Coffee Roast Business Pricing Calculator
Created by: Olivia Harper
Last updated:
Build sustainable wholesale and retail price targets from yield-adjusted roast economics.
Roast Business Pricing Calculator
CoffeeSet sustainable coffee prices from yield, costs, and target margins
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What is a Roast Business Pricing Calculator?
Turning roast operations into sustainable pricing
A roast business pricing calculator estimates sell prices from real production economics: green cost, roast yield loss, packaging, overhead, and target margins. It helps roasters avoid underpricing and keeps catalog pricing tied to current production reality.
This is especially valuable when green markets move quickly or when product format changes (for example 12 oz vs 2 lb bags). Using a consistent pricing model improves margin predictability, planning confidence, and communication between roasting, sales, and finance.
Treat this as a decision framework. Final price setting should still include channel strategy, competitor context, and brand positioning.
Pricing Model
Cost build-up and margin conversion
Roasted Cost per lb = (Green Cost per lb / Roast Yield Fraction) + Overhead per Roasted lb Cost per Bag = (Roasted Cost per lb × Bag Weight in lb) + Packaging Cost per Bag Wholesale Price per Bag = Cost per Bag / (1 - Target Margin) Retail Price per Bag = Wholesale Price per Bag × Retail Markup
The model first converts green costs into roasted costs using yield, then applies per-bag costs and margin targets. This keeps pricing aligned with true sellable output, not just raw input price.
Break-even bag output uses contribution margin per bag and fixed monthly costs to estimate minimum sales volume needed to cover operating overhead.
Example Calculation
12 oz wholesale planning case
If green coffee is $4.80/lb, roast yield is 84%, overhead is $2.20 per roasted lb, packaging is $0.48 per bag, and bag size is 12 oz, your modeled cost per bag can rise quickly above intuition. A 42% target wholesale margin may imply a significantly higher sell price than a simple markup on green cost.
This same framework can be used to compare alternate packaging sizes or updated green contracts before committing to a catalog repricing cycle.
Common Applications
Practical uses for roastery operators
- Setting wholesale and retail prices for new releases.
- Updating pricing when green costs or yields shift.
- Comparing margins across bag sizes and channels.
- Estimating break-even sales volume for monthly planning.
- Aligning sales targets with contribution margin goals.
Tips for Better Pricing Decisions
Keep assumptions current and channel-specific
Refresh yield and overhead assumptions regularly from production logs and utility records. Model wholesale and retail separately, and avoid using one blended margin target across all channels. Small assumption drift can create hidden margin erosion over time.
Frequently Asked Questions
How is roast pricing different from simple cost-plus pricing?
Roast pricing must account for roast yield loss, packaging format, and operating overhead per roasted pound. A simple green-cost markup often underprices finished coffee.
Should I price wholesale and retail with the same margin?
Usually no. Wholesale pricing typically uses tighter margins at larger volume, while retail pricing can include a higher multiplier to support channel costs and variability.
Why does yield percentage matter so much?
Lower roast yield means fewer sellable pounds from each pound of green coffee. Even a small yield shift can materially change your true cost per roasted pound.
Can this calculator replace my full financial model?
No. It is a pricing decision tool, not a full accounting system. Use it alongside bookkeeping, labor allocation, and channel-specific cost analysis.
What is a good way to use break-even bag output?
Use it as a planning threshold. Compare break-even bag count against realistic monthly demand to decide if pricing, cost controls, or production mix need adjustment.
Sources and References
- Specialty Coffee Association resources on production and quality economics.
- Roastery internal costing frameworks for yield and contribution analysis.
- Food business margin-planning references for channel-based pricing strategy.