CoffeeMasterClass.com. Coffee Master Class. With Barrington & Sara McIntosh. Webinar 2 Pricing, Expiry Dates, Target Audience

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1 Coffee Master Class With Barrington & Sara McIntosh Webinar 2 Pricing, Expiry Dates, Target Audience [automated voice] 0:00:04 Nathan Bailey: Hey everybody, Nathan Bailey here again. And I'm gonna host and help answer questions tonight with Barrington. We're gonna get into a lot more nuts and bolts as to the marketing approach to starting a coffee business. So, it's been a couple weeks, there's a lot of people here eager to learn the next steps, including myself, so take it away my friend. 0:00:30 Barrington McIntosh: Alright. Alright welcome guys, welcome to the second webinar in the Coffee Master Class series. Today we're gonna be zoning in on pricing and your product expiration dates and how to handle those, and also the target audience, persons who you are looking to sell your product to. And we're gonna all talk about that, and we're gonna also jump into some housekeeping stuff, just... This will be recorded as usual, it's going to be on the Thank You page. We're also gonna have another private Zoomcast, or Spreecast where we're gonna be talking about questions that may be posed during the week in the group. As I mentioned, I'm usually in there in the early mornings, or in the afternoons, Mondays to Fridays, on the weekends I'm hardly there. But just getting to those questions in there, see the questions coming in, so what I'm doing is make sure to tailor the presentation to the questions. So, if you have your questions in there, I'll tailor the presentation specifically for your questions and to get you over that hurdle. 0:01:37 BM: Sometimes it may just be a little hurdle, something that you just need to get over to move forward with the coffee. But, guys, I can tell you as Nathan mentioned last week, this is something for the long run. It's not just a quick show, it's a long-term process. And what you're trying to do now is to find winners, look for and find winners. We had some homework for the group, everyone to go out and search for local roasters, I really wanted to get your blood pumping. I wanted you to contact people, see how that process works, and we're going to be talking more about that on the webinars and in the group. And also we're looking forward to the Coffee Fest, coming up on June... I think June 5th through 7th. So, anyone that can make the Coffee Fest, we're gonna be there, myself and Sara. I mentioned that I'll only be able to walk with maybe eight to 10 people, I think that's filled up, but Sara's gonna be there. I'm not sure who else will be coming out, but we will be able... At least, we're gonna be there for a couple days, so if I can do something to accommodate everybody, maybe one day I do a hour, two hour walk with some persons in the group, and then the next day I do another hour, hour and a half walk. 0:02:45 BM: But just to get you on the ground talking to these wholesalers, talking to these manufacturers, that's when you really get into the game, because you have to talk their language. And one or two of this accounts can set your business off and running to the races. So, I see people filing in here, we have 51 and counting. Just wanted to run through all the updates, again, our webinar is gonna be about 45 minutes to an hour. And then when we're done, have your questions ready. Nathan is gonna shoot those questions at me and I'm gonna answer your questions for around 15, 20 minutes. But other than that, keep your questions in the Facebook group, keep them coming in the Facebook group so everybody can benefit from the answers. And usually, like next week, there's gonna be another one hour session, it's gonna be a private Spreecast, or a Zoom. The Zoomcast is usually good for showing, when I want to show you something directly, if persons are not getting a particular answer, then I like to show it, show you how to do it. So, we're gonna have that next week [0:03:45] of the Facebook group. And you will see all those events, they are gonna be scheduled and they're gonna be there, so I love the energy in the group, I love the vibe. Coffee is just something I'm very, very passionate about and I love to share that with you guys. 0:04:01 BM: Now, last week the homework was to contact your local rosters. Hopefully you guys made some contacts, some initial contacts, now you should have questions. Maybe they're asking you what minimum order quantity you wanted, maybe they're asking you what prices are you looking for, so you should have those questions. You should be 04/15/15 Page 1 of 20

2 coming back to me now and saying, "Hey, Barrington, I have all of this, I've contacted local rosters, but what else do I do?" That as I said was done so you could get your blood pumping, get everything rolling, so I wanted to get you out there in the system. Now, the coffee lingo, as I said most persons who are wholesalers or retailers are gonna be asking you about the type of beans that you want, if you're interested in Arabica or Typica? If you want sizes, if you wanted the 16 oz. Beans, the 16 oz. Ground, 8 oz. Bean, 8 oz. Ground? They're gonna be asking questions like, do you want medium roast, light roast, or dark roast? So, you're going to have to know how to respond to those questions. And that's what we want to help you with. Those are some of the things that you're gonna learn on these webinars, in the group, and on the live question and answer session. 0:05:04 BM: So, I want you to hang in there guys, get your questions ready. Go... If you have a great question to ask, write it down or put it in the question box, Nathan will make sure that the question is submitted at the end. And we will answer them as best as we can with the time, and then we'll move back to the Facebook group; everything happens there. 0:05:23 BM: So [0:05:23] group, I noticed that there's some persons who may be on the live webinar here, but they're not in the Facebook group. Remember you can reach out to [0:05:32] msteamwebmaster@gmail.com, and Mary or George will get you sorted out and get you guys in the Facebook group. Because that's where all the activity happens, that's where we all are. 5th through 7th in Chicago, the Coffee Fest. And as I said, I'll be there for the walkthrough. 