen field and both have happy, loving, and supportive families.

Happy Thanksgiving and Merry Christmas and Happy Chanukkah, and, Happy Holidays.  I turned 65 on November 30, 2010, yesterday, and I can assure you that the more birthdays you have the happier they become.   Thanks for all the good wishes.

Staying the Course

Lance Stays The Course Despite Two Crashes

Sticking with your plan can sometimes bring surprises out of the blue.  Some are helpful, some cause problems.

Who would expect to see Lance Armstrong on the ground, twice, both crashes caused by other riders. 

In our business the price of coffee spiked this summer.  Not exactly out of the blue, but a surprise none-the-less.  All of us who own and operate and lead our own business must have the courage to just put our heads down and keep going forward.  You and I must be able to absorb disappointments, even when physically hurt, and keep going.  We are the energy that keeps the business healthy.

The news is reporting that Lance tweeted his intention to continue in the race and help his team-mates.  Good for him.  While winning is out of the question this year, he could still win some stages. 

So let us leaders learn the easy way.  Watch another person handle adversity and thrive.

May your summer be happy, and your Gazpacho cold.

Bob

Coffee Prices on the Rise – Your Business Must Keep Pace

The coffee C has increased substantially this year.  It is due to the rising C contract – the base price for most coffees, and, it is also due to the rapid rise in ‘differentials’ – the component of coffee prices that represent the quality of the coffee. 

To keep it short and to the point.  Managing your business in times like these is not easy but you must keep pace with price increases.  I was born in 1945 and so have experience with several periods of rapid inflation.  You may not remember or know, but the prime rate was over 20% in the seventies.  Nixon, Ford and Carter were Presidents.  Ford wore buttons with the initials WIP - Whip Inflation Now.  Nixon slapped price controls on the American Economy.   The inflation was caused by the huge increase in Government spending for The Great Society and other stuff, and the Vietnam War.

Today we have the Iraq and Afghanistan Wars and Government gone wild.  This is not a political statement for either Democrats or Republicans.  Both share in the economic carnage caused by incredible increases in the debt load.  Bush increased it by 3 Trillion and more and Obama at least that much, some inherited, but none-the-less, on his watch.

My concern is that interest rates are as low as they can go with nowhere to go but …. up.  Inflation may lead the way, or it may follow rates up, but I think we are in for many increases in prices.

So keep watch and keep moving your own price.  You have to maintain margins.

Bob Johnson