CoffeeMasterClass.com. Coffee Master Class. With Barrington & Sara McIntosh. Webinar 3 Product Research, Coffee Bean Profile, Wholesale, Exclusive

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1 Coffee Master Class With Barrington & Sara McIntosh Webinar 3 Product Research, Coffee Bean Profile, Wholesale, Exclusive 0:00:00 Speaker 1: I am really, really excited about tonight. Barrington is going to be just flipping gold nuggets out to all of us here. So, he's gonna actually be going in, showing us live what to do, how to do it, hands-on. This is where you get, I think the value out of these trainings. So Barrington, how are you doing, my friend? 0:00:22 Speaker 2: I'm doing well here, Nathan. I'm doing well. I'm doing well. Excited to see everybody coming on. We have 30 on so far. People are filing in. We're gonna just allow a minute for persons to file in. This evening, we're gonna be looking at product research. We're gonna be talking some more, getting more intimate with the beans. And we're also going to be talking about the coffee profile, what the coffee tastes like, if it's medium roast, if it's dark roast, kinda learning that lingua a little bit more. Because I've heard some of those questions coming through in the Facebook group, so I thought, "Let's address it directly." And also, what we'll be doing tonight is, we are going to do some reverse engineering, and I'm gonna do it live. I'm gonna show you how, myself and Sara, what makes us tick when we look at a product page, what to look for, how to see the quantity that persons have on hand and then kinda track it to see, "Okay, this person has 50. Let's see if he has 32 more. Oh, that means he sold 20 yesterday," kind of giving you real live stuff. 0:01:26 S1: So, hang tight to your seats, guys. We're gonna have a lot of hands-on today. Take this information. Write it down. You're gonna have the replays. You're going to get it. And we are also going to be talking some wholesale, and we have some wholesale nuggets at the end, so stay tuned. Tonight is going to be jam-packed. We're going to be giving you great nuggets tonight, and actually having a few things on the end of the webinar that you guys will definitely, definitely appreciate, so that's gonna help you tremendously, and everything is going to be laid out. So, looking forward to this guys, just another minute and then we'll kick off here. [pause] 0:02:10 S1: Hey, Barrington, I just wanted to let you know that today, from Ghana, Africa, I received a bunch of coffee, and I imported it, and boy, it's a lot of work, but I can tell that the venture is gonna be worth it. It just needs some refining. It needs to be labeled properly and all that work that goes into it. And if you go into this knowing, "It's a process but I'm in it for the long haul," and I may not shoot out of the gates, making $20,000 a month, but you will get to that point if that's where your mindset is, and if Page 1 of 26

2 you're writing down your goals, and you're kinda keeping a business journal of these things, and you're action-oriented. 0:02:57 S2: Definitely. And I often thought to get that point, Nathan. This is not an event that's gonna happen and it's gonna be done tomorrow. This is a long-term process, guys. If you are into coffee for the long-term, for the long-haul, you will see that there are tremendous results to be yielded, if you put the time in, if you make this a business. This is real, especially if you're thinking about private label. You're just not gonna have a Rockstar coffee or private label in two days. It doesn't work like that. You have to put the work in, build your reviews, do all of that. 0:03:29 S2: Alright guys, let's kickoff. We have lots to cover today. We're gonna be, for about 45 minutes, talking, getting the content in there, and then afterwards, we are going to take your questions. So again, if you have questions, just keep your questions written down, or post it to the question box and we will get to your questions at the end of the webinar. 0:03:50 S2: Product research, coffee bean, the profile, the medium roast, dark roast, light roast, and we're also gonna be talking about exciting stuff tonight, guys. We're gonna touch on wholesale and exclusive, which is where I want you to get to eventually, and that is where you can really see, because coffee is such a wonderful replen item, when you get into wholesale and replens and exclusive, that's where you really see the power of trading coffee. Alright, Nathan, are you seeing my screen okay? I wanna make sure that you're seeing the screen and advancing, and you are actually seeing my screen, so just let me know if you are seeing my screen. 0:04:27 S1: I've got you. I've got you coming through clearly and everything sounds great as well. 0:04:32 S2: Excellent. Alright, let's jump into some updates. It's been six weeks in. So, the Spreecast, the replays we do... Four weeks, I'm sorry. This is our third webinar. We do Spreecast every other week. So, next week, we're gonna do another Spreecast on actual questions, anything that I see come up during the week, any question that's repeated over and over, we'll jump into those. So, next week, we're gonna have another Spreecast. It's going to be... The link will be posted in the group in the Events sections. The webinar replays, we work on getting those available to you within hours afterwards, because they have to be edited and everything has to be perfect, so we work on getting those to you within hours, so look out for those. It's on the "Thank You" page. So all the recordings from before are on the "Thank You" page. And if you look in the Facebook group on the pin post, there is a link to the "Thank You" page, you can click on that, you get all the recordings. 0:05:34 S2: Access to international series for expansion, remember, we're gonna be taking this global. It's not just selling in the US. It's selling in Canada. It's selling in Europe, selling all different platforms. And that course that I did last year with Sara and Nathan, that is available. The recordings are available, and it's free for anyone in this Page 2 of 26

