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I used to go to Starbucks every morning. But they got too expensive. Their product always has had a ridiculously high profit margin, with the cost of preparing
by droithomme 15y ago
I used to go to Starbucks every morning. But they got too expensive. Their product always has had a ridiculously high profit margin, with the cost of preparing a cup being under 10 cents and selling for $1.49, then $1.59, then $1.79, now it is $2.19. Starbucks price should not have been raised in this economy just because raw inputs went from 10 cents to 13 cents. Finally the customers, well myself at least, said this is absurd I am being ripped off here, and I bought a good espresso machine for home. Come to think of it though, this is all pretty irrelevant since it seems they are still packed with enthusiastic customers most of whom are renting wifi for the price of coffee. Hey, if the market can bear it, jacking up your prices continually is not the worst plan.
- endersshadow 15y agoWhat about salaries, benefits, and other costs? I think the article is placing too much importance on the price of beans rather than the prices of other overhead (including fuel and labor).
- ImprovedSilence 15y agoLittle known fact about Starbucks cup sizing: the menu goes 'tall', 'grande', 'venti', but you can still order a 'small', it's not on the menu, and costs like $1.12 or something.
- chc 15y agoI think you mean "short." If you ask for a "small," they will probably offer you a tall (for the same reason that somebody requesting a Big Mac at Burger King will be offered a Whopper instead).