at Sat, 14 Feb 2004 13:42:24 GMT in <f78s20lkv0fh6s3do49g4gntbp2qeb2p3e@
4ax.com>, (Linus) wrote :

>The replies I've gotten have been wonderful. Especially Alex and
>Clay...Thank You!
>
>To be more specific, the business is going to be tied in with a Candy
>Bouquet service. The product mix that I am envisioning will be candy
>bouquets, fudge, chocolates, confections, greeting cards, and
>miscellaneous gift items.

Based on that premise, I think you may have more success with chocolate
confections that with the pure chocolate bars. If your main line is
"bouquets" of any form, I imagine most likely that these are primarily
going to be given as gifts. And the gift-giving dynamic is very different
from the personal-consumption one.

A chocolate bar is usually something bought for personal consumption rather
than as a gift, because it has less the image of a precious item denoting
affection and much more that of something to deliver visceral appeal.
Unless the buyer has a very specific recipient in mind, and knows their
tastes very well, they're not likely to buy a chocolate bar (in spite of
the Hershey's ad) because, well, receiving a chocolate bar as a gift
doesn't seem particularly "special" to most people. A box of chocolates is
much more traditional and usually more welcome.

In addition, you'll need to remember that gift buyers aren't as likely to
know much about the ins and outs of what they're buying. Most will be more
or less ignorant of the subtleties of fine chocolate. So, to a certain
extent, you'll either have to be prepared to educate them (either in person
or with promotional materials), or to focus your product mix around things
that *look* pretty. With no other way to judge, most people will go for the
nicest-looking product because in the end you have to decide somehow.

High-end chocolate bars generally sell best to the devoted chocoholics,
which means you can bring in a clientele, as opposed to the gift-giving
group who are rarely regular patrons unless you establish a clear
reputation for supplying absolutely the finest chocolates (or whatever) to
be had anywhere nearby. However, in order to attract that market, you'd
most likely need to shift your focus because a chocoholic isn't necessarily
going to suspect that he/she might find great chocolate bars in a store
specializing in candy bouquets.

....
>I don't know how much of a market there will be for high-end and above
>grade chocolate. While there isn't any local competition in that
>category, I imagine that the chocolate lovers like yourselves have
>favorite distributors or retailers who ship to you cheaper than what I
>could sell it for from a retail business.

Price isn't particularly material next to local availability. When you want
a chocolate bar, you want it *right now*, not in a week or so, and so it's
far preferable to have a local retailer, regardless of the price, simply
because you can gratify your craving immediately. However, of greater
concern is whether there's a critical mass of chocoholics in your area. In
order for the chocolate-bar-focussed business to succeed, there needs to be
enough regular customers that you can move the bars, because the non-
chocoholic is rarely going to go slightly out of the way for a chocolate
bar, not when they can buy a Hershey bar at their local supermarket.

The business of *chocolates*, however, is very different - people will go
somewhat out of their way, because, when buying a gift, it's more of a
special occasion and they feel it may deserve a more careful search.
However, these are casual purchases - you wouldn't attract as many regular
customers but you might get more people walking through the door. So it
comes down to a choice - do you want more customers with low frequency of
purchase, or fewer customers but a lot of recurring business?

Lack of local competition is a double-edged sword. While having a local
monopoly on quality chocolate could mean plenty of business, it might also
mean that there isn't the local demand to support such a business. Even
there, it gets complicated. Sometimes the *current* local demand isn't very
high, but can be made to be high enough to support your operation through
information - i.e. if you send out enough promotional materials, or get the
local paper to write an article, or do some other activity to get locals
aware of the possibilities of quality chocolate, you might find people
catching on and developing the demand. Conversely, if you become too
successful, you're bound to attract additional competition, who may be
better funded, more knowledgeable, or have better industry contacts.

>Right now I'm envisioning having a supply of Lindt, Ghirardelli, and
>Scharffen Berger bars, truffles from Dan's Chocolates. Beyond that I
>am still researching for other types of confections and fudge.

Based on your concept, I would look to a different group of chocolatiers to
supply bars. The 3 you mention are mostly producers of plain chocolate bars
- they don't produce much by way of high-end chocolate confections,
certainly nothing that seems special as a gift.

If you want to offer chocolate bars, I think a better bet would be the
companies that also manufacture really first-rate confections, the kind
that people really will consider giving as special gifts. Cluizel is always
a good choice because his confections are as good, and as pretty-looking,
as his bars. Amedei also makes some beautiful confections, but the price of
Amedei is staggering - *very* intimidating for the novice buyer and perhaps
something to stay away from in the short term, at least until you can build
a reputation. Enric Rovira, a Spanish manufacturer, has gorgeous chocolates
- real eye-poppers, and his basic chocolate bars are also very good.

Chocolates require even more care in shipping than chocolate, if you wish
to ship it. Shipping in warm weather during the summer is extremely
hazardous. For chocolates, you'll usually need an insulated container
(usually, a double-wall Styrofoam box), with the product therein cushioned
with bubble-wrap and/or Styrofoam "S"'s, and an ice pack. Bars are a little
more sturdy, but still, they will require insulation from the heat. Fudge
ships far better. Extreme heat will cause problems with fudge, but an ice
pack is rarely required. The rule of thumb for regular chocolate is, if
it's likely to be continuously in an environment where the temperature is
over 75F for an extended time, say, 4 hours or more, then you'll be safest
to ice-pack it.

The premium for quality chocolates is much higher than that for quality
chocolate bars. A standard 100 g chocolate bar might cost $1.50, where a
quality one could run $3.00 or more, but where you could buy an 250g box of
gash chocolates for perhaps $2.50, for truly quality chocolates, that same
box will most likely be upwards of $8.00. Here in Seattle, the ultimate
quality truffles sell for $1.50 each and above!

It's also a good idea to find out what manufacturers of quality chocolate
confections are in your general area. The closer they are to you, the
better, because the chocolates will be fresher, they will arrive to you in
better condition, and you'll have a more reliable supply. Chocolate bars
are far less sensitive in this area because they keep for a while - stored
properly, their shelf life is in the years, as opposed to weeks, and they
can effectively be shipped in bulk cases, where chocolates invariably need
smaller shipment sizes and packages.

As you can see, what you have confronting you at this point is choices, not
answers.