Pricing retail coffee bags: pack size, postage and price points
A 250 g bag carries the same label, valve and pick-and-pack time as a 1 kg bag. Price per bag, not per kilo, and count postage and fees before you decide what you make.
6 min read Updated 9 October 2026
Retail coffee looks more profitable than wholesale because the price per kilo is higher. Much of that difference is eaten by costs that are fixed per bag: the bag, the valve, the label, packing time, postage and payment fees. Price each bag size on its own.
Cost per bag, not per kilo
| Line | 250 g bag | 1 kg bag |
|---|---|---|
| Green coffee after roast loss (£10.00 per roasted kg) | £2.50 | £10.00 |
| Bag, valve and label | £0.45 | £0.65 |
| Energy and roasting labour | £0.45 | £1.60 |
| Pick, pack and box | £0.60 | £0.70 |
| Card or marketplace fees (assumed 3% of price) | £0.30 | £0.90 |
| Total cost before postage | £4.30 | £13.85 |
At a £10.00 price for 250 g, this example makes £5.70 a bag before postage, which is £22.80 per kilo. At £30.00 for 1 kg it makes about £16.15. The small bag earns more per kilo but needs four times the orders, packing and postage.
Postage decides the basket
Postage for a single 250 g bag can be a large share of the order value. Common answers: a free postage threshold set above two bags, letterbox-sized packaging that fits the cheaper postal size, and subscriptions that ship on a schedule. Check your carrier's size and weight bands; a box a few millimetres too deep can move you into a dearer band.
Price points
- Hold a clear ladder: an everyday blend, single origins, and a small number of premium or rare lots priced to match their cost.
- Show price per kilo next to bag price if you sell more than one size; customers compare.
- Prices in a retail shop must include VAT if you are VAT-registered. Coffee beans and ground coffee are zero-rated; equipment and gift items usually are not. See VAT on coffee.
Raising retail prices
Retail customers notice price changes more than cafes, but accept them when the reason is visible. Change prices when you change lots, explain cost increases plainly, and keep a lower-priced everyday option.
Where Roastnet helps
Questions roasters ask
- How much should a 250 g bag of speciality coffee cost?
- Work from your cost per bag, including packing, fees and postage, then check the market. Prices vary with the coffee's cost and your positioning.
- Should I offer free postage?
- Set a threshold that covers postage from the margin of a typical basket, usually two or more bags.
Official sources
Rules change. These sources were checked on 9 October 2026; always confirm the current position with the body that publishes them before you act.
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