Oct Financial Update
October 2024 has wrapped up. Our fourth month was massive in terms of growth. With enabling a partner, we can truly see the power of Koffiyeh going to work! With a great October in terms of sales and profitability, we feel optimistic for November as we continue to partner with more organizations and widen our product offerings.
Revenue and Sales Performance
Product revenue reached a record high of $709, thanks to our partnership with A Continuous Charity (ACC). Koffiyeh's limited social media presence makes us depend on partnerships to promote our products and mission. We will look for suitable partners to help increase revenue and enhance our Instagram presence. Looking forward to November, we are working hard on partnering with three other organizations.
Breakdown of Expenses
Running an online store comes with its set of operational costs. Here’s how our expenses were allocated in October:
Transaction Fees: $29.60 went towards taxes and fees as it relates to paying out our payment processors.
Subscription: $50 went towards paying Roastify for a Pro membership which allows us to sell single serve pods, and gives us priority 2-day shipping to our customers.
Start-Up Funding: $116.23 went towards buying two 5lbs bags of Fajr Fresh coffee for a new coffee cart start-up, The Bean Guys. This is to help encourage the college students running this new venture to keep pushing forward.
Marketing: $11.54 went towards printing out signage to sell beans at physical locations.
Design: $671.59 went towards our designer to pay him for the work for the new single serve pod products and the new coffee blend being introduced in November.
Expenses went up since we had to pay our designer for the new products we worked on introducing. Outside of the design expense the month would have been profitable again. We do not anticipate using the designer in the near future as we focus on maximizing profitability.
Profits and Donations
Koffiyeh generated $343.75 in profit in October. This is looking at incoming cash from sales, less COGs. A 179% increase compared to prior month! This was done in combination of the extra sales volume we got from ACC marketing to their donor base on our behalf, and receiving donations that are 100% profit. Our effective profit rate was 50%.
Profits will be rounded up to $350 and donated to ACC’s fund that will go towards helping students who need legal aid from protesting the occupation and genocide of Palestine. Koffiyeh will also cover the transaction fee costs to provide maximum benefit to the organization.
Looking Ahead
The month of October was an overall success. We want to carry on with this momentum and work towards. 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.
Partner with a local roaster and build out logistics network with them to have more control over product offerings and costs.
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.
