What’s your plan after real estate?
For Ronald, it was clear. Coffee was the plan after real estate.
After all, he came into Real Estate with the intention to fund for his passion.
He’s now opening a cafe in Joo Chiat and as a former realtor and a business owner, Ronald understands the two different types of business.
We came to the conclusion that real estate is indeed a simple form of business.
Well from how I see it, it’s not just a simple business, it’s also one that is lucrative.
David: Welcome, my friend, Mr. Ronald Tan owner of the King’s Cart Coffee.
David: So viewers, if you don’t know, he is actually my very close friend. We communicate every single day.
David: He is actually a friend of mine from a friend of mine, I know him from my friend Lim.
David: with my secondary school friend. And then we met for the first time when he got married.
Ronald: – Yep.
David: That’s the first time we met, then we hit off immediately, because of a very similar kind of character we like to talk a lot of nonsense.
Ronald: That’s you and not me.
David: I’m OK. And I only talk nonsensically with very good friends, you know, so we ended up being really very close, playing a lot of games together at night.
Ronald: – Yep.
David: So we played Dota, which has this moniker of Hairy Nipples. By the way, before we begin, talking about the main agenda of today which is basically, I’m here to drink your coffee, so wait, the moniker first; why use Hairy Nipples? Do you really have very hairy nipples?
Ronald: No, because I was on- you remember 9gag?
Ronald: 9gag? Yeah.
Ronald: I saw this picture of a very hairy nipple on 9gag before. And then I just use that as a nickname after that.
David: Oh! I always thought that it was your nipple.
Ronald: So the nipple with hair, makes up to look like Santa Claus.
David: Ron is a very funny guy and you’re about to start a café right?
Ronald: Yes I am.
David: So he’s the founder of King’s Cart Coffee and formerly a real estate agent.
David: – Sometimes ago?
Ronald: More than 12 years ago. About 12 years ago when I was 21. I revealed my age.
David: No, you’re 32? 33?
Ronald: 33 this year.
Ronald: Yeah, same as you.
David: No, I’m not the same as you. I’m younger than you.
Ronald: You’re younger than me?!
David: I’m younger than you! Oh my god.
Ronald: Oh, you’re one year younger.
David: Yeah, I’m one year younger.
David: So you started this. Why out of so many things you want to do this King’s Cart Coffee
Ronald: The passion. F&B has always been in my blood.
David: In the blood-
David: So when you decided to do this thing at a point in time because you’re doing real estate. You were doing pretty well isn’t it?
Ronald: In terms of- It was ok.
David: And then you left in what 2012?
Ronald: 2012 or I left when the second wave of ABSD hit. That was in about 2016?
Ronald: 2016/2017, somewhere around there.
David: So you were previously doing real estate, then the second wave came in and then you left. So you were doing what in real estate previously?
Ronald: I was focusing on landed property and private residential. All the condominiums and yeah.
David: And so no new launch. Nothing?
Ronald: No new launch.
David: Do you do any kinds of launch? What was your prospecting method like? Just maybe share a bit.
Ronald: At my time?
David: Yeah, at your time.
Ronald: At my time? Wah. That time, a bit more was traditional.
Ronald: So at the time we do more door knocking, we do a lot of…We throw a lot of letters at that time. And then we reach out to these wealthier bunch of people in a very different way. So they have a lot of golfing sessions that we used to go to, but I don’t play golf, but we used to do.
David: You go and pick the balls.
Ronald: No, I used to do a bit of events for BMW last time.
David: Oh okay.
Ronald: They have the golfing for BMW, the event, the golf competition. And then we also do some other. So there’s quite a range of networking sessions that we can go to. And then that’s where we meet these people. And then last time before ABSD hit, it was very easy to get more investments.
David: – Yeah.
Ronald: I think if you live through that period or that era, you would know.
David: I did. Before about ABSD, but that was late 2011, right?
Ronald: – Late 2011, yes. So the loan was easier. There’s no TDRS, ABSD wasn’t existing. It’s very fun because the market was very fluid at the time. We could do a lot of things with the banks.
David: I remember they gave some kind of- they cover the lawyer fee or something like that?
Ronald – Oh yes.
Ronald: And then it was quite easy to do last time. Yes, last time, there’s no additional buyer’s stamp duty. So basically, if you go to a new launch and you take a letter of intent there wasn’t a letter of intent, what is that called?
Ronald: Once you get the OTP, basically you can come out and resell the OTP. Straight away.
David: Oh yeah, you can flip the OTP, right?
Ronald: – Flip the OTP. You can flip property also, now cannot already.
