Diminishing Returns and Coffee Beans

The product timeline of my company's coffee beans (mongoffee coffee beans):

(Place)

The ground is prepared and seeds are sown in africa or south america, specifically mongolia for this product.

Beans grow to full size over time.

(This involves place and product because you brand workers being paid well)

Beans are picked by workers from the plant - paid well with fair trade practices

Beans are put in sacks and shipped to waiting country

(Product and promotion)

Coffee company designs brand and packaging for the product

(Price and promotion)

More product research, then the employers decide on price - organise discounts and list price.

(Promotion)

Advertise product - direct and digital e.g. free samples in the streets and adverts on tv, I market it as a quality monglian item.

(Price)

Beans are sold and provided in supermarkets.

In a coffee shop employees grind up beans and make coffee

(Price)

Profit

Diminishing returns in farming

(the law of) diminishing returns

1. 1.

   used to refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested.

look at diminishing returns with coffee price point for them

A farmer grows x number of beans employing people to plant them and pick them, the coffee beans and employees are an investment that has to be compared to the eventual profit. you have to ballance the optimal amount of investment (as little as possible) for the highest amount of profit. Eventually you have a huge excess of the product and this means that the value of the product will drop or freeze. so adding employers wont change this.

For example you could grow 1000 coffee plants but you would need to employ people to pick them. Their saleries would cost money on top of buying the seeds of the coffee beans and the land you bought to grow them on. As a result the employer would would want to employ the optimal amount of people to pick the plants, at the optimal price to get the most profit. This is why immoral business practices can become reality, because employers try to work around the law of diminishing returns by takeing huge numbers of people for low wages. They get the most profit but very little goes to the workers. e.g. working for a dollar a day.