3 master class. So, it's not only for coffee, but it's a great way to sell coffee and expand to the UK, because there's no VAT taxes on coffee in the UK, so you'll get a great start. Facebook page, the events, click on Events and that is where you'll find all the different events registered. If you're registered for this live, the registration will carry you right to the last webinar, so you only have to register one time for these webinars and it will take you right through. You don't have to worry about registering the next time. It automatically sends you an and a reminder about when you are ready to go. 0:06:35 S2: Coffee Fest, anyone that's going to the Coffee Fest? I already have 10 persons for the walkthrough on the first day, and I also have another walkthrough scheduled for the second day. It's gonna be for about an hour. We're gonna go live. We're gonna talk to the vendors. We're gonna get that coffee lingo going, maybe get ourselves some wholesale deals. That's what we're gonna do. 0:06:53 S2: This course, why I structured it this way is, yes, we can talk but then, live action. I like to do live action so we can get results. We want to be able to get results. So guys, if you haven't reached out to me yet, I think I have a few more slots left for the second day. First morning, we're gonna be walking for about an hour, hour and a half. Second morning, same thing, walking for about an hour, hour and a half, with anyone that's there. And this is going to be where we do hands-on, where we talk to the vendors and we're able to, kind of get that feel of, what to say, what's the narrative? What do I ask for? What about minimum order quantities? We're gonna talk a lot more about that, moving forward. 0:07:36 S2: Alright. Product research: Now, we've been talking about coffee, but just from the basic product research, we kind of wanted to drill down on what coffee would taste like coming from different areas of the world. Many persons would say, "So how do you know it's coming from Ethiopia, or how do you know this is a Caribbean bean, or how do you know... " That's usually... If you go through on the detail page of any of these products, you will see that information there. But because you're training in coffee, you want to know your product. You want to know what you're selling. Now, in Central America, there's a particular climate, and because of the altitude and this climate, the coffees are, like you have a very similar taste, and it's more fruity. It has fruit-like characteristics, and they're often referred to as that "coffee balance". Now, many persons will hear that coffee connoisseurs refer to "profile" of the coffee, so that really tells you what kind of coffee it is, whether it's a bit fruity, or whether it's chocolatey, whether it's nutty. It's just telling you the profile of the coffee. And your target audience, as we spoke about before, you want to know what kind of product you're selling to them. 0:08:51 S2: Some persons like a medium coffee because they want a rich flavor. Others like it light. They just need a hint of coffee just to keep it rolling. But then you have others who are much more interested in a very dark bean, that's oily, and they want the kick. They want that strong coffee, because they want to stay up at night for research or whatever. But many persons have different ways of liking their coffee. So, it's good for you, a potential coffee trader on a large scale, to know what you're selling, because your Page 3 of 26

4 audience will demand certain things from you and need to know. You need to know that so you can be able to talk positively, to be able to talk in an educated way and all of this. 0:09:31 S2: Now, South America, in Colombia, they're like the third top producing country in the world. Their coffee is described, it has a mellow acidity and a little caramel sweetness, and sometimes with this nutty undertone. So it's kind of... It gives you all of those hints when you're drinking it. And I'll give you a quick story: Once I went to a coffee roaster and he's... I was actually making some coffee for myself. I was actually at the factory and I was making some coffee for myself. And he came up to me and he's like, "Oh, you're American. You purchase a lot of coffee from us here," and I said, "Okay," and he said, "I see you're making a... " He said to me, "I see you're making some coffee here. Why are you using sugar?" And I was baffled because I thought if you're making coffee, that's what you're used to. You're accustomed to making your coffee and putting some sugar in there. He's like, "No, you're not able to tell. You're not able to get the real flavor of the coffee if you put the sugar in there." Some of them like their coffee with sugar, but he said, "Okay, I'm gonna make you a special pot of coffee." So he made the coffee, came back out and he's like, "Here you go. Have this." 0:10:38 S2: When I was drinking that coffee, I actually appreciated what he was saying. You started to taste the chocolate and the caramel and the nut, and you're like, "Wow! That was an experience like nothing else". Ever since that day, I probably don't use sugar in the coffee anymore, because I had no idea. You learn these things along the way, but I had no idea, zero idea, that the coffee would bring out all of these different flavors. And they go through a special process that they call "cupping", and cupping is where it tells you where the coffee's from. A connoisseur can tell you that, "Okay, this is a Colombian because of the flavor that is has, the hints of this, hints of that." They can pretty much give you a good idea where that coffee comes from. So, Colombia, being the third top producing country in the world, it's kind of that sweet and medium-bodied coffee, and it's most easily recognized by someone in US or Canada. They know that, "Oh, this is Colombian coffee." And you have popular coffee, like Folgers is a Brazilian coffee. If you ever drink Folgers, you'd know,"oh, this is the Folgers' taste," because of the flavor, because of that profile that it has. 0:11:50 S2: Now, the Brazilian coffee, Brazil is a number one producer in the world. They have the largest area. They produce the most coffee in the world. It's more of a peanut yet heavy-bodied taste, and their beans are usually used in espresso. Espresso is that darker coffee. What is interesting about this kind of coffee is that taste usually lingers on the palate. So you know you have some coffee, you'll drink it and it's fine. You can pretty much cleanse your palate real quickly, but with this kind of coffee from Brazil, the espresso kind of coffee, it lingers on the palate. Now, coffee from another continent, let's jump over to Ethiopia. They have different processes in Ethiopia when they're trying to harvest their coffee. So, it's the natural, it's heavy, fruity and wine-like, and then you'll have a washed coffee that has more floral or tea-like flavor. So, there are different hints of coffee. The connoisseurs, as I said, they can tell you these things right off the bat, "This is exactly where this coffee is from." Page 4 of 26

