MENTORING ON COST OF GOODS SOLD (COGS) CALCULATION AND DIGITAL BUSINESS STRATEGY FOR MANGGARAI COFFEE BEAN PROCESSORS

Abstract

This community engagement initiative aims to enhance the financial management capabilities and digital market competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in the Manggarai coffee processing sector. This group is pivotal to the local economy but often faces significant challenges with accurate product costing and with using digital platforms for marketing. The target audience includes small-scale coffee processors and farmer groups in Manggarai, Flores, who generally possess high product quality but lack formal business management and digital marketing skills. The implementation methods included a participatory mentoring approach, including face-to-face workshops, practical simulations to calculate the Cost of Goods Sold (COGS), and interactive training on digital branding and the use of e-commerce platforms. The results indicate a significant improvement in participants' ability to accurately calculate COGS, enabling them to set more competitive and profitable prices. Furthermore, participants successfully developed basic digital marketing plans and established online presences (social media and marketplaces), resulting in initial expansion of their market reach. This program highlights the critical need for integrating financial literacy with digital skills to enhance the resilience and scalability of local commodity producers in the global market.