Starbucks has consistently offered a distinctive retail experience and a unique product mix — along with premium pricing. But, how much will customers be willing to pay for “just a cup of coffee”?
Recently, Starbucks has set a new standard for its coffee pricing. As reported by Josh Sanburn for Time: In late November, “Starbucks began selling a cup of coffee for $7. This may seem ridiculous, but it’s the logical next step of the chain’s long-term marketing strategy: To convince consumers that a product that used to sell for less than a buck is in fact worth much more. In almost 50 locations throughout the Northwest, coffee drinkers can find a curious item next to peppermint mochas and gingerbread lattes: Costa Rica Finca Palmilera, a hard-to-grow bean also called ‘Geisha’ that sells for $7 for a ‘grande’ size cup of coffee and $40 for a half-pound bag.” Yes, that’s $40 for a half-pound bag of coffee.
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