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    6 Replies Latest reply on May 8, 2008 6:25 PM by puzzleman

    Need Business Idea Feedback

    TRBP08 Newbie
      A good friend of mine is a graphic designer. We have recently decided
      to try to do some business together; specifically, I would prospect new
      business for him. He makes logos for businesses, and then handles the
      ordering of prints of the menus or whatever else they need their logo
      on.

      While I was in a local coffee shop several months ago, I looked at the
      cup and suddenly "realized" that unless you go to Starbucks and Dunkin
      Donuts (around my hood anyway), when you get coffee at a bagel shop or
      a local coffee shop the logo is some generic thing that they order
      online. Some have squiggly lines on them or red and grey spikes.

      Isn't this wasted space? Shouldn't businesses want to put their logo on
      it? My first idea was to target the owners of the coffee shops and ask
      if they would like a free logo and put the logo on their coffee cups,
      which we would take over on the supply side. The catch for the owners
      of the coffee shop is that they will now pay a little more per cup than
      they did before, but they are getting advertising and branding as
      people walk around drinking from that cup.

      Now, if they don't go for it because they don't want to pay more per
      cup, then there is plan B. The logo doesn't have to be of the shop
      selling the coffee. The logo can be of another business in the area.
      Think of it: When you are drinking your coffee over the course of the
      morning, you will stare at that logo every time you take a sip.
      Wouldn't businesses want to advertise on the cups? In this scenario, we
      would actually be able to offer the coffee shop owners a discount on
      the price they currently pay for their generic cups, because the cups
      were being subsidized by the 3rd party business. We could have
      something written at the top that says "This Delicious Cup of Coffee Is
      Brought to You By" and then place the logo right below.

      We, the issuers of the free logo and the "middleman" in their coffee
      cup transactions, will naturally make money every they order new cups,
      which they will on a regular basis.

      What do you think about this? What are the holes in this that I am not thinking of.
        • Re: Need Business Idea Feedback
          LUCKIEST Guide
          Need Business Idea Feedback, Welcome to this web site.
          It is the American dream to go into business. Sounds exciting.
          Where are you located?? What part of the country??

          Two suggestions. One) Develop a Business and Marketing Plan, which includes Cash Flow.

          Two) Contact SCORE. SCORE helps people in business FREE.

          Good luck, LUCKIEST

          • Re: Need Business Idea Feedback
            Lighthouse24 Ranger

            The problem with having a "regular" local coffee shop pay for imprinted cups is cost. They're probably paying about a nickel per unit for a blank or generic disposable cup with a lid now. They can buy in low quantities, and restock immediately when they are about to run out. I'm guessing they'd pay at least 30 cents per unit for a custom imprinted disposable cup. Reordering would require a couple of weeks of lead time, and they'd have to buy in higher quantities (meaning a lot more cash would be going out in advance of sales, and there'd be more cups to store until they were used). In the end, I doubt if it would increase revenues at all (sales could even decrease if they had to raise prices).

            I think Plan B has potential.

             


            Good luck!
            • Re: Need Business Idea Feedback
              EL_DollarShop Adventurer
              Great Idea! But.....
              Think about it? How many times have you picked up a pen that had a logo on it, and never read what it said, just wrote what ever you needed and put the pen away. Though there was a pen a chiropractor gave me once that was bent and twisted to look like an out of alignment spine.
              Now I'm not saying your idea doesn't have potential, but if you google "custom logo's," boy your in for a surprise there!

              You might want to first gather your thoughts, write them down, figure out the in's and out's of such a venture, write a biz plan after good research, then figure out what you can do differently than your competition that will make you stand out from the crowd.
              Remember also that you will to manufacture these coffee cups, or pay someone to do it for you. maybe you can sub out that part while you and your freind create the designs, and do the leg work in selling the idea to coffee shops? Heck there are always possibilities if you dream.

              Good luck,
              Michael
              • Re: Need Business Idea Feedback
                FCPainter Adventurer
                Personally, I think it's a great idea.
                • Re: Need Business Idea Feedback
                  puzzleman Tracker

                  In my opinion, if I was a coffee shop owner, why would I want to buy cups with someone else's logo on it? Why should I be advertising for someone else and I don't get a benefit out of it?

                  I like your idea of putting someone else's logo on the cup but I think that on one side of the cup put the logo of the coffee shop and the other one on the other side of the cup. The second logo can help defray some of the cost of the cup for the coffee shop owner. If you take this idea a little farther, you could put two secondary logos on the cup, thereby reducing cost for the shop and increasing revenue for you. There should be enough room for a total of 3 logos,

                  Jim
                  • Re: Need Business Idea Feedback
                    work4home Newbie
                    Great idea. So far, you've received some real good replies, and why do you think Starbucks and Dunkin are doing so well? Is their coffee that much better than others? What they did was look at what others were doing, thought "outside the box", and offered something that their then future competitors weren't doing.

                    Back to the logo business idea.

                    How about this option? If the coffee shop doesn't have a logo, why not...

                    1 ...offer to design one or two for free,
                    2 ...print the logo designs on two different cups and a cardboard wrap to go around the cups when you present the logos,
                    3 ...then ask them which option or options they like best?

                    Be honest with them and tell them that you are doing market research then ask if they would be willing to use *their *coffee cups or wraps or both to advertise *your *service. Small business owners really do enjoy helping other small business owners because they know the frustrations of starting up. In other words, give them "more bang for the buck." (Sound like Mr. Donald J. Trump? It should because that's where I got this statement.) Find out what they want.

                    Good luck.

                    Al