When cash flow issues needed to be addressed, Di Pacci’s team turned to Ordermentum to allow the company to take control of payments.
Michael Rababi, Managing Director of Di Pacci Coffee, is one of the hospitality industry’s most inspiring success stories. He started out running a coffee cart in Marrickville, went from a two-person cart, to a cafÃ©, to roasting his own organic and fair-trade beans, and now supplies over 350 coffees nationwide.
He not only runs a cafe and roasts the beans, but is now the largest coffee machine showroom in the world, with all brands represented. Di Pacci’s headquarters also houses a barista training center.
In terms of coffee, Di Pacci is a great commercial success. The family business is flourishing.
âWe roast every day, five days a week, fresh. And we can meet everyone’s needs, âRababi said.
Di Pacci also provides white label roasting for more than 150 other coffee suppliers. With six blends and sixty unique origins, it’s no wonder Di Pacci is expanding nationwide, having opened in Melbourne.
Rababi’s advice to other budding roasters? âYou can only try,â he said. âIt’s a very, very tough industry. But if coffee is your passion and you can make it work like a business, give it a try. There is a lot of stuff for everyone.
As Rababi developed his coffee empire, he learned many lessons along the way. Like many businesses, one of his biggest challenges has always been cash flow.
âIt’s obviously easier when you’re little. But once you get to a certain point, weekly income is important, âhe said. âSo if your orders go out and nobody pays for them, then you’re going to come to a point where you can’t pay your own bills and your own staff. Then you will sink.
Regardless of the size of the business, withdrawing money from customers remains a challenge.
âWe now have a client who owes us around AU $ 12,000. We have never had a problem with (his payment) before. Then my accountant went on vacation for six weeks and no one noticed that she wasn’t paying, âRababi said.
“When she came back she owed nine bills for AU $ 12,000 or AU $ 13,000 and we cannot take it away from her.”
When we asked him what his advice would be for other companies, he replied: Start right away with Ordermentum!
Since the rollout of Ordermentum and the shift in payments from billing to credit card / direct debit, the business has been able to grow because there is money constantly flowing in.
âI can see money every morning when I wake up – I see Ordermentum in my bank account. I know that tonight when I go to bed, when I wake up in the morning, there will be an Ordermentum payment.
Initially, Rababi was nervous about forcing a change in the way his customers pay.
âWe were a little hesitant at first, we thought ‘how are we going to tell people to give us their credit card numbers, they’re going to think that’s rude,'” he said.
“But then we decided that those who didn’t want to hand them over were probably the ones who were going to cause us problems, so we don’t want them anyway.”
Even for customers who pay on terms, the difference it made in allowing the company to take control of payments has been huge.
âWe make upfront payments through Ordermentum and some are seven days later, some 14 days,â Rababi said.
âIt’s nice to have the payment details on file, especially if you know something is going on, then you can just click on the credit card debit button and take your payment. “
All the worries about whether customers would adopt the system are quickly gone, and new customers are even asking them to use it.
âA lot of them are already using Ordermentum and they are asking if we are using it. When we say we are using Ordermentum, they say âOh, beautiful! “,” Said Rababi.
For the hesitant few, it was just a matter of working closely with them to make sure they understood exactly how to place an order on the app and let them know that they always had someone to talk to.
âWe just had to keep going back and talking to them and explaining to them. We would tell them, âYou can call us anytime and we’ll do it for you,â Rababi said.
“We will continue to call you and ask for your order, we will just do it through Ordermentum on our side.”
Along with the cash flow sorted out, Di Pacci’s team also noticed a huge time saving by taking orders with Ordermentum.
âBefore, each customer was at a different price. Most customers charged different prices depending on whether they were on loan or supply only, or a high or low volume account, âRababi said.
âAnd some people take simple cups, others take printed cups, which are more expensive. Some people take the generic chocolate, some people want the expensive chocolate. So it was a lot of work to keep track of all the different customers and their offers, and now we save everything once and it’s right there. We save a lot of time. “
Rababi was blown away by how quickly order taking is now, even for the few customers they still help over the phone.
âI noticed my personal assistant placed an order in less than 10 seconds,â Rababi said. “She goes ‘bang, bang, bang’ and it’s done! I used to sit there, make the orders, call each customer one by one, then write it down on a piece of paper, go back to my billing system, write it down, trying to remember what they paid the last time, previous billsâ¦. It’s definitely a blessing.
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