5 0:12:52 S2: Just educating you, guys, giving you guys a little information of where coffee is from, and what kind of flavor you're to expect from different regions is something that is gonna serve you very well, especially when you're going into like the Coffee Fest and you're talking to all these guys who are coming from all over the world. When you talk to someone in their coffee language, I can tell you, it makes a big difference to close that sale. I can tell you, they will just tell right off the bat, "Oh this guy is new to the coffee. He doesn't know too much." But once you could talk at least something, like, "What kind of beans... Are those arabica beans? Are those robusta beans?" They know that you know what you're asking about, so it's a totally different conversation. 0:13:31 S2: Another coffee that you may have heard of is the Indonesian Sumatra coffee. These take the dark roasting well. And we're gonna be showing you the beans from before. These take the dark roasting very well, so they're very smokier. They have like a toasted flavor. So persons love that kick to their coffee. They want the strong coffee to keep them up. They're usually gonna be, "Okay, let me get some of that Sumatra." So, it's kind of... It gives you that unsweetened cocoa, kind of flavor. So, it's great to know these coffee profiles. Again, this is gonna be in a PDF format. You can come back through here, look at all of this information. 0:14:11 S2: Now, we go to acidity levels. Now, what our research shows is, anything between 5 and 7 are acceptable, the acidity of the coffee. Now, coffee, there are different flavors indicating that some had a darker roast. And if you look on this chart that we have over here, it gives you a kind of indication of what the acidity level is, so if it's a ph 5, it's kind of black coffee, the ph 7, pure water. You have different levels of acidity here, on this chart, and that's the same with the coffee. There are different levels, and the regular that we usually work with is between 5 and 7. Those are acceptable levels of acidity to work within. So the darker roasted coffee will have less acidity. The medium roast is right where you want it to be, that 5 to 7 range, and then you have the lighter roast. 0:15:06 S2: Now, if the coffee beans are harvested too early, it may have higher acidity, and these... When you go to a cupping session like with those baristas, they can tell you... I mean, I sat there one day and I brought some coffee beans from Hawaii. And I gave it to the roaster, and he was able to just brew it, and he could tell you right away, "Oh this coffee, this didn't get to the perfect ripeness." I'm like, "Wow! How could they tell that?" But they're passionate about coffee. And you know one thing that he said to me, and I'm passing that on to you, "You have to love coffee to continue doing coffee." It's like, it's a business. When you get into it, you start to love it. The more you start to get into it, the more you love coffee. Because it's just a wonderful product to trade, because people have to consume it every single day. It's just that easy. 0:15:55 S2: Moving on to our next slide, let's look at the different roasts. Now, we have the roast here on the right, you kind of see the grinds, and you notice this one's a little darker, and this one is lighter, and this one is kinda medium tones. They're different tones, but all of these are really medium-roasted. Now what are the characteristics of a light roast? Now the light roast, they'll be lighter in color. There'll be no oils on the bean. And again, it is good to know what other names they are referenced by, so for a light Page 5 of 26

6 roast, if you're going to Target or Kmart to pick up coffee, and you see something that says "Light City", "Half City", "Cinnamon", "New England", those terms are referring to light-roasted coffee, so that's just another terminology for light-roasted coffee. 0:16:44 S2: Now when you get to the medium roast, they are medium brown in color, and has that flavor, that's where you get the real flavor of the coffee, in the medium roast, to get that flavor. It's non-oily and it's preferred in the US. That's usually the most popular grind that you're gonna find, medium-roasted coffee. Most people prefer medium-roasted. You will have those who are like, "Hey do you have a dark roast that we can get?" But for the most part, when you're trading coffee, when you're selling coffee, medium-roasted coffee is going to be the one that works best for you. And they are referred to as "Breakfast Blend", "City", "American", so that reference again, will let you know, "Oh they're referring to medium-roasted coffee." 0:17:29 S2: So again, different terminology that they use when referring to different kinds of coffee, and if you know these, it just helps you in that conversation, "Oh, we have a Half City roast." "What's that?" You don't want to be puzzled. You want to go, "Oh, you mean a light roast? Okay." So there you go. But as I just mentioned, mediumroasted coffee is the one that is mostly consumed in the US. That's what we've experienced and that's what this research has shown. Now we get into a hybrid kind... A medium roast, a medium-dark roast. It has a rich, dark color with some oil and slight bitter aftertaste. That's what's you refer to as the "City". 0:18:11 S1: And then you have the dark roast. Once you get into the dark roast, when you take the beans up, you can just see that it's oily. It has a oily external to it. And what's the biggest characteristic of the dark roast is that bitter aftertaste. If you went to Starbucks and you get a cup of coffee and it has that bitter aftertaste, maybe it's just a regular dark roast, then you know, "Okay, this is a dark roasted coffee." That lighter or medium roast will give you the flavor, the dark roast gives you that bitter aftertaste and also gives you that kick. Other names that dark roast coffee is referred to, it will be "High", "Continental", "Espresso", "European", "New Orleans", "Italian", or "French". These are just other names that the dark roast coffee is known as. 0:19:07 S2: Now, let us talk about the two kinds of beans that are most popularly consumed, the robusta and the arabica. The caffeine content in the robusta bean is about 2.7%. It kind of tastes burnt or rubbery. The green beans are usually about half the price of the arabica, because what we see is, robusta makes up about 25% of the coffee cultivation. It's more commonly found in instant grind. It's one that you just need the instant, your water, add some sugar, and you're ready to go. That's what we refer to as instant coffee. The others, we need to use that drip method, or use it in... Maybe you have a Keurig or a pot that you make it with. So, robusta is easier to tend to and more resistant to insect, due to high acidity. So that's some of the major characteristics of the robusta. 0:20:10 S2: Now we jump over to the most popular type of bean cultivated throughout the world, and that's the arabica. The caffeine content is about 1.5. It has twice the sugar, and acid content is between 5 to 5.8%, but the big thing is right here, it's 75% of coffee Page 6 of 26