David: Okay so when you were facing. It must have some trigger, right? A trigger that you leave the
real estate industry that.
Ronald: Oh yeah, of course. ABSD was one of the main things. I was studying then, you know when the second wave hit. The market dropped very, very much, especially for us because-
David: – you mean transaction volumes?
Ronald: – Transactions volumes, yeah correct. So that period of time, that one year alone was quite tough because the whole market changed. And then everyone’s holding back because nobody’s sure what to do. The rich people are not buying because they feel that the property market would drop. And then the poor people want to sell but nobody wants to buy.
David: – That’s a mismatch.
Ronald: – There’s a mismatch, correct.
David: There’s a gap in between.
Ronald: So that one whole year, I think the transaction dropped by a good 70% for that market that we are in.
David: Then your income also subsequently dropped by 70%?
Ronald: Oh! of course, income definitely dropped because no transactions. You know agents, we live through commissions. So when it became unstable, when it became less of a commission, that was the first trigger,
David: What was the second trigger?
Ronald: Second trigger was I like coffee.
David: So you have been drinking coffee?
Ronald: No, I’ve not been drinking. When I was much younger, when I was a teenager like a lot of Singaporean teenagers. You know, we go and work part time jobs. That’s when I really fell in love with coffee. So the reason for me to join real estate last time wasn’t for the money- To look at it as a career for the money. I want to gain capital so that I can go and start my own shop. That was the main intention
David: Took you a few years, huh?
Ronald: Took me a few years. Yes, of course. So when you start off with nothing, you have to work for it.
David: Yes, I’m the same as you.
Ronald: I would think it was about 4 to 5 years in the real estate industry.
David: So here’s the thing. You are now following your passion and actually we are in the game, you know, we chat about whether you want to come back to real estate?
Ronald: – Yes.
David: In my humble opinion, right, I think that in terms of business. Real estate is one of the simpler one. It is just two components. You manage your existing relationship and then you create a new relationship. If you can do this, not like, you know, like now you’re renting a shop, you’re going to get a shop?
Ronald: Correct, I am.
David: So this particular shop is going to cost you a bomb in terms of renovation. You have to then hire people. You have to set up everything properly, your equipment and all that. Then after that you have to train your staff. And then finally, you have to do marketing.
David: Real estate is product marketing. So that’s the difference between a traditional business, which is the whole point of today’s video. I’m here to help promote Mr. Ronald Tan’s King’s Cart Coffee. You’re going to open a cafe?
Ronald: – I am.
David: But before we talk about the cafe, I want to share something about him. And that is his coffee. And he actually brought some coffee over. So let’s do a bit of product placement, shall we? Where are all his coffee? Just put here first.
Ronald: – I have more, actually.
David: Take it all out.
Ronald: – Ok sure.
David: Because I’m going to drink all of them. What is Lintong?
Ronald: Lintong is a place in Sumatra. – It’s a region in Mandheling.
David: – Is that chocolate coffee?
Ronald: – No, this is pure chocolate.
David: – Oh ok.
Ronald: Just in case you don’t take coffee,
David: I do take coffee. Matcha, ok.
Ronald: Premium matcha.
David: So over there we have five different kinds of coffee.
Ronald: I have six though actually, I forgot to bring one.
David: So let’s look at the first one. This is Brazil & Lintong. Fresh earth, grapefruit, chocolate and walnuts. So you put all these inside?
Ronald: No, of course not. So these are the aroma or tasting notes, we call it, of the origins of the coffee. So Brazil, the coffee is a blend of both Brazil and Sumatra.
David: I’m going to use a cup so that it will not pass Covid-19 to you guys later
Ronald: So it’s double sealed, yeah.
David: – Oh, ok. So there’s one more
Ronald: So it will not spill out. Reminds you of the younger days when you take Chinese medicine, right?
David: You know, the…The minty, minty one?
Ronald: Yeah that one.
David: Wah, this is very hard to open.
Ronald: Do you want me to help you?
David: – Please help me.
Ronald: – Is it that difficult?
David: No, my nails are very short. I’ve got (short nails) ever since the army; I got a habit of keeping very short nails, ok so we have one. Let me taste it. Moment of truth ah. Moment of truth from King’s Cart Coffee. Directly sent over by the founder himself. I think I will enjoy this white coffee. Let me try this. Wah! Already won Starbucks. Wah!, Wah, it’s very…The grape-
Ronald: – Do you like it? Don’t have grapefruit
David: I cannot taste the grapefruit, you know? But it’s really very aromatic.
Ronald: – Actually, you should try this first because this is the black (coffee) so milk actually covers some aroma. So later we can try the black first.
