Market research question

So last night had a dream that I presented our Southern Boy Teas iced tea line at the World Tea Expo this May and they were going over great, except they were packaged in large re-sealable stand up pouches with eight 2-qt teabags in each one.

I initially packaged the SBTs in single teabag units because at the time, I could not afford to produce them in the quantities required at a low enough cost to offer them at a price point that I feel anyone would be willing to pay. But now that I have mastered some economies of scale, and can more efficiently and economically produce these teabags, I’d like to revisit the idea.

So, my question to you today is, if we had a brilliant line up of iced tea offerings, including a couple of unflavored options that would whoop any grocery store brand’s butt, what is the most you would consider paying for eight 2-quart teabags (4oz of tea). I don’t want to know what you would pay one time or two or for special occasions, I want to know what you would pay any time and feel good about dumping all of that store brand iced tea into the landfill, keeping in mind that most of our customers report they get just as much goodness from a second steep of our teabags as the first, you’d be getting enough tea to make eight gallons of iced tea.

Thanks for taking the time to read and comment on this. I look forward to reading your thoughts.

19 Replies


I got some thoughts!

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I have tried a sampling of your SBT before from a friend (I think it was Lime Cola. I liked it quite a bit.) I would buy bags or sachets if the flavors were unique but not kitschy. The Republic of Tea does iced teabags as well, and they do a pretty good job at it. I would love to see an iced jade oolong. Maybe a Ginger Grapefruit Oolong? I think a Strawberry Basil or a Cranberry Lavender Black iced tea would be amazing. Watermelon Mint Green gets my mouth watering by the sound of it :P
I often brew large amounts of cold brew/sun tea if I know I am going to have company over. If I had a way to simplify the process, like pre-portioned teabags, then I may be game to the idea.

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cookies said

I would probably be willing to pay around $6 for 8 bags. I think Republic of Teas are too expensive, though their price includes the nice sized tin and they have some interesting flavors. A second steep of iced tea doesn’t matter much to me, because I don’t finish it immediately like a cup of hot tea, and I don’t keep the bag around that long.
+1 on the ginger grapefruit idea

cookies said

Oops, I was thinking 1 qt. like the ROT bags when I typed that. So I guess double that number.

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Sara said

Republic of Tea does something like this for 7 or 8 bucks a tin. That’s pretty reasonable but I’d go up to $12 for a similar amount if the quality was there.

Yeah, any more than 12 bucks and I would rather not spend it on iced teabags. I saw on Republic of Tea that the tins contain 8 teabags that make 1 quart each. If you stick to your 2 qt size, I would have no qualms about paying up to ~12 dollars for it. I would of course do a second steeping.

12 dollars is what I was thinking as I read the original post. Given that I can get (with most of your flavors) a half gallon with a cold brew and then save the sachet for a hot brew, so I can get a full gallon of tea from one sachet from most of your flavors, I think 12 dollars would be a reasonable price for it. I think that I might even consider 15 but that would be the most that I’d be willing to consider.

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AllanK said

I think I prefer my tea, iced or otherwise as loose leaf.

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Lilysmom said

H&S does this raspberry herbal pouch that I love. It’s tart, but I love it. Have been drinking it regularly for 2 years. You can also buy it in pretty tins, with 6 pouches for $8. Last year I got 10 tins, at 50 percent off, a great deal. I find it re steeps very well. H&S is a well established brand I trust, so I feel this is a fair price for a quality product that I know I love.
If purchasing something new in the grocery aisle, I would expect to pay less. That said, I don’t currently shop for tea in the grocery store.

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cookies said

Off topic but, Frank, have you ever used/considered using hojicha for your blends? There are so many companies that flavor other teas but only one or two hojicha blends that I can think of. It might be something to set you apart.

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Sil select said

I actually hate it when the fact that you Can resteep something gets factored in to justifying the price. It means that I HAVEto resteep in order for the price to work out to being less expensive and sometimes I’d. Rather just not have to…or someone throws away thee bag or…or…Or. Ie. Things happen. I’d rather that be an added bonus, or just have teabag that makes a larger size once really well.

That being said, I tend to balk at pricing on iced tea bags after about10$ since I could just use my other looseleaf tea, and have it be generally more economical, and help me get my cupboard under control lol

I get that. But it would be stupid of me not to mention it. The reason the teas stand up to two steepings has nothing to do with the amount of tea in it. It’s all about the quality of the tea itself.

I agree with you Frank. When I buy tea, I don’t think about how may times I can resteep it. If I can brew it multiple times, that’s a bonus. I do use my loose leaf for iced tea when I want to bring down the amount in my cupboard, but I would definitely consider having ‘guest’ iced tea.

Sil’s point reminds me of the two occasions I brewed up a SBT tea – the teabag went moldy before my parents and I could finish the first half gallon.

Would you consider producing smaller bags that make a quart of iced tea? That seems like a more convenient size to me.

Kittenna said

Yep. My teabags went moldy before I could re-steep too. And I even tried putting them in the fridge. I simply can’t store that much tea at one time, nor can I drink that much that quickly.

Same here. I have way more SBT sachets, but I can’t make them for myself at home because I don’t have the fridge space (or a pitcher large enough).

Interesting. Honestly, I thought the 2-quart teabags would be the most convenient—most of the pitchers out there are 2-quarts or a gallon. When I resteep, I typically do it all at once. I make a full gallon at a time.

Kaylee said

That’s actually too big for me too. I always cut the teabag open and reapportion the leaf into smaller bags so I can brew in a small pitcher or large teapot.

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