7 cultivation. 75% of coffee around the world is in the form of arabica coffee. So, these are just the two types of coffee and how much is produced worldwide. Alright guys, here is a good picture of both of the beans that we just spoke about. Remember, the arabica is 75% of the world's coffee population, and then the robusta is 25%. If you look at the beans, you can see that this one, the arabica is larger than robusta. So, the bean shape and size tells you what kind of bean it is. And these are just good things to know, good little tips to know, because as I said, if you're interested and you're coming to the Coffee Fest, this will be great when you're actually seeing the beans live. You know what you're selling. It makes a ton of difference. 0:21:25 S2: Now, I gave some homework to go out to different stores and look for products, maybe your Target, your Publix, your Kroger, whatever stores you're in, and also if you're not from the US, look for coffee in your local area. I can tell you from an experience that purchasing coffee that's local to your area is something that... It's amazing because you are usually going to not have that much competition. You're not going to have a lot of competition, because you are unique. You're in Indonesia, and you're in Hawaii. You're not going to have that much competition, 'cause people like easy. They don't like to do a lot of research going out there. And I always encourage you, think outside of what everybody else is doing. Try to get something from somewhere remote in the world that maybe you just tapped into a wonderful source, and you're able to buy this, over and over and over again. 0:22:24 S2: But apart from that, just to get your feet running, get wet, I challenge you guys to go out to the local stores and just look at different kinds of coffee that you could purchase. So hopefully, you guys went there. And what I'm gonna do now is, Sara was in Florida last week and I said, "Just go out and hit the stores, and see what you can find," 'cause I wanted to show first is that, this is not something that we talk about, this is something that we do weekly. It's not something that we just say, "Hey, we talked about this on a webinar." No, this is something that we do, that we're passionate about. So, we're showing you that this can be done. Don't think that, "Oh, I can't do this," or "I'm never gonna get this done." You can do it. Now, last week, Sara shopped at Target, and the picture here, it shows the actual coffee that she bought. 0:23:12 S2: So you guys, you're gonna have this. You could zoom up. You could see... I don't know all the different ones. But we're showing actual products. We're pulling the curtain back. We're not hiding anything. We're showing you what we bought, and I'm gonna walk this through. Now, a lot of times, persons buy the K-Cups. I can see one in here that says, I think "Island Coconut", and it's a Green Mountain Island Coconut. That's a very popular one. Again, don't say, "Oh, Barrington says I should go out and buy Island Coconut." Do your research. Always check the listing. Do your research. Understand why we buy it or why we treat it, and how we treat it, then that's gonna make the biggest difference. You don't care 100-person now under a single listing. As we spoke about in our last webinar, you are still able to capitalize on it. 0:23:57 S2: Now, nugget number one: A lot of persons said, "Hey, Barrington, you spoke about Gevalia, about what Gevalia did. I went out, I got some Gevalia, and guess what? It Page 7 of 26

8 says 'restricted.'" Write this down. Usually, it's restricted on the single listing. The multipacks are usually good to go. I'm not sure how that works, but Sara was there last week, scanned, we lost [0:24:24] some of it, the single packs, restricted. You got on the multi-pack, not restricted. You can send it in, 'cause it's a totally different listing. I think Amazon's just trying to clamp down on the popular selling ones, and like, "Okay, we wanna monopolize this. We wanna take over this." But you jump on that multi-pack listing, and you are able to sell the same coffee. It already has all the traction of a popular coffee. A lot of people are looking for it. You go on the multi-pack listing now, people are like, "Wow, I can save $2 on a multi-pack or I could save a $1.50, I'm gonna buy the multi-pack." That's how it works. 0:24:57 S2: Now, this is the box you create. It's a multi-pack, but let's just break down some numbers. Let's just give you guys some actual numbers and what we do. And as I said, I'm gonna go live on screen and show you guys what we do, but I'm gonna give you some actual numbers. The cost price is $21.99 over a two-pack, and the selling prices range between $39 and $ The total units purchased was about 40 units, and the shipping cost into Amazon inbound shipping was about $9, so $9 inbound shipping costs. So our total cost was about $418 and we used that Target 5% card. So if you're in the US, you wanna take advantage of that, using your Target 5% card, 'cause that's 5% off of whatever you're gonna pay. So, we worked it out and the potential profit on that is $200. Now, for a shopping trip, and you have a potential to make $200, you have a person like, "Oh well that's not 20,000." Well you start somewhere and you keep it rolling, and this is just one aspect of how we source. 0:26:05 S2: We don't do a lot of the retail ARBA. This is just one aspect of how we source, because we're not living in the US. But you guys who are living... You're there. You can go out to the stores. This is something that can be done. You just have to take action on it, jump up there and look at these products, scan. If the single-pack listing is very competitive, look at creating a two-pack or three-pack or a six-pack. I can't harp on this enough, because this is a strategy that we use all the time and it works perfectly for us. So this is pretty much just a break down of a shopping trip that she did. And, okay $200. Okay, she made the cost of her ticket to fly to Florida. Okay, so that's work, business. The ticket was $200. She made a profit of $200 on these, and potential profit, 'cause these are just sent in. But we've done the research and seen, "Okay, that is possible." 0:27:02 S2: I don't know if you guys see in the back there, she has some Lego's. She just couldn't go in the store, and she said, "Another deal," but obviously, you see way more coffee. But there you go, right there, there's a little Lego. So, you see another deal on something else, you pick that up. But, as we're focused on coffee selling on this webinar, that's what we're gonna be talking about. Now, what we always do is, we strive to look at the competition, because sometimes you see a coffee, you're wondering, "I'm wondering if this guy's really selling anything. I wonder if he's making a profit." A lot of times we kinda get bogged down with that. "How can this guy make money selling for that? I don't know what he's doing." So, what we do is, we check the competition. We kind of go Page 8 of 26