0:05:52 BM: Now, last webinar we focused on you getting to local coffee shops, local roasts [0:05:59] Search and just go into the local roasters and local coffee shops. So that got you rolling. Now we're gonna go... I started to mention this in the group, but we're gonna start looking for retail coffee. What's retail coffee? It's a coffee that's sold in-store, maybe your Walmart, your Walgreens, Target, Publix, Kroger, Costco, Sam's Club, BJ's, all these stores, they have local coffee that they have within the store. Something that you could just walk in and purchase, do your scans, make a purchase and then start testing. Because that's the first thing, you have to test it. Now what happens if you're not living in the US? You are in a very, very unique position. Why? Because you could have coffee that's local to your area. 0:06:50 BM: Local coffee to your... In the Caribbean, to South America, to Africa, to Indonesia. You could have local coffee that's local gourmet coffee that the world would want. But you have to bring it to the market. You are the ones that have to bring it to the market. So whatever your local stores are, you are not left out. So whatever local stores you have, we want you to go into those local stores, look for... You will know based on your country, even if you don't drink coffee, you will know based on your country that, "Hey! This particular brand is very popular." The other brands weren't popular. Then you do your research on Amazon. Look if it's already selling. If it's not selling, or even if it's selling, look at how you could do variations. 0:07:29 BM: Now we are gonna talk about variations today and that's gonna be a very, very important topic. So guys, I want you to listen in on the variation. Now we are gonna actually walk you through step by step variation with the key words and the listing, and that's a critical part of this whole selling coffee process. You have to have a good listing. And also pricing is very, very important because remember you have to figure out, "What's my target audience?" "Am I targeting customers who are on a budget and they want to buy just $15 coffee?" "Am I targeting the higher end where they're... They don't care, they will spend $60 a lb on coffee because that's the coffee that they want." 0:08:10 BM: And it might sound high to you, some of you guys are like, "$50 a lb for coffee? Who's gonna pay $50?" They're out there and they buy on Amazon every single day, that's what you need to know. So guys, again, we're gonna be looking at buying retail coffee. One thing that I want you to do, if you can do it right now while you are on here, there's some apps that are for particular stores like the Publix has an app, Target, lot of this stores have apps. Now what you can do is download their app. What they do in the app is, they give you the weekly specials [0:08:50] special this week, they let you know probably the week before. Walgreens has a good app and they'll tell you exactly what... 0:08:58 BM: So for me, I download the app, and you have a whole ton of other items that are gonna be on special, they're gonna be for sale. But guess what, I only zone in on the coffee. What coffee is gonna be on special next week? What teas are gonna be on special next week? That is my total focus. If you are not from inside the US, you can still benefit from this. You can go online and you could go to your Walmart or your Target.com or your Walgreens.com and you can purchase online, send to a prep service in the US and have it sent out. A big question is gonna be so how about expiration days, Barrington? How are we gonna know buying online? How are we gonna know about expiration dates? We are gonna talk about that moving forward. 04/15/15 Page 2 of 20

3 0:09:42 BM: Now a lot of persons I've heard in the group, it's a big question, "pricing." Pricing, pricing, pricing. Barrington, how much do we buy the coffee for? What are we gonna sell the coffee for to really be in the zone, to be getting good returns?" Our buy price if we're doing this local retail arm like going to these stores that I mentioned in the previous slides, is gonna be from about $3-$9 based on what kind of coffee we're buying, if it's bean or ground, how popular the coffee is, that's gonna be or average buy cost. I mean, I'm just... This is off of experience. We're just talking off of what we do. So our buy price is gonna be from about $3 to about $9. 0:10:24 BM: So if your selling price now, which is key... This is very critical. Your selling price is gonna be three times or more your buy cost. And we usually start at about 14.99; that's what we do. We like to go on the... Start at $14... So if I buy for three I might be looking to sell it for or higher. If I buy at $3, is gonna be like my lowest price for it. I'm not even gonna be bothered is gonna be my lowest... Because I'm looking to... Because we have to think about how Amazon's gonna take fees out of here, you got inbound shipping cost, you have all these different varieties. So we are always looking to start at about and we're going up. From there we are going north of that price. We are always trying to get the higher price. First point's on an item that, okay it's That's what it is. That's what everybody is selling it for. We're gonna do multi-packs, we're gonna create variations, we're gonna do... Yeah, multipacks and variations. That's what we're gonna do to get a higher ASP, average selling price. 0:11:30 BM: Now profit margins. What kind of profit can we look at Barrington? If we are buying the coffee between that price, what kind of profit can we look at? Now, we will go for as low as $3 to $4 profit margin. If we are selling a lot, we will go [0:11:48] as was mentioned. This is coffee... Selling is more of a long-term event. Not just, "Hey, it's like you buy a shoe, and you go out there, and a person's coming in and saying, "Okay, I'm gonna buy a shoe from this vendor. I'm never gonna buy anything from him again for the next year." It's the total opposite with coffee. Once your customers love the coffee, they're gonna buy it over and over and over. That is why coffee is noted as one of the best replays [0:12:15] that you can sell because of the potential for repeat buyers. Repeat buyers; over and over and over. 0:12:24 BM: For coffee that's priced low, the singles, we always go to multi-pack. So if we're having a coffee that's priced at $14.99 for the lb were gonna think how can we multi-pack this? How can we put it in a two-pack? How can we put it in a three-pack? So we get a higher average selling price because we're selling now multi-packs. And we're gonna show you how to do that on today's webinar. 0:12:49 BM: When scanning, look for multi-pack listings. So you may scan a product, and it's very popular. You love it. You're making a... It looks like you're gonna make a profit, and you say well, "Wow, Amazon is on this one. Oh, man I can't even get on this listing because there's so much competition, there's 29 sellers." Your next step is look for multipack listings. Look for your multi-pack listings. That's what you want to do, you want to look for your multi-pack listings because that way you don't even have to worry about the competition. As I said in last week's webinar most persons are not going to take the time to go and list on a multi-pack. They're not going to do it. Most persons are like if "I can scan and sell on the single listing, that's what I want to do. I'm not even gonna... Two packs three packs whatever." That should be music to your ears, that's what you want. You want... Now if you take the action, if you move forward and list it on the multi-packs, and list it on the three packs, the six packs, the competition, just gets very low and that's right there. The only other way to handle... A lot of competition is moving your products to different marketplaces and also going international. Jumping across. 