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Meet some women who had a great business idea. They've started a business where busy people can get a coffee in the morning without getting out of their cars. LUISA SACCOTELLI: A consumer opportunity for the time poor among us. In fact, no need to even get out of the car. Drive-through coffee. I'll have a latte, please. Yes, another only-in-America business concept which is taking root here, driven by two young women with profit margins to envy. LINDA PICKETT: People are strapped for time. They don't have the opportunity to walk into the shop and grab a coffee anymore. I was a salesperson on the road. Just the thought of getting out of my car and walking into a cafe and ordering a coffee, one more trip out of my car, I didn't want to have to do. In America I just found all of these drive-through coffee takeaway shops and couldn't quite understand the attraction to them. But once I started using them, I became addicted to it. LUISA SACCOTELLI: Linda Pickett came back and tried out a one-line pitch on fellow saleswoman Jane Walker, something about convenience and coffee. Both were sold. LINDA PICKETT: We were getting up at 5.00 o'clock in the morning, working on the site from 6 until 9.00 o'clock, racing home, getting changed and out the door and maintaining our full-time jobs. So that was incredibly difficult for us. We found the hotel and negotiated with the manager there, and then we got into the logistics of it, how we were going to actually operate from there, and then organising for the purchase of the coffee cart. LUISA SACCOTELLI: They operate from the driveway of an inner suburban bottle shop between 6 and 9.30 in the morning, paying rent of just $70 a week. LINDA PICKETT: The customers sit in their cars and wait for us to serve them in the window and then they continue on their way. LUISA SACCOTELLI: 80 per cent of those buying are men. LINDA PICKETT: The initial rush of traffic is the tradies on their way to work. Then it swings into the executives from about 7.30 until the 9.30 period. It was six months that we were actually in our business daily. That was what we had to do in order to pay ourselves back the initial investment that we made. LUISA SACCOTELLI: Now, 12 months later, they have repaid their $35,000 start-up costs and are turning over $120,000 a year. LINDA PICKETT: We operate at a gross margin of about 70 per cent. We do between 100 and 150 in the three, three and a half hour period. For our coffees we have actually decided that we are to charge a premium because we are offering a premium service. We sell a 12 ounce for $4. LUISA SACCOTELLI: When it all breaks down, the $4 cup has 44c worth of coffee in it, 40c of milk and the cup costs 20c. Taking out wages and rent, the women are left with a net profit of $1.70 a cup. LINDA PICKETT: Our accountant had suggested that with these figures we should be growing at a faster rate than we are. But there's a certain amount of fear involved with jumping into your own business, investing your own person finance into it. JANE WALKER: Also, we had a lot of advertising costs which we hadn't calculated. LINDA PICKETT: But we've been very fortunate that the market has not caught on to us any sooner than it has now, so that we need to throw ourselves into this, get out and get a name for ourselves and flood the market. We don't have the capital to do that. We've sort of been throwing around the idea of whether we keep it ourselves or whether we move into that direction. We're also looking at a potential franchising opportunity, probably 12 months down the track.
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consumer opportunity A consumer is a buyer. A consumer opportunity is a good situation for a consumer. time poor Time poor means people who don’t have much time. drive-through Drive through means a place where people can drive their cars in, and buy something. Notice how they spell through on their sign. They call it drive-thru, spelt ‘t-h-r-u’. This isn’t a correct spelling, but it’s very common in signs and advertising. ![]() latte A latte is a milky coffee in a glass. ![]() taking root Something that is taking root is becoming established. Example: Mobile phones are taking root in all age groups. Click here for more idioms and common expressions. driven Driven is the past participle of the irregular verb drive. Follow the link below to find out more and to listen to some examples. more information: drive profit margins A profit margin is the total of money made minus the total expenses paid to run the business. strapped for To be strapped for something (especially cash) is to have very little of that something. Example: I can't go out tonight - I'm strapped for cash. Click here for more idioms and common expressions. on the road Here on the road means being in a car travelling somewhere. Example: I'm on the road for more than an hour every day. came back returned Example: He went away and never came back. For more meanings and audio examples of the phrasal verb come back, follow the link below. more information: come back getting up To get up is to get out of bed. Example: I get up at seven every morning. For more meanings and examples of the phrasal verb get up, follow the link below. more information: get up found Here found is the past tense of the irregular verb find. Follow the link below to find out more and to listen to some examples. more information: find got Got is the past tense of the irregular verb get. Follow the link below to find out more and to listen to some examples. more information: get bottle shop A bottle shop is a place where you can buy bottles of alcohol. Bottle shops are often drive-through. ![]() But bottle shops usually don’t open until 10 am in the morning. So they use the driveway in the morning, between 6 and 9.30. customers A customer is a buyer, a person who buys goods or services. We can call the people who use the business buyers, consumers, customers or even clients. tradies tradesmen initial investment the money used to start the business made Here made is the past tense of the irregular verb make. Follow the link below to find out more and to listen to some examples. more information: make start-up costs Start-up costs are all the money you have to pay when you start up a business. It includes registering the business, buying all the things you need, and renting a place. turning over Turning over means doing business to the value of. The total amount of money that is coming into the business is $120,000. But that’s not all profit. They have to pay all their expenses first. gross margin Gross means the whole or total amount of something. A gross margin is the difference between what something costs and what it is sold for. net profit In business terms, net is the opposite of gross - it’s the amount left after expenses are deducted. So net profit is the profit after expenses have been deducted. franchising Franchising is allowing other people to sell the same products under the same business name. down the track in the future Example: A few years down the track, I'll finish studying and find a job. Click here for more idioms and common expressions.
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