9 through the listings. We have just research time, where we'll go through the listings, we see what this guy is selling for, we're gonna just crunch the numbers on it. 0:27:57 S2: So, this is what we're doing here. There is a listing, "Koffee Kult Coffee Beans." It's dark-roasted, and we're here. So, what we're gonna do now, is this guy has a two-pound pack. It's selling for $ We look at the different things, the cinnamon, bright, long finish, heavy body, smooth, so it gives you the profile. So, as I see here, these are called "Cupping Notes". It gives you the profile. So your customer, when they hit this page and they're like, "Oh yeah, I'm looking for smooth. I'm looking for cinnamon. Alright, yeah. This is the one I want." So, that tells them right away. So this is an example of a good bullet point to the listing. So what we do is like, "Let's see how much this guy's selling. Let's see if he's really selling anything." Well, obviously, the reviews, 365 shows that activity is going on, great rank on it, too. So what we do, is we click on the "Add to Cart" button, and this is a little tip, or a little nugget. Some people know it, some persons don't know it. This is recorded, so you'll be able to see this information. 0:28:57 S2: So we click on the "Add to Cart" button, and let's walk through this flow and see what happens. Now, in the "Add to Cart" button, we edit the quantity, and we remove the one that's there and we change that to 999. Why do we change that to 999? Well, because that's the maximum figure Amazon will allow you to enter into the box. And what we're trying to do here, we're trying to see, what's the quantity that he has right now? How many does he have right now? When we click on "Update" and we scroll to the next screen, Amazon is gonna present to us the actual quantity that he has left in stock. So we just added the 999 to the quantity, then we clicked on "okay". So we jumped across to here and said, "Oh wow, this seller only has 262 of these available." To see if more are available from another seller, go to the product detail page. This guy is the only one selling this coffee. So, this tells that, "Wow, this guy has 262." 0:29:57 S2: If we're really doing the research, if we're really checking on competition, what we want to do is create a spreadsheet, and you create spreadsheet. You put in name of the product, ASIN or UPC, whatever you're using, and kind of just put your dates in there. You can do it manually. You can also do it another way, but if you're just doing one or two or three SKUs, you don't have to really get into all that facts, you can just do it in Excel. So, you put name of the product. You put in product description or whatever. You put in the UPC or the SKU, and then you know that today is April 20th. Okay, it's April 20th, and we put "262." We know that he has this today. Tomorrow, you check him again, doing the same thing. You go through and you check it again, and then you'll see, "Wow, this guy has 216 left. That means he's selling a lot, or he has only 202 left." So you know, "Wow, he sold 60 yesterday." 0:30:54 S2: You run that over a week, over a five-day or a week per period, and kinda see if he's selling an average 40 a day, an average 40 pack a day, then that tells you, "This is a good brand. We could go after something similar, or we could go after the same brand. Can I get a wholesale dealer?" You know what? You're checking to see what the competition is, that gives you good insight as to, "Are people buying?" You also have other software out there that you could purchase. I think it's FBA Toolkit and Sales Rank, Page 9 of 26