David: Wah, it’s very smooth. You used what kind of machine? What kind of machine did you use?
Ronald: What kind of machine I used?
David: Do you use your own methods or? -any hidden secret?
Ronald: It’s not really a secret. It’s more of what sort of beans we used and what sort of ratio we used for the coffee.
David: You mean this is really from Brazil and the-
Ronald: Yeah, so Brazil’s beans are very creamy.
David: Is this really from Ethiopia?
Ronald: This one? Yes! This is Ethiopian coffee. So this is from the place of Yirga Chefe
David:- Amazing right?
Ronald: Ethiopian coffee is very floral and because of cold brew, how we brew, if we brew it in the fridge overnight. So it’s very tea-like. There’s no tannin. You won’t have an astringent taste.
David: Let’s try this. Pour you a bit more.
Ronald: You should try this first then the white, actually because this one has more- Without the milk, it actually brings out more aroma.
David: King’s Cart Coffee. Do you have a website?
Ronald: Yeah of course, KingsCartCoffee.com, this is a very light roasted coffee. So the fragrance is a lot more.
David: How come the taste is like that ah?
Ronald: It doesn’t taste like coffee, right? because Ethiopian coffee is the way it’s grown is very different from the local coffee that we have. So Ethiopia or African beans are known to be very fruity and floral. And then we roast it light plus when we brew it overnight in filtered water in ice.
David: This is really a coffee bean, is it?
Ronald: – This is coffee beans. Just coffee beans only?- Pure coffee beans and water.
David: How come got the fruity taste one?
Ronald: So the taste comes from aroma. Aroma which is something that you eat or drink and then you remember from your nose. So this is what we’re trying to do also, to bring out more aroma.
David: I want to try the next one. I cannot wait already. I want to try the matcha.
Ronald: Matcha? Sure.
David: Matcha is from- antioxidant potion, I saw! So if you drink that, you will Benjamin Button!
Ronald: – Yeah, you’ll get younger- You go younger and younger. Matcha has a lot of antioxidants, people just don’t know they drink it as it is.
David: Actually, coffee by itself, does it have antioxidants?
Ronald: Have but not a lot. Not as much as matcha.
David: Let me show you guys. This is the Premium Matcha not just any matcha. Why is it premium?
Ronald: Because it’s expensive.
David: Ok so this is the Premium Matcha. I have no idea if matcha got expensive and cheap one.
Ronald: Have. There are different grades one.
David: From Japan, is it? Or something?
Ronald: Well yeah, I guess so. It depends.
David: Yeah, the expensive ones are from Japan. Ok, I’m going to taste it now. Premium Matcha. This has no coffee?
Ronald: No coffee.
David: – This is really good. Wow! How many mL is this by the way? This is 180mL to 200mL
Ronald: The glass bottles, they are sometimes a little bit different but it’s about 200mL. So we made it slightly thicker because some people like to drink it over ice. It’s very good huh ?
David: This is better than you know like, I go to Starbucks by the way, I love Starbucks. Nothing against Starbucks but this is better.
Ronald: – Thank you!
David: This is better than Starbucks.
Ronald: – Thank you.
David: I mean I drank Starbucks one before that is like what? $7? $8 for a Venti or something like that? The large one I guess. This is better, man.
Ronald: This is what we serve in cafes. All those specialty cafes. They would serve this. So we’re using high grade matcha for the bottled drinks as well.
David: Really? Wow. It’s really amazing. I want to try everything. We just put this aside first. So are these going to go into your shop or?
Ronald: These are takeaways. They are, right now, only available online. Once my shop is up, maybe we would do free as in you can come and pick it up by yourself if you want.
David: But they can go into your shop and drink it?
Ronald: They can and we are doing even fresher ones there. So why drink from a bottle when you can drink it fresh?
David: Seriously, all I know right is you are the Hairy Nipples, the sniper, I always want to pick sniper and you always also want to pick sniper. I didn’t know that you can make such a good coffee.
Ronald: Glad that you know now.
David: It’s a waste if you did real estate.
Ronald: I think so too. I come in, I steal people’s businesses, for what right?
David: Why’d you want to? You know, like most of the viewers are going to be property agents, right? They are very glad that you actually left the industry. And you go and do all this coffee and
Ronald: – Actually, even though we left, we’re still pretty much in real estate. I supply a lot of coffee to your show flats.
David: – Really?
Ronald: – Yeah.
David: – Oh, you do the cart right?
Ronald: Yeah, we do coffee carts also.
David: So are you still going to call yourselves King’s Cart at the shop itself?
