The objective of this study was to determine the impact of bean grain quality characteristics on market price. The data was collected from retail markets in Tanzania. Hedonic pricing provides a statistical estimate of premiums and discounts. Implications for development of bean markets include : i) extension agents should identify cost-effective ways to educate producers on targeting urban market niches based on consumer preferences for varieties, ii) breeding for bruchid resistant beans and use of appropriate storage technologies would alleviate the problems of storage damage, and iii) requiring a portfolio of grain quality characteristics to fit consumer preferences in local markets.