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Video transcript
Danny: The lemonade stand is a very good analogy; you have to be where the people are. No matter how beautiful and cool and neat your lemonade stand is, if there aren't any people around, you're not going to do very well. We get the coffee, we roast it, and then we want to sell it to somebody. Well, who wants to buy it? You have to find your audience. How are they going to know you have it? That's marketing. I think in a broad society there's this notion, "I just need to get open. I just need to get open," whether it's a store, a restaurant, or an internet site today. They just think that when they open that storefront or open that website the world's going to come find them. Then the money will roll in. I need to put myself front and center, and have a compelling product, and a compelling story for you to be able to make that risk and buy my coffee. In the early '90s, and even to some extent right now, we're kind of an immature industry, and we're snobby, and we're pretentious. If you were a discerning customer interested in quality coffee, I didn't really care where you were sitting; if you were at a coffee house or a grocery store. Women buy 75% of the coffee, and women do 75% of the shopping, and women are in the grocery stores. That's where they want to buy it. Then the other notion was, you can't sell quality coffee in offices. So, we didn't get caught up on all those fools and arguments in my mind, about where quality coffee should be sold. It worked out really well. We didn't know it at the time, but we were establishing ourselves in these various market channels. It was complicated. Again, we didn't really know any better. We just did it. We figured it out. Today we've established ourselves pretty solidly in various market channels. There's a couple things about coffee that are somewhat different. Sometimes you hear it described as an affordable luxury. That coffee has gone through up to nine sets of human fingers. It's taken a year for a coffee tree to produce a pound or a pound and a half. It's taken five years to get to the point where it can produce that first full crop. Then that pound of coffee is going to produce 50 to 55 cups. I can get all that for 15 cents in a couple of minutes at my house? That is a steal. I'm going to sell to the people who love the taste of coffee and love coffee. I'm not going for the person that just wants a little caffeine to go. Back in the day, it was pretty easy when I was putting this plan together. It was higher the education, the higher the specialty coffee. The higher the income, higher specialty coffee. Those are two still strong pieces of data. Today, kids have grown up with quality. They know quality coffee. The ones that know it, know it and they like it, and they know what they like. If they have $5, they'll buy a cappuccino and a biscotti. Kids are growing up today with quality, so it's a different market. We're selling to a much greater, wider audience.