Ronald: Yeah, the shop itself will be called King’s Cart Coffee Factory instead because that’s where we are going to produce. But we do still have the coffee carts. So we supply them to weddings, to events and then some of the real estate new launches as well. So in the show flats, giving out free coffees. So some of your agents or friends might have tried our coffee there.
David: No wonder, I think it could be a very familiar taste but do you think your taste has already improved? Even from then until now?
Ronald: We have a wide variety of taste. So it’s a bit different.
David: So you see, this is the kind of history we’re talking about. Even when you open up a shop, you’re going to call it King’s Cart Coffee.
Ronald: – Yes, it is.
David: Because at one point in time, it’s a push cart. It’s a cart, right?
Ronald: – Correct.
David: So that is like the heritage. I really hope that this King’s Cart Coffee can open up a lot of outlets in Singapore.
I got an idea, actually. You know, real estate leaders, right? They like to meet up with their associates. You see? You see the point? Does your new place accommodate for those kinds of meetups?
Ronald: – Yeah, why not? It depends on what you want, right? Sometimes. Like I would bring my clients to a place where I want to give them that kind of lifestyle. That kind of feel.
David: – Escape game.
Ronald: A little bit. Escape game also.
David: I can lock them up and then I’ll let them escape. Oh ok, that’s a very good idea. I’ll come and lock your clients up. We can do collaboration!
Ronald: If you don’t sign the contract, I won’t let you out.
David: I’ll lock you at the Alcatraz. I got the prison there. We should do a collaboration, you know? Because I can just put some of your flyers in front (of the shop). Our side has quite a lot of volume in terms of people.
Ronald: Oh, that’s possible.
David: Where’s your shop at, by the way?
Ronald: We’ll be located at Joo Chiat.
David: At Joo Chiat. Later, can we have the exact address so we can share with everyone?
Ronald: We can but the place is not ready yet.
David: So it’s still under construction?
Ronald: It would be ready only late August. So maybe you would want to follow us on our Instagram or Facebook for the news of the launch.
David: So how do we follow you then?
Ronald: You can follow us on King’s Cart Coffee on Facebook.
David: Ok, so King’s Cart Coffee.
Ronald: Yup. You can just follow us on Instagram or Facebook. I think we would do our announcement over there.
David: Any Twitter? No?
Ronald: – No.
David: Ok, any TikTok? No?
Ronald: – Unfortunately, not yet.
David: Ok, so here’s the thing. I have a question. Out of so many times and months and years, you chose Covid-19 period to open up a shop.
Ronald: – Yes! Backside itchy.
David: Sometimes I question myself why as well. You know when you told me that right, I remember first discouraging you.
Ronald: – Yes, you did.
David: I did because, you know…Tell me the rationale behind that-Like, why did you choose to open now?
Ronald: There are a few reasons. So before Covid-19 hits, right, we reached a point where we have…We would want to look for a place already.
So it’s about moving and then expanding your…increasing your skill, right?
So that’s pre-Covid-19. But of course, now the entire ecosystem has changed. Our business model has changed as well. So there’s a few reasons. The first reason is of course to The easiest way to return all jobs to our employees is to open up a shop. Create jobs for them.
So that’s one thing: Job Creation.
So we would want our team to be together and that’s one reason why we push for the shop.
The second reason is also of course we still want to upgrade our production facilities. Because the economy has to open up somehow so no matter what you do, I think we should always plan forward instead of you know. We should always look at the bright side of things. Now it’s so low, of course it could go even lower. But I believe that in Singapore and in all strong economies in the world, it will open up again. It’s just a matter of time. So right now, it’s a good time to open for us because we feel that rentals are a little bit better because of Covid-19. A lot of people moved out. The second thing is of course the support from the government. There’s a lot of government support as well.
David: Talking about this, your business and I mean, maybe you could share a bit. In terms of rentals and all that. You know that every crisis, there’s an opportunity. There is always an opportunity. The ones that’s closed are the ones that are holding onto the back end of the stick. Like the one that didn’t close, right? If they can persevere through. Normally, I see companies that are…This is an opportunity, I would say. You get a lot in terms of rental and all that I think there’s a lot of negotiation room for that.
Ronald: -There is.
David: Because in terms of F&B right, one of the major cause is in the rental. Especially… you’re not renting a shop house, is it? We’re running… we’re getting a shop house. So especially during this kind of time, it’s a good time to bargain with your landlord for all kinds of things.
Ronald: I think it’s about being fair for the landlord to the tenant. To me, landlords and tenants are building relationships. – It’s not so much only on dollars and cents.
David: – I believe it’s his business and your business, we must both work together.