0:13:58 BM: Let's look at an example of a multi-pack. Nathan, are you still seeing my screen okay? I wanna make sure that, last week we had a little glitch. 0:14:07 S?: No, I've got your screen but I wanna make sure everybody's getting sound here. There are a few people saying that they're not getting sound. If you run into that problem, usually logging out of the webinar and logging back in, fixes it. So anything you might have missed in that time will be posted on the replay. But I've got your screen it says, example multi-pack. The Timor Organic Fair Trade Coffee; I love the packaging on that. 0:14:32 BM: Oh, that is nice. That's what I really did just to make sure that person see... Look at this packaging, it's awesome awesome, awesome packaging and it's a three pack. Guys are you hearing me okay? Let me get a check-in real quick in the question box. Just let us know whether or not you are hearing sound coming through okay. We want everybody to get this... Okay, Cindy says okay. 0:14:59 NB: We're getting sound. 04/15/15 Page 3 of 20

4 0:15:00 BM: Alright, yep, yep, yep. Beautiful, beautiful, beautiful. Alright, were gonna jump here into looking at what we call a multi-pack listing. So we look at this listing, it's a Timor Organic Fair Trade Coffee, whole bean, Fresh Roasted Coffee LLC. It's a pack of three. Now individually, this would be priced pretty low because then on a single pack of this maybe it has to go for 9$ or $11, it has to go for... But now he's put three packs. And remember, this is an actual 12 oz... So if we look at it, it's an actual, it's a 12 oz. Bag that's $24.95 for the three pack. So he's getting a higher average selling cost because otherwise he'd have to sell the singles for $9 or $10 or $11 so now he just did three of the 12 oz... And he's doing it for So, this looks like a private label, it's fresh roasted coffee LLC, very nice packaging, it comes out at you. 0:16:04 BM: And if you look at the different things on the packaging, and this is just little hint for persons who are thinking about going private label, he has the nice USDA Organic. That's very important to have on your packaging if your coffee is actually USDA Organic, and that's sells it, that sells your coffee, then Rainforest Alliance. That's something that's also a very nice labeling to have on private label coffee as long as it is actually rainforest alliance coffee. So those two things stood out on the listing to me. I just wanted to point out that out for person's who are doing private label. If you can figure out how to get your coffee USDA organic or what other requirements, and meet that requirement for your private label product, that's gonna be excellent. Rainforest alliance, whatever you can do to figure out how to get in the rainforest alliance system, that would be good for your private label coffee. As long as your coffee beans meet the rainforest alliance standards and all of that. 0:16:59 BM: So here we can see... This is a three pack. Customers like to see a three pack. Why? It's more benefits, they're thinking, "Wow, I can buy one for 13, but I can buy three for 24." Customers love to get a deal. So when you put it in a three pack they're like, "Oh, wow! I'm getting three packs for $ If I bought all three singles it would have been $30. Oh, cool let me jump and get this three pack." It sells much much more [0:17:24] What we can note from this listing guys, look at this listing carefully, we're seeing a two lb variation, we're seeing a five lb variation and we're seeing a 12 oz. Ground variation. So these are different variations, remember there's ground, there's beans, there're different sizes. There's also flavor variation. As we move on we're gonna go into exactly how to get that done. So, again look at this listing carefully, and if you have one that has a lot of competition on a single listing, see how you can create a multi-pack. We're gonna show you how to do it. 0:17:56 BM: Alright, moving to the next slide. Your best by, and expiry dates. Now, there's a lot of questions coming through in the group regarding coffee and if they purchase from local roasters, and they're saying it's only six months, what should I do and how do I wanna get it done? In fact, you really don't want to have coffee sitting on you for six months or more. You really don't want to have that. So your testing and research process is going to be key to doing good business in coffee. You really don't want to just buy coffee and have it sitting because coffee is best consumed once freshly roasted and you get it to your customer as soon as possible. That's gonna create that good customer experience for your target audience, and that's what's gonna allow them to come back and purchase over and over and over again. So, as soon as it's roasted, whether you're getting it locally, you wanna get that out to your customers. If you're getting that from international, it's usually a two-week or two or three weeks lead time to get that product into you because they're gonna roast the product fresh, then they're gonna sample it [0:19:01] and then they're gonna send it over to you. 0:19:04 BM: So again, you want to get your coffee to the customer as soon as possible, and we always buy from sources, which are usually six months to a year out. Usually, that's what we look for, six months to a year out. That's just the time frame, so that gives us enough time to get it into Amazon, to get it on, listed and everything, get it received and sold. We don't want to keep the coffee for a long time. We want the coffee to sell. The K-Cups, biodegradable are good for six months. Most coffee are vacuum packed to preserve freshness right after roasting or grinding. We're gonna show you a picture coming up on the next slide of how that looks, when they're vacuum packed, and what they do is... I was traveling from Jamaica to the US with coffee and when we got there everything was all... The bag was just stuck together because of the suction. It's all vacuum packed and sealed. Why? It preserves the freshness. So when you open that pack, you get the fresh scent of the beans coming out there. There's these one-way valves to preserve the freshness. 0:20:09 BM: Customers love resealable bags. It's very attractive, it's desirable, they love to have resealable because they get to seal the freshness in there. So you open, you pour out the beans, you grind, then you seal up again. Customers love that. So if you're doing private label, you wanna ask your suppliers to make sure that the bags are resealable because the customers like that. The local roasters, their shelf-life is gonna be six months. Amazon usually expires your product, grocery items 60 days before the actual expiration date that's on the back. So remember that. They will put expired at least 60 days before the actual expiration date. So for example, we're in April, May, June... So today's April 6. So if you had coffee that was six months shelf-life and you bought it four months ago, by this time Amazon would be 04/15/15 Page 4 of 20

