5 ms·

Unlikely to be cost-plus pricing. It's about what the market will bear

• ihodes 16y ago
  Right. It would have nothing to do with the tangible increase in labor and materials: electricity, space, more grounds-per-oz of coffee. Come on, really? Yes the price is dependent on what people are willing to pay, but there is a very real and legitimate reason for the drink to cost more.
  • mynameishere 16y ago
    Come on, really? Umm, yes? A lot of coffeeshops will charge say 1.50 for an Americano, but 50 cents for an additional shot of espresso in a normal coffee. The only explanation is: That's what the market will bear.
  • techiferous 16y ago
    Come on, really? Yes. There's a great explanation from The Undercover Economist. It's a great read. Highly recommended: http://www.amazon.com/Undercover-Economist-Exposing-Poor-Decent/dp/B0018SYWWU http://www.amazon.com/Undercover-Economist-Exposing-Poor-Dec... Update: Here's a link to the explanation: http://books.google.com/books?id=YAA8hPloNRcC&pg=PA30&lpg=PA30&dq http://books.google.com/books?id=YAA8hPloNRcC&pg=PA30&#3...
    • davi 16y ago
      This is a discussion of what the market will bear for Fair Trade branded coffee, not what the production costs for iced coffee are.