Ronald: If you don’t do well, he cannot do well. If your tenant doesn’t prosper, how is he going to pay rent to his landlord? But a lot of landlords don’t understand.
David: landlords please understand.
Ronald: It depends, if your landlord is a company or they’re a wealth management company, asset management company, that’s when things get a bit tricky.
So the big landlords are the ones that have a lot of power. But that’s where they bully the small tenants. So that’s when there’s no balance in that power I would say. So some of the largest malls we know of, right, I mean, it appears in the newspapers on that day these guys have to sign nondisclosure agreements. They cannot negotiate in certain ways. Landlords have a lot of power, they hold back the rebates, etc. during Covid-19 period. So that’s because these are managed by asset management people. Big people, they understand the law. – And then they have a…To them, the shareholders’ profits are more important. But they forget the fact that if nobody comes to their shopping mall, then they can’t even lease out the place.
David: – Exactly.
Ronald: So that’s where I feel as a… Now that I’m a tenant as well, I can understand this part. So I mean I used to work for landlords. So I used to protect the landlord’s interest a lot. But we need to manage the landlord’s expectations sometimes. So yeah, the landlords need to understand the situation also,
So which thankfully actually due to Covid-19, a lot of landlords are now more open to this because I’ve seen shops that are empty for 6 months now. I almost wanted to sign another one because it’s a…but that holds me back. Why didn’t I go with this shop? It’s because prior to Covid-19, they’re asking for skyrocket prices. So what’s going to happen if let’s say they said, “Hey, Circuit Breaker has ended, now we are post-Covid-19, I’m going to increase your rental in the next after your contract ends in 2 years.” That’s the kind of risk businesses face from landlords. So unless the landlord is ok to say “We will not increase our rental by a maximum of how many percent every year. “That may make a little bit of sense. But if you’re a private landlord, and then you signed a 2 to 3 years tenancy agreement and then you want to double the rent after that, hey, these guys have put in a lot of money and effort into building your shop for you. The renovation and all that.- The renovation, they made it up nicely for you and then you bullied them to kick them out. That’s not the right way to do things. So Covid-19 actually is a little bit of a wake up call to some of these landlords who have a shop empty for a long time as well.
David: I think that at the end of the day, right, a landlord has to work hand in hand with the tenant. And I’m actually experiencing that right now. You know, I got the escape game, right? So my rent a month is something like lumped together, more than 5 figures every month. So the landlord was not really very nice at the very beginning and all of the tenants there also got targeted. I didn’t sign a nondisclosure so I can share this, so what happened was that all the other tenants, when the Covid-19 situation came out, when the government announced there’s some kind of rebate kind of thing, right? What actually really happened was that the landlord started to collect rental for the month that hasn’t come yet. So that really pissed a lot of the tenants around. I was there, I think around the 2nd or 3rd of July when the government actually opened up for us to actually go and start a business again.
So it was dormant because the business was not a part of the Phase 2 Circuit Breaker opening. That is an entertainment business. So what happened was that we actually went back. I actually went back and took a look, repaired some of the things because I’m one of the repairmen, supposedly. Since a long time ago. And there are things that cannot be repaired. I spoke to one of the uncles there. He told me that the landlord was really nasty. They are asking for rent when the month hasn’t even come.
It hadn’t even ended yet. Usually, it’s like after that. And if you didn’t pay, late interest. I mean, what’s that? Late payment charge. Like, I think a hundred over dollars. For me, it’s like one percent. So hundred over dollars and I’m like wah! Very nasty, you know? Then again, when they are so nasty to us, we have to be nasty back. Technically speaking, I did not really pay attention. And since the government is helping with the rent and the rebate and all that, I didn’t pay.
What can you do? – That’s the bad relationship already.
Ronald: – So that happens to some of the big malls do that as well. So the nondisclosure includes things and I didn’t sign so I can say, right? But the nondisclosure includes things they need to give discounts to…quite a big discount. So for example, if I’m selling something, I need to give like a 30% discount to get customers to come back. I need to sign a new contract. That means my contract hasn’t ended but we are going into a new contract to lock us down for the next 2 years with probably increased rent in the next 1 year. Before they would release the rental rebates to you. So thank God for the government to come out with this new legislation that says it’s compulsory. If not, that’s where the imbalance in power is. And I think a lot of I would say, the people who are not in real estate, or non-tenants, or non-business owners, they don’t understand this and they don’t see this.
David: I think we are more or less covered that a lot already. It’s really- I mean, a situation where every tenant is facing right now. And that’s why the government is really protecting this because they understand that SME like us, we make up the majority workforce in Singapore.
Ronald: Yes that’s true.
David: And when you decide to actually open a shop to maintain that workforce.
