My drink cost me $4.44 for a medium. People who brew their own coffee might laugh at a price like that considering they probably pay about 75 cents per cup. What I realized is that although Starbucks coffee is more expensive you're paying for several different things.
The smallest cost has to be the cost of the coffee itself. Starbucks coffee isn' the highest quality, that's a pretty well known fact.
Another cost built in is the cost of labor provided by the worker. Obviously Starbucks has to pay the wage of that worker so some sort of the cost can be attributed to that.
Yet another cost is the cost of convenience. Starbucks drive thru makes coffee on the way to work a possibility if you aren't up in time to get a pot going at home.
One more cost that may or may not be real is the cost of variety. Starbucks offers more options than you can realistically make at home so to a certain degree you're paying for all the options given to you.
Yet another cost is the cost of convenience. Starbucks drive thru makes coffee on the way to work a possibility if you aren't up in time to get a pot going at home.
One more cost that may or may not be real is the cost of variety. Starbucks offers more options than you can realistically make at home so to a certain degree you're paying for all the options given to you.
While these four costs probably don't add up to $4.44 there are probably dozens of other costs. One cost I don't think think people notice is the cost attributed to your experience.
When we (figuratively speaking) go on a date to Starbucks and our coffees cost $4.44 and $5.01 we sort of joke about the price. Some portion of that cost has to be attributed to the atmosphere, though. When you go to Starbucks you're paying for the contemporary, alternative vibe given off and for the place to sit and enjoy your coffee. Whether it's inside on a comfy couch or face to face outside in the sun you pay for the chance to interact. (Some might argue that Starbucks has a pretentious feel to it, but honestly if you're thinking that far into it maybe you should be grinding your own beans at home...damn hipsters.)
It's up to you to decide if the prices are fair or not. (Personally they seem fair to me, the only bitch is a 65 cent up-charge for soy milk.)
Maybe if you think the prices are unfair you need to pick your company more carefully. If you think it's too expensive when you're by yourself maybe you aren't a fun enough date and if it's too expensive with someone else then then you need to find someone worth the price.
NP: Falling In Love At A Coffee Shop- Landon Pigg
You are exactly right buddy. Starbucks' CEO grew up a poor child, so when he started his company, he vowed to do his part as a good humanitarian as well as a business owner. We see this come to fruition as he pays high salary and gives medical benefits to even part time workers. Additionally, he intentionally overpays for low quality coffee beans. McDonald's uses higher quality beans than Starbucks, but charges under $1 for a cup of coffee. But, look at the ambiance of a place like McDonald's and consider how much they pay their workers and it's easy to see how they can price their coffee as they do. I think in the future, with the increasing number of alternative coffee places like McDonald's and Dunkin', Starbucks will be forced to lower their prices through lowering of wages and removal of benefits.
ReplyDeleteWell put Kleezy. Apparently Professor Atkin taught you very well.
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