Dec Financial Update
The year has come to an end, we’ve been running Koffiyeh for 6 months now and we couldn’t be happier with the progress we’ve made! We have a wholesale partner, subscribed regular donors, and larger partnerships in the works with various non-profits.
We also went to ICNA-MAS in Chicago at the end of the year and met with many amazing non-profits that we hope to work with in the New Year.
We also passed the $1,000 profit mark at year end. We’re very happy of how far we’ve come in terms of building a business model that can grow and support humanitarian aid
Revenue and Sales Performance
Product revenue reached $322, a 28% month-over-month decrease, the slow down was due to less focus on pushing for sales during the month due to a cross country move. We’re trying to expand into more heavily partnering with non-profits and making wholesale deals. Direct to consumer is very capital intensive with promotions and advertising.
Breakdown of Expenses
Running an online store comes with its set of operational costs. Here’s how our expenses were allocated in December:
Transaction Fees: $8.12 went towards taxes and fees as it relates to paying out our payment processors.
COGs: $156.48 went towards paying for the cost of coffee beans.
As we scale back marketing and web development our expenses have become more stable. Most expenses are around sales related costs such as cost of goods and transaction fees.
Profits and Donations
Koffiyeh generated $156.48 in profit in December, a 46% drop month-over-month net profit. Most of our profits were from regularly subscribed donors, and from wholesale orders. We’ll continue to find ways to close wholesale deals and work with non-profits to boost sales.
Profits will be rounded up to $200 and donated to HDF which will helps in the humanitarian aid of those affected within Gaza. Koffiyeh will also cover the transaction fee costs to provide maximum benefit to the organization.
Looking Ahead
The month of December was a bit of a slow down due to focus being split. Here’s what we are working on in the coming months:
Continue building partnerships with well established non-profits and content creators to help propel visibility of Koffiyeh.
Work towards creating an in-house roasting platform.
Creating a membership program to donors, so that they can have more say in the direction of Koffiyeh.
Partnering with event based coffee brands to have a greater reach to potential coffee lovers.
Continue on exploring options to wholesale Koffiyeh to physical locations.