5 saying expired. So you have four months to get that coffee sold. So you have to be cognizant of the time frames that you have because you don't want to have your coffee sitting at Amazon, and then they're gonna have to send it back to you. There are a lot of things that you can do to mitigate that. We're gonna talk about that moving forward. 0:21:15 BM: So again, you need to test the quantities of inventory before you add a whole lot to your inventory. So you send in, you test, you see the sell-through rate, you start to do your advertising, you start to do your association, you start to do all your techniques to drive traffic to your listings so that you can get your product moving, you can get it moving and start to sell. Keywords is gonna be one of your biggest thing with that, and we're gonna do that as we move on into the process for today. 0:21:43 BM: The one-way valve for freshness. I'm hovering the mouse over these little valves here. So, if you see these little valves here on the coffee bags, it's the one-way. So once it's sealed and placed in these bags, just one-way with it for the flavor to go. So it kinda traps in the original flavor and the freshness of your beans, and that's what most coffee is sold in, if it's not K-Cups, most of the coffee have these one way bags, and it really traps the freshness for you. 0:22:13 BM: Now, in terms of expiration dates, here are some points that you need to keep in mind. You have to know when to lower the prices. You need to [0:22:24] great product at your local Target and get it on Amazon and you're doing well. You're making $10 a pop and it's selling 20 a day, 25 a day and you're happy. Then competition comes in; that's inevitable. Unless you have a private label, competition's gonna jump in. So just remember that. If you're selling off the shelf stuff, you're going to face competition. So when you have increased competition, it's time that you need to know, "Okay, how long have I had these at Amazon? How much longer can I wait?" So if you know, "Okay, well, I've had it for two and a half [0:22:57] now I need to just blow out, get these off of me and buy again to send in." So at that time, you may do lower prices, you may look at your variation listings and things like that to get these products out because it's time sensitive. You cannot have these products that Amazon are gonna send them back to you 60 days before. So you need to make sure that your sell-through ratio is good. 0:23:22 BM: So, you look at the customer feedback and the customer reviews and see what your customers are saying. What is your target audience? The ones you are trying to reach out to, what are they saying? Are they saying, "Hey, oh, this coffee doesn't taste good. It tastes like dirt." We're talking about actual things that we've picked up coffee and started to sell it and we've had this kind of feedback. So we know, we're telling you from experience. So we know, we react to that. We may pull a bag for ourselves and taste it and see, "Oh, wow, it's not good." Maybe we contact the manufacturer and say, "Hey, what's going on with this batch?" We've had that happen like one time or so to us in the whole four to five years, or four or five years of selling coffee. So, when you see the sales start to slow down, you have to have your strategies to get rid of it. 0:24:09 BM: You could lower your prices... A lot of times you will go into Target or K-mart, and if you pick up some coffee, and it will tell you "Postdated." The coffee is postdated, but they'll reduce the price. So, reduce the price just to get your coffee moving because it's easier to just get it sold than try to keep it there, because it's not something that... There's an expiry date on it. That's it. So, you have to make sure you get the coffee out there before the expiry dates. 0:24:37 BM: Best before dates. Now, that's what we are talking about. Now, this format here is, looks like month, day, year. So, that's best before December 4, That's your best before date there. There are certain things that you have to take into consideration when you are purchasing coffee. If you are buying coffee from outside of the US, like you have your manufacturers in the Caribbean, in South America, the date system is gonna go off of the UK system most of the time. So we're gonna have it as day, month, year. So, what we did as a best practice is to figure out what the expiry date is gonna be and just have them put the actual month and year like December So, it makes it a global system, a global best before date because it can't be skewed. We had coffee that was done and sent in, and the customers were complaining, "Hey, this coffee is no good. The date on it... " But we know that because of the dating system, they mismatched the dates and they were thinking, "Oh, it's gonna be... It's already expired. This is expired coffee. Why are you sending me expired coffee?" And that's normal. It was all because of the dating system. So, you have to be cognizant of where you're getting your coffee from and what's your dating system, because you want to ensure that your customers are not thinking that, "Oh, this guy is sending me expired coffee. I don't know why he's doing that." 0:26:10 BM: So, as was mentioned, the UK has a day, month, year format and most of the Caribbean Islands, or colonies from the UK, they will have their dating system that way. And also... So the easiest thing for us has just been to do a global format, month, year, November 2015 [0:26:31]. Make it very simple for everybody to understand it. So as mentioned, keep that best practice. Month, year makes it very very easy to sell your coffee anywhere. So, if you have to move your coffee to the UK, same thing. Everybody knows it's December 2015 or it's gonna be January /15/15 Page 5 of 20