10 and they do the same thing, but if you're just doing a one or two or three, you can use an Excel and you could check that, so this can be done very, very easily. 0:31:33 S2: Now, what I wanted to do, let me just break here and bring the browser up, and there we go. We're on Amazon. I told you guys today, we're gonna do Livestock. We're on Amazon. And, the process that I did awhile ago, it's very simple. I scrolled through. I'm looking for... Okay, I found this coffee here. I'm looking at the coffee, and I say, "Okay, it's... " The things that we look for... Let's go through this again. We look at the reviews. There's four and a half stars. We had 366 customer reviews, so far so good, great thing. So we need to figure out what's going on with this. It's Colombia, Guatemala, and Sumatra. So, he's talking about regions and he's talking about, as we mentioned before, Sumatra. So you see, all these things that we just spoke about before, are in his listing, so he's targeting his audience. He's telling persons "Listen, this is the profile of the coffee. This is the region that the coffee is grown." So, those are things that persons look for, "I wanna know, where are these beans from?" And that's why they buy coffee. 0:32:47 S2: Now, what we did is the "Add to Cart" and "Edit cart". So, perfect! Guess what? That's perfect. So in the time that I added it in there, just grabbed this image and threw it in there, see? It's gone down to 257 now. So this has dropped to 257. So automatically we were like, "Wow, this is selling." One thing that you need to remember, please remember, is delete the quantity from your cart, because you don't wanna go through and you're purchasing something else off Amazon and then you go "click", and then you end up with a bill for 6,417. You're like, wow, you just purchased all this guy's coffee. Unless you have a way to sell it back, you don't want to do that. So once you're done, just go here and click "delete". So, you just deleted that, so now you're down and you're going to go again. 0:33:49 S2: What I wanted to also show you on this was the... A lot of persons were talking about the labeling, and "best before", and what to buy in terms of expiry date. So I just wanted to look... Show you guys on the pictures here. So we see, usually they have a "roasted date", so it tells you, "This was roasted March 16, And they're gonna give you the "best by", and it's gonna be, "Best by March 15, 2016." So, that tells you, "Oh, this has a year." Now otherwise, if you have only six months then you will know, "Oh, I only have six months to have this coffee out there." So that tells you a lot about what kind of coffee you purchased and how you get this thing going. 0:34:42 S2: Now, another thing that's very interesting here is where the beans are manufactured. There you go. The actual address is there. Koffee Kult Corp, 6205 Buchanan Street, Hollywood, Florida This is a guy doing private label. But it just gives you great information on things that we look for when we go on a coffee listing. And also, I would've struck down and say, "Okay, let me see what the sales rank is for this product." Now that's 615. You'll know this is a flyer. 615 sales rank, you're selling maybe 40 an hour. This is... He obviously has to have some stuff going back. So, this is great when you're thinking about on going private label or doing anything else like that, just to look at examples, checking your competition, looking at the examples, so you can learn from the examples and move forward. Page 10 of 26

11 0:35:43 S2: Now we're gonna jump back to our slide show. Wholesaling coffee: Once you found a brand or a blend that you like, the next step is, you've bought some in the stores. It may be a nice brand. You've bought some in the stores and you sent them into Amazon, and you bought 10 first to test it, or five to test it, then you sent it to Amazon and they sold, and you're like, "Wow. I wonder if this is a fluke. Let me try again." So you buy six more. You buy a dozen the next time. You're doubling up, and you send in. They all sold. How we think is the next step is, we want to get right to that wholesale. We wanna figure out, who is the distributor. We wanna figure this out, because it's selling. We don't need to know that. We have already tested. We know it's now selling. So the next step is looking at, "Where can I find this wholesaler? How can I get access to this wholesaler, because I need to buy more?" 0:36:34 S2: So, what we're gonna do now is, we're gonna show you live, a method that we call "reverse engineering", and it's pretty simple. We just look at it and say, Amazon gives you all the data. They give you everything. You don't really need to go and reinvent the wheel. So all you have to do is just go in there and look for the brand, find the wholesaler. It's right there in plain sight. Let's do it. So, we're gonna jump back on Amazon. And for this, we're going to be... We're just doing a regular search. I'm doing a regular search. I'm searching for coffee. That's it. I just searched for coffee. So I'm on the main page and I'm scrolling through. I'm like, "Oh, $7.76. I don't like that." Obviously it's a Prime Pantry option store. You're probably not gonna even be able to sell them on that particular one, because that's Amazon's thing, Prime Pantry. So, I'm usually interested in products that are a little higher on the scale, $15.99, $19.99 up, and higher. So, we're scrolling through, scrolling through, scrolling through. We're looking, we're looking. Yeah, we looked at that one. We liked it. We look at Gevalia. Okay, but see? $6.78, this is a little bit too low for me, because when Amazon takes the fees out, you're not gonna be left with anything. 0:37:58 S2: So I'm scrolling through here, scrolling through here, and this one catches my attention. As I said, $14.99 up, it catches my attention. So, this is Cafe Don Pablo, and it's gourmet coffee, two pound... Wow! Two pounds of coffee for $ Remember, your target audience, your budget buyers, like, "Man, this is two pounds for $ I'm gonna jump on this, 'cause this will be cool." So, I jumped in here and I'm looking at it. There are different flavors. Remember we talked about the different flavors? So here, it's Columbian Supremo and Subtle Earth Organic. Now, what I look at is, I love the packaging. It's USDA Organic, so that's one of the reasons why I'm loving this product. It's USDA. They show you the cherries. So they're appealing to that target audience and like, wow. You would just love to get a sip of this coffee. Look at the cherries. Look at the farms. So this bag is really nice, and then it has this Subtle title stuff, "Organic Coffee." So, a lot of persons going for organic. 0:39:04 S2: Now, we're jumping in. We're trying to find a wholesaler. So what do we do? Okay, we're here. We know that this is sold by Cafe Don Pablo. So, we're gonna just go click here, and we already know that it's Cafe Don Pablo, so this is the actual manufacturer. We know, so okay, we're done with that. We know it's Cafe Don Pablo. Page 11 of 26