Ronald: – I like sparkling water.
David: – Let’s pour some of this. Let’s pour some of this chocolate…60% cocoa and 40% happiness?
Ronald: I bring you happiness today.
David: Can I have a cup?
Ronald: If you want to drink multiple beverages, sparkling water clears your palette.
David: – Serious?
Ronald: -Yes. Let me open it for you. Yeah, you don’t have nails, right?
David: I have nails but my nails are not made to open this. It takes a coffee expert with coffee expert nails to open a bottle like that, correct? Show me that nail. This is a little bit like medicated oil.
Ronald: Yeah, we double sealed them actually.
David: -What chocolate ah?
Ronald: It’s hard to say what chocolate. More like what grade of chocolate we used.
David: Ok, tell me about the grade.
Ronald: It’s a pretty good grade. Because we actually have a…It’s mixed with milk, already but the cocoa content is about 60% which is quite high.
David: 60% cocoa so it should taste very bitter, right?
Ronald: No. We’ve sweetened this.
David: So again, this is chocolate from King’s Cart Coffee by Mr. Ronald Tan. Right, let me try this now.
Ronald: You guys can have the rest of the coffee. How is it?
David: Of course, good ah.
Ronald: Did it bring you happiness? Do you feel happier now?
David: Why can 60% cocoa taste so nice?
Ronald: It’s milk chocolate. So milk chocolate is a bit smoother. If I gave you cocoa by itself, it would taste too bitter. I tried to make this by myself. At home. We put it in the blender some chocolate and then the milk blend, right? – Clumps together.
David: – Yeah! Why is yours so smooth?
Ronald: It’s the way you mix it.
David: -Wah, I don’t need to eat lunch already. I drank all this, I’m full already. It’s really very filling. It’s very nice. So you mean, we can actually, in the future, go to your shop, sit down and discuss things. Do you have, like, meeting rooms there?
Ronald: No, unfortunately not. So just a single storey and just some tables. We are a roastery there so you can come and see us roast coffee.
David: -Oh, so mainly for roasting?
Ronald: -Yes. So half of the place is taken up by our coffee roaster. So that’s like a production place.
David: I’m only left with Cafe Mocha.
Ronald: -Oh yeah, you’re left with a mocha.
David: Is that the best?
Ronald: Well, it really depends on what you like. – So the best seller.The best seller would be our white coffee, so far. And then those who love to drink black would always go for that Ethiopia because Ethiopia is really very fragrant.
David: -Very special, I will try that again later. Guys, I want to have a little bit of a disclaimer here. I am not a coffee tasting expert. But given my taste buds, I can say I like premium food. Premium food usually has a very premium taste. And these all taste very premium for some reason.
Ronald: Thank you.
David: Made by Mr. Hairy Nipples.
Actually, even in property, some of the agents are even considering getting this from us. But we got more inquiries because some of them want to give out to their clients.
David: This is the best gift ever.
Ronald: We are actually…Our cooler bags are reaching soon so all of these will be packed in like bottles of 6 in cooler bags.
David: And you’re giving them the bags also?
Ronald: Yeah, we’re giving the bags also. So together with the name cards and everything and then we deliver out. – We’re giving out the cooler bags as well.
David: -We’re drinking the Cafe Mocha. Ok, so let me try this.
Ronald: This is with the same chocolate.
David: This one you used the Ethiopian, is it?
Ronald: -No. This one is in Brazil & Lintong. It’s the same beans but we add chocolate inside.
David: Wah, I’m very energetic now.
Ronald: So the coffee aroma should still be stronger than the chocolate. A lot of people like to drink Cafe Mocha with a lot of chocolate.
David: I don’t need to sleep for 3 days.
Ronald: You can actually mellow this down with ice if you want to- But you’re drinking it straight from the bottle so it’s quite strong.
David: Wow, it’s amazing. Starbucks, need to buck up. No pun intended, Starbucks. It’s really good. It’s amazing. Ronald, thanks a lot for all these drinks.
Ronald: You’re welcome. Any time.
David: Let’s say people want to get it. How do they get it?
Ronald: They can buy it from our shop online at KingsCartCoffee.com
David: -So you deliver to them? Ok, Kingscartcoffee.com
Ronald: This is under the category of our ready to drink bottles.
David: So if let’s say, if I were to buy it, when will I receive it?
Ronald: Usually within 1 to 3 days. But usually you would get it within the next day.
David: -Within the next day?
Ronald: Yeah, within the next day.
David: It’s fresh brewed right?
Ronald: Yeah, it’s fresh brewed. So even if you get it within the second day or the third day, it will be brewed on the day itself.