6 Make it very easy for your customers. 0:26:54 BM: We're getting into our listings. It's multiple price, and we're getting into our listings now. We actually like to take clippings of actual listings and show you what we are talking about. Now, here is a coffee listing and this is a single coffee. It's for 2.2 lbs of coffee beans, the price is $21.15, and it's on Amazon FBA, sold by Amazon, free shipping. Now, let's look at this scenario. What would I feel comfortable paying for this coffee because it's been sold on... If Amazon is selling it, obviously they are keeping the price down. But for me, if I'm buying this Lavazza Coffee Bean 2.2, I'm looking at paying for the same 2.2 lbs, I'm looking at paying no more [0:27:47] from that price. No more than that. Because I'm gonna have to send it and I have to compete. But then again you're gonna look at the list, you're gonna say, "Why would I want to compete with Amazon?" 0:27:59 BM: If you look at the actual sales around a kind of product, the great thing that Amazon does is they drive the sales right down, very low, 2000, So, you know you are selling a lot a day. The good thing on this is when looking at this listing and creating the webinar, the slides, there was just a single listing. There was no multi-pack listing on this. But you already have a very popular brand. It's already low on the list. [0:28:29] So you can be able to create a multi-pack listing or even a flavor variation, and then sell the same coffee that has all the traction, has all the traffic and it's a popular brand, and that's the way to go around selling with competition like Amazon. Also, if you are able to get this coffee for a good price, Amazon do go out of stock. They go out of stock. And I can tell you, it is amazing when you are selling [0:28:57] when they go out of stock for an hour, you could have hundreds of sale. Just one hour, you could have hundreds of sale, because most of the items that they are on, especially in the coffee listings, are usually super low rack. Very, very low rack. 0:29:16 BM: Now, we're gonna look at variations. We're gonna start with flavor variations. And here is another Lavazza, and this has a flavor variation. Now, what's great about this is that as opposed to... Let me jump back here. This is a single listing, so there's only one kind of coffee on here. So, this is just a single listing. So, we jump back to the same. That's it. But when you jump over here, you now have... It's the same 2.2 lbs, but now you have flavor variation. So, you could have the Super Crema espresso, you can have the Crema e Aroma espresso, you have the Gold Selection, you have the Tierra! 100% Arabica. So again, same coffee but now you're looking at one, two, three, four, that's five different SKUs. Your customer doesn't have to run around looking [0:30:11]... 0:30:14 BM: Selection, they have to go to another page, everything is on one page. That's what we love to do because when you have coffee that's selling well, the worst thing is to have your customer, your ready, buying customer with his credit card already out, he comes on the list and he's looking for a particular flavor or a particular size, and he's like, "Man, I gotta go search for that size now. You know what? I'm just gonna buy this one and get out." But when you have everything presented in a nice layout right in front of your customer, it makes it very, very easy for them to make buying decisions. It's just like driving to your local Burger King or whatever. All the selections are right there, so it's easier for you to get upsold or to buy something that's an add on, so makes it makes for a higher average selling... Your average selling price is gonna be higher because now your customer is not just buying one item from you, he's buying multiple items because of variation. 0:31:09 BM: Moving on to our next slide. We just looked at variation in terms of size. Now we're gonna look at variation in terms of... No sorry, we got variation in terms of the flavor. We're gonna be looking at variations in terms of the size and multi-pack. Now, if I'm buying coffee and I come on a list again, I only see one option to choose from, for the coffee connoisseur or that target audience that you're looking at, they are discerning, and 50 cents could make a difference when they're making a purchase. So they're thinking, "Oh man, I don't have a lot of options to choose from", but when you have nice variation listing like this one that we're looking at at this page, you will see, there's a 16 oz. Bag. Let's say you're in the whole beans, there's a 16 oz. Bag, this is one page listing, one product page listing. 0:31:58 BM: So you have a 16oz bag then you can do two 8oz. You might think, "Why would you do two 8oz.? You could just buy the 16oz.". Maybe they need it for a gift, so if they buy two 8oz, it could be two 8oz of the same kind of coffee, but they could give one to mom and one to aunt, or one to mom and one to uncle. So it's a variation and persons just... You would be amazed at how much more you get sold when you have variation listings. Others are looking for... Coffee is one of the most gifted items. So people are usually buying coffee... So again your target audience, you have to think about what they're buying the coffee for. So they're buying the coffee for gifts, so they need two 16oz bags 'cause mom loves it and dad loves it or grandpa loves it, they buy three 16oz bag. Your four oz bags, they will buy four of the four oz, five 16oz bags. Personally, do you get sales on that? Yes, we can have a lot of sales on items that have these 8oz bag. 04/15/15 Page 6 of 20

7 0:32:55 BM: There's just so many things under variation but it gives your customers a lot to choose from. So when they come on the page, your chances of making a sale are going to be multiplied by one, two, three, four, five, six, seven, eight, nine, 10. You have 10 times the chance of making a sale on a multi-pack with size variation like this as you do on a single listing because your customer has a lot of choices and they can say, "I'm not too sure about this coffee so let me just try the four oz bags 'cause I'm not too sure, let me just test it" and once they go and test it, they're gonna come back and order one of the 16oz or two of the 16oz, maybe the next time they come back, they're gonna order five of the 16oz. We have seen that over the years. Once someone buys coffee from you and they love the coffee, they're gonna come back and buy over and over and over again and that is the biggest thing in selling coffee. Loyal, repeat customers. I cannot emphasize this any more, loyal, repeat customers. When you have them, you're gonna be like "Wow, this is amazing". They just come back and keep buying over and over and over again [0:34:01] and multi-pack variation. 