12 The next thing is, let's do a quick Google search. We go here. Cafe Don Pablo, space, Wholesale. That's it. Cafe Don Pablo, put a space in there, and say "wholesale". All of this information comes back. And remember guys, this is for people who take action. This is for people who are not complacent and just wanna say, "Hey, I don't see anything in the store, and I'm giving up on this." No. We wanna drill deeper. We wanna go deeper into it. So this is "Cafe Don Pablo, wholesale". So you jump on here. I need to try and figure out, "Okay, this is Cafe Don... " 0:40:04 S2: Now, look at this. They have wholesale service, and look at this tab, "private label". They also have "private label" option available. So here we see guides. You have the wholesale service. You have the private label service. These guys are... They're giving everything before you guys. So, they give you all the different blends that they have, Brazil, Guatemala, Artisan, Gustavo, and walking through this example right now guys, I'm hoping that you take action. You look at this, you're like, "Wow! I could jump in on here and contact these guys, 'cause hey, they have all different kinds of coffee, and they have a private label service." Now, we're looking for wholesale, "For more information on wholesale opportunities and pricing, contact Rocco, National Sales Manager," here is the address. We're ready to rock and roll. 0:40:59 S2: If you are comfortable talking to somebody on the phone, no problem. The number is right there, it's You can go ahead and reach out. You can call them. You can make things happen by just getting that together and send it over. But you might ask the next question, "So, Barrington, where are we gonna get information?" Coming up. We have you covered. We have a template that you guys can edit, fix, use to how you want it, but I just wanted to show you how to get down into, once you've found a coffee, it's working. You've bought some in your local store, you start to see it working, either you turn it back, as I mentioned earlier, and showed you earlier, or you just do a Google search for "name of the brand" and "wholesale". That's how we make it work. 0:41:53 S2: Alright. So, what we're doing here is, we're now going back to our presentation, going back to our presentation here. Alright, template. Now, you guys, that will be the next question. So here is a template that we have set up, and it's pretty much just a wholesale template for you guys, if you are trying to make contact with the wholesaler, nothing fancy. It's really just a template. You can tweak it. You can fix it to how you want it. You don't have to put the same thing in there, but it's just an idea of what you can do with this information. Now, just, "Hi." You can personalize if you wanted, name of the person. If you saw the person's name there, you can personalize, so they know you're talking to somebody directly. And, our thing is, "We were browsing online, saw your products," and you can specify the name so they know we looked at the Sumatran, the Cafe Don Pueblo with the medium blend or the dark roast. You specify, so they know, "Oh wow, this guy knows what he's... He's actually after something specific," and "We're eagerly interested in finding out how we can open a wholesale account with your company." Page 12 of 26

13 0:43:13 S2: You give them all your contact information. He's like, "But Barrington, I don't have a registered business." You could give them your DBA. You're not gonna say, "And my Amazon store name is... " Whatever you trade on, on the Amazon platform, whatever your store name is on Amazon, you could say that's your store name. You give the address, city, state, telephone number. If you already have your resale number, you can get that information, and it's very easy to apply for that online. You go to your state and apply for a resale certificate, or if you're just "trading as" or "doing business as" with your social security, you can get this resale number very, very easily. You do the sign up, thanks, name, and your company. This is a basic template, and this is a template that you can use to contact a wholesaler. 0:43:57 S2: Once they get back to you, you start to ask questions in terms of, "Are there minimum order quantities that we have to purchase?" These are things that they look for, and then once you start... Get this information. Get the conversation rolling. You need help, you can ask for help in the group. Get the conversation rolling. Build the relationships. Guys, I cannot stress this point enough, build relationships. When you start to build relationships, you're gonna now jump into questions like, "So, what are your best sellers?" So, you thought you had the winner, and now this guy's like, "Oh no, our Sumatran is our best seller." They're selling 10 to one of the wonder product you're asking about, insight again. Right? Insight into their business and they know it best and they can tell you. 0:44:45 S2: Now, once you've gotten to the wholesale stage, you start to sell at wholesale, and you've figured out that, "Wow," your next step is either gonna be private label or, "Can I get an exclusive on selling this particular product?" Maybe it's something that you've found offline at a brick and mortar store. You've contacted them because you've started to sell on Amazon. It's started selling well for you. There's no competition on there yet. It's a good time to reach out for an exclusive agreement. Here's an example of a letter, exclusive letter, that was written by one of our manufacturers, and we sent this to Amazon. We had this on file with Amazon. They wrote, "Dear Amazon, This is to certify that, whatever your store name is, Amazon Seller X, at 345 Coffee Avenue, Suite C76, Coffee Farm, New Jersey, is the sole distributor of our coffee, namely... " And they will name the different coffees that you are going to be the sole distributor for: The Boston medium roast Brazilian beans, Arabica Dark Roast Hawaiian Blend beans, Typica, Organic Light Roast beans, whatever it is. "Any other individuals or companies carrying our brand is not authorized to do so, and as such, we ask that you avoid handling the above mentioned products from anyone else except Amazon Seller X," which is your company. They sign off, "Yours sincerely, Wholesale Coffee Beans Direct." 0:46:11 S2: Now, this is an example. Sometimes you've built such a wonderful relationship with your vendors, and they'll be thinking, "Exclusive? We don't know how to do that." You can use this. You can use this template as an example of what there to write. And then all they have to do is just have this on their letterhead, and you send this into Amazon. Also if they have a trademark, and then they can get you copies of trademark to get to Amazon, that way Amazon knows, "Yes, these guys are the authorized... They own a trademark on the coffee or whatever, and they are saying, yeah, Page 13 of 26

