3.++Finance

= Finance ideas, issues and problems = Thursday 12 May, 2011 **For this week: finalisation of things needed to produce the coffee, source, costs (group research will be needed!). Please write up all ideas!**

**NEW UPDATE 14th June: After completing the customer surveys, I agree with Kabir that we should charge a flat rate of $2.50. We have also ordered both machines & grinders. See you next Thursday for training.** Black Label 1kg bags …………………………………………….20.00 + GST Hot Chocolate 750g bags…………………………………………. 6.00 + GST Sugar Sachets (white/raw) 2000 in a box………………………..21.50 + GST Cups 12oz (360ml) 500 in a box………………………………... 70.00 + GST Lids 1000 in a box………………………………………………… 48.00 + GST = With initial discussion of group, work out which machine(s) we want to buy = = Ms Stevenson: Great points guys - now we need to develop a spreadsheet with the following headings: items to buy, brand, supplier (e.g. woolies etc) and price (based on prices you have researched - remember we have $2,500 all up) = · How many machines? 2 home or 1 commercial (can this be achieved?) · Capabilities of machines? Must be able to simultaneously texture milk and make coffee · Do we have dedicated coffee/ frothing machines? No  · Given the height, maneuverability etc. of the machine, can we utilize larger milk jugs? Yes! · Extras: thermometers, frothing jugs for quality, efficient coffee and measuring cylinders etc. to ensure accurate costing and production of coffees? Just thermometers and milk jugs! · Grinders: What type (remember ability to change grinding, grinding into grouphead?) After discussion with CFO, this will be done by a cheaper grinder into a 'bucket' type configuration 2. Work with production team to identify things required to purchase:
 * 2x Breville Pro 800 Programmable Espresso Machine: 15 bar pump, espresso gauge, semi auto
 * Jacky: Remember we still have two machines...I have experiemented on the weekend, and pouring 2 shots of espresso takes about only 10-15sec and frothing in about only 5secs (with the quality we have) Wil be fine, we can experiment and trial and see how things go the first week. And if it is really that desperate for more milk frothed, we can just a milk frother only $40 at Big W. Not bad idea. **
 * Okay Jackie, I agree. I'll look up some pricings as I doubt the major retailers have the best option! **

**Should we get 1 for each station?** **Jacky: I definitely agree that we should invest in a quality grinder with semi-auto functions of courseness setting and amount of cups/shots. Accuracy in coursness is essential to get the best crema for the coffee. Having this function will insure accuracy and ease any guess work from the grinding person.** **Possible machines to look at:** ***Breville Conical Burr Grinder-has everything we need-$99 Special at Harvey Norman-huge capacity, top of the line.** **I was thinking that we could get the** ** Sunbeam EM0450 from the Appliance Warehouse. It's only $120 and, due to its functionality, means we realistically only need to buy 1. Also, we can acutely adjust the grind and is also a conical burr system. Also, if we get it from the Appliance Warehouse, it also means we can order the thermometers, larger milk containers etc. from here. **
 * 1 or 2 coffee grinders (values at around $20-$30 for decent quality one), no need to spend too much on grinder
 * Coffee/espresso bin-for freshly grinded coffee beans.
 * Cups with lids-organising b ulk online about $130 for 1000 cups


 * Serviettes-optional for people to take if needed-put a stack out-costs about $10 for heaps-very cheap at dollar stores


 * Paddle pop sticks-if required-no need for spoons-much cheaper and efficient-very cheap at dollar stores


 * Tray for cookies, muffins etc.


 * Possible extension cords-very cheap at dollar stores

**I will first try and discuss this aspect with the catering staff and see if we can rent a water tank from the school.** Ms Stevenson: We should be able to talk to the kitchen and get water in a cordial container on a trolley ... this seems like the easiest thing to do
 * Possible water tanks for tap water storage

Without jeopardising quality, we are trying to spend the least amount of money possible and have more remains-most things would still do the job fine. **Jackie, I love the work your team is doing, but remember that we do not, and should not, instantly go for the cheapest option! e.g. could we spend a little more on a grinder for easier times making coffee** **Jacky: I totally agree that we should invest in a quality grinder.** We are negotiating price per cup-but should be kept the same-more simple and attractive $3 per cup was suggested with is reasonable-outside cafe charge about $3-$5, but considering at school and selling to students-needs to be cheaper and more attractive-$2.50 would be ideal and simple-survey will be done.

Eliot: I have been thinking, what is it that every person in the school wants? A short-cut to the front of the tuckshop line. Maybe we could work with the tuckshop and also sell raffles for an extra dollar or two (only avaible if you have bought a beverage). This raffle could maybe last a term or so? Anyways, if u guys like the idea, Gibbons can sort it all out:)
 * Hi El! I know this might sound weird, but it is sort of supporting our competitor (indirect competitor it may be)! And I'm not sure about the whole enforcement process, it may just make a lot of people cranky at us! ﻿ **

Kabir: Hey Jacky, on the topic of loyalty rewards, do you think we should offer a sort of stamp book that allows you a free drink after purchasing 5 cups of coffee/hot chocolate like I suggested a couple of weeks ago? Or would this not be financially viable? Also according to the customer surveys, pretty much 90+% of the respondents have said that $3 per cup was too expensive for them, but that $2.50 seemed pretty reasonable.