David: So when people ordered, then you make.
Ronald: -Correct. So we consolidate the orders for the night, the next day we make. Then we deliver. So it’s really, really fresh.
David: Isn’t it, like, very manual. Very resource-intensive?
Ronald: Oh it is, definitely. But for all good things in life, some of them have to be this way. There’s no shortcuts in certain things.
David: I think the moment you compromised, you’re compromising a lot on integrity as well.
Ronald: It is, yes, because as compared to your local coffee, this is definitely not cheaper than your local coffee. But we would then need to then give high quality (products). Better grade, we double sealed the bottles. We make it fresh on the day. We chill it straight away. We even brew it overnight for the black coffee. So it’s time consuming and all. That’s what you’re buying.
David: Actually, I was thinking about how you said that this is a very good gift.
Ronald: Yeah, so many people are working from home now.
David: So for any property agents, right, who wants to build relationships, I don’t think just sending a flyer or a mailer would cut it.
Ronald: Yeah, nowadays, it’s no longer…The ball game has changed pretty much.
David: I look at this as a prospecting tool. Because I’m a… You see there?
Ronald: Yeah, I saw your books.
David: So the book, majority we talk about, we talk about how we can use the power of the internet to reach out to individuals who are likely going to buy property and then to in return, help them buy their property and so on and so forth. And that will in return, help the real estate agents become very successful. And that’s what the book is all about. It’s about prospecting. Ok, so in real estate, prospecting has this part called Management of Existing Relationships. Meaning to say, your friends, your relatives, your ex-clients.
Ronald: Yes. Correct.
David: So at one point in time, I was sending…You know Chinese New Year?
David: Chinese New Year, right, I will buy those kuehs. All the pineapple tarts and all that, right?
Actually, it’s not cheap, you know?
Ronald: No, it’s not.
David: So per stack, $60. I bought one stack and I sent manually, really, serious, manually to all of my clients. Ok, and you know what? I got close from there.
David: I got closings from there. And after that, Ok, following year, I never do. You know why? So tired. So the question is this. You deliver for people. As in your guys will deliver for people. Can you do a gift card or something like that?
Ronald: We can. So you provide us with the cards, the gifts, right? We put it together with the bag.
David: So we provide you with the cards or we give you the information and you will print it out.
Ronald: Usually, they would give us because if we print out, it might not be what you want. And for us to print also, unless you got a very large quantity. Yeah, because usually for this kind of gift, we try to be as personalized as possible. If you give a generic card to individual clients, sometimes one look, you know it’s pretty generic. So for real estate, when personal relationships are very important, you could give something more personalized. You pass it to us, we pack it and send. So they will have to pass you physically?
Yeah, they can drop by our office and pass us. I mean if it’s just one, then they would rather even deliver it themselves.
David: So if there’s more, would you do the printing for them? Maybe a simple piece of paper that says…
Ronald: Yeah, that’s fine. We can do that as well. Put it into an envelope for you and then together in the…
David: Yeah, you know like if that is the case, how much does it cost by the way? Like all that I drank. 6 bottles with delivery?
Ronald: Just $36.
David: Rip-off.- Yeah, it’s very cheap. Yeah, they are ripping you off.
Ronald: Yeah, it is. Only during this period of time, we’re doing…
David: You mean per bottle of that is $6?
Ronald: Yes, per bottle is $6.
David: So little?
Ronald: Yeah and includes delivery.
David: Oh my god. So oh, wow. Yeah, it’s not expensive. I thought it’s like $50-60 or? – No, for now…For relation, building relationships and the packaging and also the taste and everything, I think I will buy.
Ronald: It’s during this period now, because of Covid-19, also because we want to support the people who are working from home and then, you know, when you cannot go to your cafes and all, that’s why we are doing this.
David: So that they can game and at the same time, right? You know, our clan is called what? Work From Home. “Work From Home SG”. That’s our clan in Dota.
Ronald: For now, we’re doing free delivery. So until our shop is ready, then the delivery charges might increase a little bit. So we’re going to do like $3 to $5 depending on the location and the delivery fee.
David: Just to cover cost only.
Ronald: That’s really just to cover the cost. But you can self-collect, If you self-collect at our shop, then it’s free. But for now till August, end of August actually, it’s going to be free delivery.
David: So it’s like regardless of volume in the future also it’s going to be $2 to $5, each location. Yeah, it’s just to cover the transport cost. So you have to hire a driver? You have to pay for the car?
Ronald: We already have a car.
David: So that’s the problem with business. The Sunken cost. Yes, it’s very high.
Ronald: But consumers, they seldom see this, you see?
