2 – It allows us to set an annual price with you that does not change until a new cycle in the new year. Apart from sales contracts and reserves, our prices change each month to meet the dynamism of an international agricultural trade. At any time, we can have cocoa in the process, on the water, or in the camp. Cocoa does not develop over a tax cycle and therefore fluctuations in the price of beans do not coincide with the calendar year. Sales contracts set the price of all orders at the lowest price, taking into account the total volume of different origins that you require to draw during the year. Economies of scale remain a key factor in demonstrating an Impact-First business model, and sales contracts are an important element in this regard. The conversation begins with a retrospective of Uncommon`s previous year`s purchase history. If you feel that in 2019 there have been significant changes that may or may not have an impact on this year, we can go back even further in your purchase history to get a realistic growth forecast for your 2020 needs. We will then work with you by planning your production cycle in order to find your total volume per bean and an approximate delivery plan. Once these parts are agreed, we will send you the sales contract. After signing, you can consider the shares listed in your sales contract as reserved for you. It is helpful to have this close-up delivery plan in place so that we can consider what crop your beans will come from.
For example, if you need 8 tons of Mountain Maya this year, but you only need 2 tons in Q1 and Q2, then 6 tons in Q3, we can plan for the first half of the year to tap into the 2019 crop, the last 6 tons from the 2020 crop, once that cocoa is landed. For those of you who are starting to make your orders, or for those of you who have questions about Uncommon`s Densao price options, we`d like to share with you. There are three ways to buy beans from us: cash purchases, reservations and sales contracts. 1 – It ensures that your volume is available on your timeline. This allows us to work with you in a bigger direction. You can be sure that the volume you need is already in stock or on the water. Annual sales contracts help us to accurately respect and predict the amount of cocoa from each origin we need to bring to you, our chocolate manufacturing partners. This stability deepens confidence and the ability to work from the beginning to the chocolate factory. We take responsibility for planning when more beans need to come to make sure you have the freshest product, and this helps consistency in our purchases from producers who depend on that stability for their own business. Bookings are an average level of commitment.
This model is useful if you know you need 4 or 5 sachets with a particular stock and you know you don`t need them now (or can`t store it), but you`ll have it in 3 months. We keep a 6-month window for bookings and ask for a 15% non-refundable down payment to guarantee the order. Reservations are based on the price of beans, which is reflected in the current month`s price sheet when you pay your down payment. It can still be difficult to get volume-based discounts in these prices, as they are limited to short-term orders, but if your storage space is limited and you want to receive the best possible offer on cocoa, it is best to reserve the total amount you need and have it shipped to you over several months. Bookings are a good way to back up the short-term volume you know you need. Thank you for reading this information! We take our work very seriously and negotiations on the needs of small businesses, scaling up artisanal chocolate producers and the young specialty cocoa origin is not a small feat.