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Revolution
Reverse Engineering Value
All of us in Specialty Coffee agree that coffee producers are valuable, but we haven't agreed on how to assign that value, who assigns it, or how to convey it through the supply chain.
At Torque we believe that the way forward is to reverse engineer the coffee value equation & go from value received to price paid. Proportional Pricing means simply that the value of a coffee is relative to the value it generates for the roaster. Based on that premise, Torque applied a Proportional Pricing equation in which the producers receive 20% of the retail value of every bag of roasted coffee.
We call it Proportional Pricing©because it automatically adjusts to the price the bag of coffee is sold at. Proportional Pricing changes the value equation of the coffee supply chain. Instead of the commodity market deciding what a coffee farmer's coffee is worth, you the customer decide its value. Proportional Pricing means that a preset percentage of that value is due the coffee producer. You know the exact impact your purchase has on the coffee producer. No complex math, no 50 page reports, no long explanations, sob stories or strings attached. It's just the Producer's Portion.
Proportional Pricing for Farmer Equity
20% of the price of every coffee was pre-paid to Coffee Producers.
Shared Equity
The definition of economic equity is "To share in the increase in value."
By ensuring that coffee producers receive an equitable share of the full retail value of their coffee, Torque Coffees is helping to create a more just and sustainable coffee industry.
You get 100% amazing coffee. Producers get 20% of the Price.
Everyone shares value equity
All of the coffee producers we work with receive the same 20% equity in the full retail price of their coffee. Whether it's in a blend or a single origin we determine the retail price based solely on what the producer was paid.
The more the producer is paid the higher the retail price. The lower the retail price the lower the producers price. it's proportional which is why we call it Proportional Pricing. It's the same fixed 20% equity for every coffee so both you and the producer know exactly howe much of the value they received.
Reverse Engineering Value
All of us in Specialty Coffee agree that coffee producers are valuable, but we haven't agreed on how to assign that value, who assigns it, or how to convey it through the supply chain.
At Torque we believe that the way forward is to reverse engineer the coffee value equation & go from value received to price paid. Proportional Pricing means simply that the value of a coffee is relative to the value it generates for the roaster. Based on that premise, Torque applied a Proportional Pricing equation in which the producers receive 20% of the retail value of every bag of roasted coffee.
We call it Proportional Pricing© because it automatically adjusts to the price the bag of coffee is sold at. Proportional Pricing changes the value equation of the coffee supply chain. Instead of the commodity market deciding what a coffee farmer's coffee is worth, you the customer decide its value. Proportional Pricing means that a preset percentage of that value is due the coffee producer. You know the exact impact your purchase has on the coffee producer. No complex math, no 50 page reports, no long explanations, sob stories or strings attached. It's just the Producer's Portion.