0:34:09 BM: Here, variations continue. Look at this Gevalia, this is a nice brand that you can buy right off the shelf, and it sells very well on Amazon, very, very, very well, and you look at your flavor, variations in flavor, you have the Columbia, you have the Dark Royal, you have the Signature Blend, you have the Signature blend decaf. Remember, these big companies have a huge market [0:34:32] They're not gonna be doing this if it didn't work. So I can tell you that this works extremely, extremely well, and look, this is K-cups, you have the 18 count variation, you have the 48 count, you have the 12 count... Variations work very well, and it helps you to sell way more. [pause] 0:34:54 BM: Again, variations continue. We look at the size. There's a 12 count here, you have a 18 count... Then what this does is really good research for you. You could see "Oh, wow! The 12 count is selling way more than the 18 count or the 18 count is selling way more than 12 count". What are you prompted to do in your [0:35:15] you will know, "Okay, I need to order more of the 18 count than the 12 count because this one is selling much better." If you go back couple of slides and we look at that nice spreadsheet, that nice listing that you saw with all those different variations, it tells you which one of these products are actually selling faster and you're able to say, "Okay, the 8oz is doing much better than the 16oz", so we're gonna send in as opposed to sending, we're gonna send in 500 8oz and oz because you know the 8oz is selling better because of that, and over time you get to work it and you get to know which one you need to make sure that's in there. 0:35:54 BM: And with selling coffee [0:35:56] for Q4 when it comes up to show time. Because that's the time you need to be in stock. If you run out during Q4 you can miss out on hundreds of thousands of dollars just being out for a week. So you have to ensure that you find a find a vendor, and you find a source. You know when to get that in there so that you have enough for that time. 0:36:21 BM: We're going to jump right into it now. How do you create a variation listing? We have a nice video on how to do this, but I'm gonna walk you through the steps of how to create a variation listing page. It's not very hard and most customers think, "I can't do this, It's gonna be so hard." It's not very hard, and if you take action with us, you can accomplish it. 0:36:42 BM: Now you jump into your Amazon back office and you click on "Inventory" and "Add a product." So from the "Inventory" tab right here, you'll click on "Add a Product." Once there, you'll click on this tab right here "Create a new product." And one thing to note is if you have existing listings on Amazon, meaning you have a 16 oz., it's already listed. You have an 8 oz., it's already listed but they are not on the same page. These have to be of the same type. Meaning you can't mix a bean with the ground. It has to be a 16 oz. Bean and an 8 oz. Bean. A 16 oz. Ground and an 8 oz. Ground. You can't mix and match like that, it has to be of the same type. So, if you have an existing listing that's already a 16 oz. Bean and you have another existing listing that's an 8 oz. Bean [0:37:33] you could put those on a separate page so that when your customer comes to that page they are seeing the 8 oz. Bean and the 16 oz. Bean on the same listing. That's what we're gonna do here with creating a variation. So we click on "Create a new product" if the product is not already there and also when you're creating these products you have to get a new UPC code. It's $25 on ebay and you get 1000 of the UPC codes, so it's not very hard. [pause] 0:38:07 BM: Once you get to... You create a new product, Amazon is gonna ask you what location do you want to put that product in, and right here it [0:38:17] then beverages, then coffee and then roasted coffee beans. If you're doing ground, it's going to be the ground coffee or instant coffee or unroasted green beans, so all of the different categories are right here. So depending on what you're listing, you're gonna pick the appropriate category. 04/15/15 Page 7 of 20

8 [pause] 0:38:36 BM: Now important stuff to know guys. This is the variation listing page. This is where all the magic happens. You put your product name in there... We were just doing a test product so you put your product name in there "Best Gourmet Coffee" You put your brand name "Best Gourmet Coffee." The unit count you will put [0:38:55] three pack is gonna be one unit, you have to remember that. Even a six pack is gonna be one unit, so the unit count is one. Now under variation theme you're gonna select here what you're gonna do. So if you're gonna do flavor variation, then you check off the flavor. If you're gonna do a size variation, then you check off the size. For this example we're going to be doing a size variation, so I put a check mark on size. 0:39:22 BM: Stepping across to the size on the variation, now this is where you enter the information on the variation that you want. So we've already selected that we want size variations. So I have a nice line of coffee from this manufacturer and they have it in 8 oz., 16 oz. And 12 oz... I want all three of these sizes to show up on the same listing page, that's what I want. I don't want my customers to go searching for the 12 oz. And go searching for the 16 oz... I want to put all of them on one page, so when the customer hits that page, they're seeing all the variations, and they can make their purchases. That's three times the chance that you're gonna make a sale. That's why this is so critical. A lot of people don't use this, but this is very, very critical. You could add as many variations as you want, so you could always go click, "Add here." So if you had a 4 oz. Or if you had another 2.2, whatever you had, 2.2 lb, 32 oz., whatever, you add it right here on the page, so you could always click, click, click and add variations. We only did three because those are the three that we have. 0:40:25 BM: Right. So now you go ahead and you've selected the variations. You jump over to the next page and you would go ahead and put in your UPC codes. Again, we didn't put any UPC codes in here for the example. And if you have a seller SKU you could put your seller SKU in here. The seller SKU is usually is something that you use internally to identify that product. Like for running reports and all of that, you use that internally to identify that product, so you could put that in here. You could add your condition note and you add your prices on here, and the condition you're gonna put "New" 'cause obviously you're not sellin' used coffee so you're gonna put "New". And in your EAN or UPC, remember you're going to need a different UPC code, so guys just go to ebay and... Nathan had a link to that; we will talk about that in the question and answer section. Just go there and grab. I think [0:41:16]. You're not gonna use up 1000 right now unless you're doing a lot of private labeling. So this would require three of my 1000, so I would be left with 997. So you just put your UPC codes in here for each one of these, and we're gonna jump over to the next. 