David: They don’t. They think that $2 to $5 is a lot. But this guy, right, drives your car which there is a depreciation cost to that. There’s petrol to that. And the driver has a salary for him. And the time. And then he takes this coffee, right, he goes upstairs, passes it to you in hand and says “thank you very much” for $36. Oh my goodness, I would never do that in my life.
Ronald: If you ask me, right? I actually think that F&B in Singapore is really cheap. Because how competition is, right? It pushes all the prices down so much that actually why F&B suffers so badly during this period? It’s because their margin is so thin.
David: But for coffee, you know, like, you can become really branded. Like what you are doing right now, you are taking really quality things and putting them into this bottle. I seldom see people do this kind of thing. It’s like with love and you really put down all the ingredients over there in front of people and tell them what it is all about. For the coffee connoisseur, right? I think they will be able to understand what is inside here, seriously. And as for yourself, I think you are really a coffee lover otherwise, you wouldn’t have… Do you intend to come up with new flavours?
Ronald: Maybe. Once we have more beans. More different beans.
David: You can look for one person. Mr. Bean. Mr. Bean will give you all the beans. That’s damn lame eh. That’s Lim’s joke. Lim is definitely going to Lim, if you’re watching this right, that joke is from you. Actually, I learned all my lame jokes from him. Only with friends, I can talk so happily. Really seldom. You know, I think we have taken quite a lot of your time. You are a busy man. I also don’t want to hang…take up too much of your time, by the way. So when you are open in Joo Chiat, where is it?
Ronald: It’s at 328 Joo Chiat.
David: Joo Chiat Road or what?
Ronald: Joo Chiat Road, correct.
David: The renovation, do it nicely. So that leaders and their associates or real estate, you know… Make it, how about -Make it like a real estate agent’s hang out ground? That’d be so cool.
Ronald: I’m not sure if that’s a good idea. I was a real estate agent before, I would know.
David: The thing about real estate agents is that it is quite stressful.
Ronald: Oh yeah, definitely. We want to make it into a place of a…It’s a bit more lifestyle. So if you even have breaks in between where you want to bring your client here or you just want to come here yourself, that’s the kind.
David: Do you serve anything else other than coffee?
Ronald: We are going to have baked goods as well.
David: Like bread?
David: Ok, so I understand. So it’s kind of like a cafe kind of setup, basically?
Ronald: We’re still specializing in coffee. So even if you come in the evening, we got different coffee cocktails ready that probably you can only find here.
David: Wah, you make me want to go.
Ronald: So yeah, coffee and alcohol.
David: We should do an outing there. How about that? Our own office outing. Let’s go to Ronald there and we drink all his coffee. Ok, let’s do that. Thanks for coming today. So listeners, watchers, viewers, if you’re watching this right now, please support my friend. King’s Cart Coffee. Not just any ordinary coffee, which by the way ,I’ve never tasted coffee like that before. And I believe that anybody watching this video right now should try it. It cannot be that you purposely make until so nice just for today?
Ronald: Of course, not.
David: So it is at 328 Joo Chiat Road or if you want to get it online, you can get it at KingsCartCoffee.com
Right, KingsCartCoffee.com and he will deliver it to your house in 1 to 3 days, brewed on the day itself
and within 1 to 3 days, brewed on the day itself and what else? For $36, he will bring it to the doorstep,
not him but his staff will bring to the doorstep and pass it to you.
Ronald: Well, it might be me nowadays.
David: So busy, right? And then, pass it to you. Just for $36. Or you can order it for your clients. And your clients will, I think if you give a hundred sets of this, $3600 dollars for example.
If you give to all of your clients in the past, I don’t believe you cannot get a case out of that. I really don’t believe it. You would just get 1 case, enough.
Ronald: We actually do have more people buying for other people than for themselves at this point in time which is quite surprising.
David: I’m going to be one of those. I don’t have clients anymore; but I would buy it for my students.
Ronald: – Why not?
David: Ok, fantastic. Students, if you don’t receive your coffee, come find me. I will make sure to get you some bottles of coffee. Ok? So thanks a lot, Ronald for your time and I will see you tonight, Mr. HairyNipples. I will see you. And if anybody is keen to join us in Dota, his handle is HairyNipples, mine is 4896. He was asking me.
Ronald: Yeah, what is 4896?
David: Sibeh kao lat.
David: Because my Bristle back is very good. Ok, it’s been a pleasure. Thanks a lot, Ronald!
Ronald: Thank you!
David: Thanks and we will catch up again. Maybe after you set up your shop, you come back again?
David: -Yeah, thanks a lot! See you guys! Take care.