Aug Financial Update
Aug 2024 books have come to a close. With our second month of operations completed we have optimize our processes to drive greater profit margin gains, and have a bright September outlook.
Revenue and Sales Performance
Initial boon revenue from August waned significantly as friends and family purchases dwindled. Revenues totaled only $161.31 this month. Koffiyeh will need to improve it’s marketing and partnership efforts to improve revenue numbers for the coming months.
Breakdown of Expenses
Running an online store comes with its set of operational costs. Here’s how our expenses were allocated in August:
Contracting Costs: $223.86 was spent on design contractor to help redesign packaging for our new supplier process requirements, and to build out the partnership page. This is a worthy investment to help lower our COGs and to open an avenue to partner with reputable brands that can market Koffiyeh on our behalf.
Cost of Goods Sold (COGS): $132.76 went towards COGS. Total paid to our supplier. The COGS rate has gone down due to building out a in-house API that allows us to send orders directly to the roaster instead of paying a middle man service to do so.
Marketing: $135.09 were spent on marketing efforts. Ordering and giving out samples will be a continued expense to promote the brand and to win over partners. Orders for Koffiyeh business cards were also made in order to promote the brand in person.
Misc: $6.69 went towards taxes and fees as it relates to paying out our payment processors.
Profits and Donations
Koffiyeh generated $28.55 in profit in August. Although 50% less than July, we’re happy that we have increased our profit margin from 12% to 22%. This was done by lowering our COGs. Our custom built API has allowed us to cut out the middle-man and it’s associated costs to ordering, and now we can send orders directly to the roaster. The current margin is a mix as we implemented the new API mid-month. We are looking at a larger profit margin for September and onwards.
Profit amount will be doubled to $56 and donated to IRUSA under the Gaza Humanitarian Aid effort. Koffiyeh also paid for the transaction fee so that usage of profits are maximized.
Looking Ahead
The month of August in terms of Sales was lackluster, but the month was very productive in terms of gaining efficiency. Here’s what we are working on in the coming months:
Building partnerships with well established non-profits and content creators to help propel visibility of Koffiyeh.
Developing new coffee blend to launch a second product by end of October or early November.
Creating a membership program to donors, so that they can have more say in the direction of Koffiyeh.
Expand out social media presence through the use of social media experts.
Continue on exploring options to wholesale Koffiyeh to physical locations.