0:41:34 BM: Now, this is the section where you want to put in your intended use. We'll put kitchen, beverage, drink. That's the intended use, that's who we're targeting. The target audience: Adults, men, women, most of the time it's grown ups that are gonna be drinking coffee and other attributes: Clean, tea, coffee, ground, breakfast. These are... Some people will say tea even though it's coffee that they want. It all depends on where in the world they're from. It's just like something is a warm beverage in the morning, they call it tea, whether it's coffee or tea. That's just how it is. So we put tea in here as well. 0:42:13 BM: Subject matter: Coffee, coffee beans, and if it's ground, coffee grounds. Search term: This is your critical spot right here, your search terms. When persons come on Amazon and they put in these search terms, that is what's gonna pull your listing back. And what's critical is if you have a location, if you have coffee that's being sold [0:42:34] from the Caribbean, South America, Kona, wherever, you want to put that in your search term, because persons are gonna be searching for the actual... You know, Ethiopian coffee, Ethiopian whole bean. So wherever your coffee's from, put that search term within your search term here because that will enable that, you're gonna pull back a lot more of the customers that you want. So the search here is key. You want to make sure that you put all the associated items a person could ever search with. 0:43:03 BM: What's great for you to get added information too is if you go to Amazon and you start to type the particular coffee. Let's say you're looking for Ethiopian coffee. You start to type in "Ethiopian coffee." Amazon will bring up a lot of the actual search phrases that are used when persons are looking for that kind of coffee. So you wanna pull all of that as well and put it into your search term because you want to ensure that you're specifically targeting that audience. 0:43:31 BM: Your description. You're gonna put all your description. You're gonna put where it's from: "exotic roasted beans," "Ethiopian roasted beans," "medium roasted for flavor." You're gonna put all your product descriptions in here. Anything that can draw attention [0:43:44]. If you're Rainforest Alliance, if you're USDA Organic, those are 04/15/15 Page 8 of 20

9 important things to put in your key product features because persons buy because of that, especially with the K-cups. Lot of persons are environmentally friendly. They don't want to say, "Hey, these plastic cups [0:44:00] natural K- Cups that are in the biodegradable cups, you put that as a bullet point in your listing because that's why a lot of people buy it. They buy because of what is this product, who is this product reaching to? Is it reaching to those who are environmentally friendly? A lot of them are just saying, "Oh, these guys are putting all this plastic all over and it's hard to break down." But if you have coffee and it's in those biodegradable K-Cups, you want to edit that. You want to make sure that is in your listing. 0:44:31 BM: Images. Always [0:44:32] images for your products. If you are going to be creating a product page, ensure that you put the time into getting good images, even if you have to pay for them, because this sells your coffee. Anyone that's on this webinar, you know how important it is or how good you feel when you go on a product listing, you're gonna purchase something, and they have very nice, clean pictures. Really nice. And don't worry if you can't take these pictures, and you're thinking, "Oh, I can't do it. I don't have a professional camera. I don't know how to do it." There are services that can get that done for you. We're gonna talk about one of them in the next slide. So remember, as many pictures that you can get in there, real professional [0:45:10] pictures because you want your product to sell, and these images I can tell you are very good ways to sell your products. 0:45:19 BM: So let's look at some of the variation highlights. Different UPC codes. You will require different UPC codes for each variation size. So if you're doing a 12 oz., 16 oz., 4 oz., you want to have your different UPC codes that I mentioned. You can get them on ebay, 1,000 for $25. You want to ensure that you follow Amazon's policy so always ensure that you follow Amazon's policy when it comes to multi-packing [0:45:47] variation. You're not gonna want to put a bean with a ground on the same variation listing. No. You do bean with bean, ground with ground. You can do variations in terms of flavor, variation in terms of sizes and different things. 0:46:02 BM: Critical to remember. When you create a variation, you're gonna have what's called a parent and child listing. So the parent listing is gonna be the first single listing that you had and then all the child listings are gonna be all different variations. If you delete the parent listing, you will delete all the associated child listings [0:46:22] So that maybe you go in there, like, "Oh, I don't like this one. I need to fix something. Let me just delete it." You have to remember that it's associated with a child listing and it will delete everything. 0:46:33 BM: We have used pixlr.com. Very good resource site. Sara found it and it's a very good resource site. We use that for the background. So all she does, she just takes the pictures and you can do it yourself. I think they do offer some kind of service but you can do it yourself. You take a picture, you upload it, and they give you that little tool that you just mark around and it takes it out, gives you a nice clean background. And we put it on there and nice, good quality image. So if you have a Smartphone and you take a picture, make sure you have a nice background and you take the picture, you send it to them, they'll fix it up so it looks really nice and professional and put it on your... You can get it back to add to your listing. [0:47:13]. 0:47:14 BM: Can be used to combine existing single and multi-pack listings. So variation can be used to... If there are already existing listings, but you've listed just single, so you just have [0:47:27] you have a 5 lb package over there and just two different listings, you can use variations to combine those listings or you can add a new listing and combine it to one that's already existing. So that's a point that you want to keep in mind. 0:47:46 BM: Again, the before and after. So before you had a single product, after you have all of these, and they're highlighted on one page and as was mentioned before, this gives your customer three times, five time, eight time, 10 times the chance to make a purchase because they have different variations, different pricing, and it is something that they will now see, 'Oh wow! I can purchase the 4 oz to try, I don't really want to go with the 16 oz, too expensive right now." But once they buy that 4 oz, it's just like getting them in, once they buy that 4 oz, they're gonna say, "Hey, this is too small, it got finished too quick so I'm gonna go for the 16 oz, I'm gonna go for five 16 oz pack." Multiply our sales. 