High prices, low margins? Here’s what you’re missing

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GROWTHCOFFEE MARKET

Matteo Borea

2/10/20253 min read

The only way to achieve significant profits? Selling products with significant margins.

But are you or your company capable of doing that? If simply raising prices were enough to generate profit, we'd all be millionaires.

But reality tells a different story:

even if your product is worth the price you set, if you don’t have the right positioning, sales won’t happen.

Why? Simple. Because customers don’t perceive the same value.

And here lies the real problem: a lack of clear positioning.

Too many entrepreneurs misunderstand this principle. They raise prices without a strategy, and when customers push back, they panic and slash them.

The result? A loss of credibility, a brand that seems unstable, and customer trust that crumbles.

Positioning is not improvised.

Positioning is what makes a product desirable beyond its functional qualities. It's the reason why people pay a premium for certain brands and not for others.

It's not about what you sell, but about how your audience perceives it.

The value customers assign to your brand is built through consistent actions: service, communication, and above all, TRUST.

You don’t become a premium brand overnight. You earn it. Every interaction your customers have with you reinforces or weakens your positioning.

It’s in how you communicate, how you handle issues, how you present your business. If you’ve always been seen as a budget-friendly brand, you can’t just decide one day to be premium because your costs have gone up.

Positioning is an identity, not a price tag.

Self-generated image on Ideogram.ai

Self-generated image on Ideogram.ai

And this is where the unexpected twist comes in.

Right now, something is happening that most entrepreneurs are overlooking.

The price of green coffee has reached historic highs. Arabica futures in New York have surpassed $9 per kg, while Robusta in London has approached $6. That’s an increase of over 100% in just one year.

And this is reshaping how people see coffee.

The price of green coffee has reached historic highs. Arabica futures in New York have surpassed $9 per kg, while Robusta in London has approached $6. That’s an increase of over 100% in just one year.

And this is reshaping how people see coffee.

Without realizing it, this crisis is doing something that many entrepreneurs have never been able to do:

it is positioning us as luxury businesses.

"For the first time, coffee is no longer seen as a cheap commodity but as something rare, valuable and exclusive."

This is an incredible opportunity to reposition your brand.

Of course, I’m not downplaying the challenges. I am fully aware of the difficulties our industry is facing: skyrocketing costs, shrinking margins, and the struggle to convey value to customers.

But precisely because of this, it is now crucial to act strategically.

We can’t just complain about rising costs. We need to turn this crisis into leverage for our business.

And how do we do that?

  • By proving our expertise, being transparent, and supporting our customers.

  • By building trust. This is the key to positioning.


More than ever, customers want to work with companies that are reliable, that communicate the value of their products effectively, and that don’t just hide behind unjustified price increases.

This is exactly what I am doing—offering value, working with transparency, helping my customers navigate this storm.

Those who do this today will have loyal customers tomorrow, customers who will row in the same direction rather than abandon ship.

This is a defining moment: either you build trust and strengthen your positioning, or you lose ground to those who have already understood how to take advantage of this transformation.