14 this seller is the only one that should sell their products." Not that you're not gonna find people coming on there and listing on your products and all that, but usually, with this exclusive letter, we've been able to get persons off of our listing, because we are authorized to sell as an exclusive distributor on Amazon. 0:47:02 S2: And that is the reward, I tell you, for hard work. It's either that you're gonna go private label or you're gonna get an exclusive. Some persons have no wish or desire to trade online, they just want to make the best coffee beans possible. Those are the ones that you want to appeal to. Those are people you want to talk to, because that is when you really get a wonderful product, 100% of the buy back and you're the only guy selling it, it's a awesome, awesome feeling. Now, from time to time, we are out there. We're doing our research. We're talking to our friends in the coffee community, and we get wholesale lists of different types of coffee from all over the world. Obviously, there's no way that we can sell every single kind of coffee, every single kind of blend, roast, medium beans. We can't do everything. So what we'll do is, sometimes, we get some of these lists from our partners and we're gonna put these lists in the group, and you guys can use the strategies that we've just taught, contact these vendors, start building relationships, start getting some sample orders in, and then do the work to get the stock going and get listed to Amazon, and then reach out for an exclusive order. 0:48:14 S1: Maybe a lot of persons are gonna be contacting that same vendor, they're like, "Wow, we have a ton of people contacting us. I wonder what's going on." But sometimes, it's all about particular SKUs. Remember, you have a 16 ounce bean, a 12 ounce bean, a 8 ounce bean, a 4 ounce bean, then you have a 16 ounce grown. So here is different SKUs. You can go in there. You can multi-pack. There are various ways that you can carry the same items. So don't be overwhelmed, or maybe sometimes, they may not get back to you because they have a wave of people contacting them, so we're gonna pull some of them in the files section in the group, and that's homework. That's stuff that you can do. You can go out, you can contact these guys and get information, and get these things rolling. 0:48:59 S2: You can check periodically for these lists of vendors and the strategies that we have discussed, as I mentioned, you can use them. And this is our disclaimer for this: You have to do your research before making purchases. This is the disclaimer: We get the list. We can't purchase everything, but we may put some of these wholesale lists in the group, but you must do your research before making purchases. You have to do your due diligence. We will just put them in there, if we get someone that's overflow of a spill, but you guys have to do your research. 0:49:32 S2: We're up on our questions and answers now, and Sara always promised that she's gonna get the winner one coffee that we've actually bought before or we're still selling, and that's gonna go out to the person who answered this question, so Nathan, maybe you are able to see who brings this question or who's able to answer this question first. What are the two types of coffee beans that we discussed tonight, and which bean is most preferred? So, the first person to answer that will win... Page 14 of 26

15 0:50:04 S1: Man, you didn't even have the question out. You weren't even finished with the question, and Shelly, you are impressive. Shelly, you are impressive. So, you are the lucky winner who will get that international course that we talked about earlier. Shelly, you get that at no cost. That's what you win. I'll find you on Facebook and PM you the link. 0:50:34 S2: Shelly's good today. Nice. I think Shelly was in there. So, if we have our questions Nathan let's get to our questions. Let's get things rolling. 0:50:53 S1: We've had a lot of great questions so far. I've been here doing my best to help people with their questions about all things related to this business, and we invite that. There's no such thing as a stupid question, only one that doesn't get answered and one that is not asked. So, a good question, and there are questions about, "Do I need a reseller license to sell coffee or to sell wholesalers?" So, what would you say to that Barrington. 0:51:25 S2: It's not a definite requirement. Some vendors will want to say, "Hey, okay, you have a resell license, okay we can get you in there," but it's not... If you're gonna go out and you're gonna buy smaller quantities, then you can just buy and resell on Amazon, but for us, with coffee once you find a right one, people are gonna be ordering it a lot. So it'd be good if you can just do the extra work, get the resell license, it's not hard, and then you are able to buy in the pallet load, or the case load, and remember that doesn't happen overnight. You start buying one case here, two case here, then it goes up to five cases, 10 cases. So, it's just a gradual progression. And you have to look at your business and see if you want to take your business to the next level or your comfortable where your business is right now. 0:52:13 S1: Yeah, in regards to Tax ID numbers, yeah, any wholesale account, generally, is going to request that you have to set up a wholesale account. They wanna see that you have a Tax ID number, or a reseller certificate. And this is all dependent upon your state. Some states require to have a Tax ID number and a reseller certificate. Some states only have a reseller certificate. Some states, all you need is a Tax ID number, but in general, all states will have the reseller certificate, and within... These are good things to have in your business, but these types of questions, in regards to reseller certificate, Tax ID numbers, how to get those things, go talk to a CPA. Barrington, he's from Jamaica. He's not even from the US, and he understands a lot about it. He has a US business set up, and a US bank account, but in regards to knowing all about taxes, and... Do you do all your own taxes or do you have a CPA do all that stuff for you? 0:53:11 S2: CPA. We have to hire somebody outsource... 0:53:13 S1: Did they set up a corporation for you? 0:53:16 S2: Yeah, they did everything, did everything. Sometimes... [overlapping conversation] Page 15 of 26