Starbucks’ $7 Coffee

Posted on January 8, 2013 by bermanevansretail
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.
Click the photo to read more.

Photo by AFP /GETTY IMAGES
Post suggested by KCJ

 

Posted in Part 1: Overview/Planning, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer | Tagged , , , , , , , , , | Leave a comment

Knowing When to Close Up Shop

Posted on January 7, 2013 by bermanevansretail
One of the most painful decisions for any retailer involves deciding whether or not to shut down a business. This is especially true for an entrepreneur who has given his or her all to keep the business running.
According to Nellie Akalp, writing for the American Express Open Forum: “Someone once told me that a sign of a successful entrepreneur is the ability to know when it’s time to throw in the towel and move on. It’s true that one failed business doesn’t define an entrepreneur. The end of one venture often signals the start of something new … the beginning of the next exciting journey. As a result, it’s critical to identify the signs that it’s time to shut the doors on a languishing project. Closing a business doesn’t just mean selling your assets and calling it a day. You’ve got to go through the right steps to ensure your business is legally closed and you’re primed for what’s next. Deciding to pull the plug and move on is one of the hardest decisions to make. After all, the business is probably a product of long nights, personal sacrifice, and determination. While it’s a personal decision with no easy answer, here are some common questions to help you know if the time is right to close your business.”
To read Akalp’s key questions to consider, click the photo.
Post suggested by KCJ

 

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 4: Store Location Planning, Part 5: Managing a Retail Business | Tagged , , , , | Leave a comment

Objections to Wal-Mart’s Price Comparison Ads

Posted on January 6, 2013 by bermanevansretail
We know that Wal-Mart is already the most dominant retailer on the planet. So, competitors get particularly upset when they believe that Wal-Mart is involved with unfair trade practices. A case in point is Wal-Mart’s recent use of price comparison ads.
As reported by Ann Zimmerman and Shelly Banjo for the Wall Street Journal: “An aggressive Wal-Mart  advertising campaign that claims better prices than specific, named competitors has rankled rivals, which have complained to attorneys general in more than half a dozen states. The targeted retailers, including Toys “R” Us, Best Buy, Bed Bath & Beyond, and several regional supermarket chains, claim Wal-Mart cites inaccurate prices and compares differing products, such as laptop computers with separate specifications. Wal-Mart defends the ads, begun last year, as accurate. ‘We know competitors don’t like it when we tell customers to compare prices and see for themselves,’ Wal-Mart spokesman Steven Restivo said. ‘We are confident on the legal, ethical, and methodological standards associated with our price comparison ads.'”
What do YOU think?
Click the photo to read more from Zimmerman and Banjo. Click HERE to see a video clip.


 

Posted in Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Video Clips (non-career) | Tagged , , , , , , , , , , , , , | 6 Comments