'Cause a lot of persons, just, they're on a single list and it's not selling, they move on. We do variations, size, flavors, and this is what we use to multiply our sales. 0:48:42 BM: Your homework for this week is going to be getting coffee from local stores. As I mentioned earlier, I want you to download the apps, download the apps that you have, be it local Target, your local Target, Walmart, Walgreens and they always have weekly specials, they usually have specials on coffee because coffee is consumed every single minute of the day. So they're gonna have specials on coffee. Do your research, and then when you've gone through this, we want you to create a variation list again. That's what I'm gonna be helping you with, me and Sara, we're gonna be helping you with this week, creating variations of single products that are already hot, already on Amazon, 04/15/15 Page 9 of 20

10 already selling. Also creating multi-pack listings. 0:49:34 BM: Guys, you can do it. This is something that if you take action on this, it will definitely help your business. These are things that we learned by, over doing and doing, and doing then we're like, "Wow! The variation packs really sell well. If we have this, we're multiplying our chances of making a sale" and that's exactly what I want you to do go, up there, check with your local people, and it's great to see persons coming back to the group, they have [0:50:00] They've gone out there, they've taken action, I love to see that, we really commend you guys for going out there, calling those local roasters, getting the deals, getting the numbers and coming back and looking for advice; that is really commendable. Those who put in the work, those who take action are the one that will succeed. This is a doable business because it is a commodity that's traded every single day, so it's very, very doable. This can be done guys. 0:50:26 BM: I want you to go up there, look for these items and come back, let's brainstorm strategies. Let's brainstorm how we can do this, 'cause I mention we're gonna have another hour private Q&A sessions. I usually just look through the group, go through the group, like any question that comes up [0:50:41] we'll fix it, we're gonna make this happen. We're looking forward to see you guys at the coffee fest in June, in Chicago. That's gonna be amazing, we're gonna be on the grown we're gonna be talking to these people, and as I said, even if I can't take all the persons on one day, Sara is gonna be there with me, she will be able to walk around with five or eight persons so you can reach out to her in the group. And we're gonna be able to walk around, we gonna go through these vendors. From now start researching vendors that are going to be there. You can go on Coffee Fest website and you'll see all these vendors registered, and [0:51:13] plans now because that's gonna be an exciting time to be there, to be walking, to smell the coffee. 0:51:20 BM: We want to wake up and not only smell the coffee, but we wanna wake up and sell the coffee. Look at what's possible, if you take action. Guys, this is just in the last year, and this is one of our stores, and 255, that's just one store. We're sitting here in an island, and look at the number that's responsible to grocery. That's all coffee right there. This is something that I'm so passionate about. This is coffee, grocery, this is coffee selling right here. Most of the times we were out of stock, we do [0:51:54] has some personal care but the grocery, that's like 90% of our business. That's what we do, that's why I'm passionate about this class because we do this everyday. We know it works, we know you can do it, if you were going to take action on this, this is something that will work for you. 0:52:14 BM: Hopefully you guys have your questions in there, we're gonna take your questions from the next 15 or 20 minutes, and then guy, it's back to the Facebook group, back to getting out there, it's back to the hustle. Go up there, start looking for these deals because they're there. I mean we're looking to be in the US for usually November 15 to December 15, where we will just be on the ground, do some RA, what our business mostly comprises of wholesale. Calling the manufacturers, calling the vendors, direct contact, and when you get a system up and running, the beautiful thing with selling coffee is that one or two or three good vendors could be the bulk of your business. Like right here, I can tell you that about 150,000 of that could be attributed to five of our major wholesalers. And we hardly touch that anymore, we don't even see, we don't even smell that coffee anymore, just goes right into Amazon [0:53:10] Hawaii to Florida, Florida to Amazon. It just goes right into Amazon; we don't even have to touch the coffee anymore. So this is something that you can do if you take action guys. Hopefully Nathan, we have a lot of questions in here, so we're jumping off to the Q&A session right now. Let me see if I get it back in here. 0:53:33 NB: I'm getting, I have to apologize, I'm getting overwhelmed with questions and they're some really good ones and I think that there's a little bit of confusion about doing a variation listing versus doing a multi-pack, bundled listing. Let me give you an example where I do a bundle listing. I get a gift basket or I order specific coffee mugs I found that, His and Hers coffee mugs, right, makes sense, I'm not gonna give away what I put on 'em but you can have those easily made for you; there's various sites that do it, like Zazzle or Cafepress, but then you can put even two different types of coffee, right? One that would maybe be a light roast and one that would be a dark roast in this gift pack. And if I made a gift set then I would create my own listing, with my own UPC, my own bundle. Now the difference between that and a variation listing is gonna be where let's say you're selling the same product and the same type of products. Like Barrington mentioned there was bean, that's the raw bean that you have to grind and then there's... 0:54:42 BM: Ground? 0:54:43 NB: Ground coffee, right? So if you come across a roaster and let's say they've never had their item listed on Amazon before, yeah, you can create that listing and not have to bundle it into multi-packs and mark it "sold as a set" like you would do a traditional bundle, but you can variation it by saying, "Oh you can get an eight oz. Bag or a... " and each variation will have its own UPC, but it's only gonna be for whether it's ground coffee, and is this an eight oz. Bag 04/15/15 Page 10 of 20