4 ms·
Why does that matter? It still requires (a) SBUX to do work and (b) has impact on SBUX. What I mean by later : if I am someone who didn't tip before the CC syst
by xyzelement 4y ago
Why does that matter? It still requires (a) SBUX to do work and (b) has impact on SBUX. What I mean by later : if I am someone who didn't tip before the CC system but now I do because it's easy, my cup of coffee has gone up by a buck.
On the margin at some point it's going to just be the same as a price raise (coffee is 5 bucks rather than 4) which obviously impacts business at least somewhat.
- tssva 4y agoYour logic that the cost of a cup of coffee has effectively gone up by $1 because you have voluntarily given a $1 tip which you didn't but could have given prior is completely illogical.
- xyzelement 4y agoIt's tightly logical but you are failing to follow. Credit card integration obviously generates more tipping, otherwise we wouldn't be talking about it. This is because once they see the prompt, many people think of the tip as mandatory (vs may not have thought about it) - or they don't have cash but now can tip. A good thing. I always tip well. Now coffee becomes a thing you tip for, for these people. Totally voluntary. For those people, this raises the effective price of a cup of coffee. Getting Starbucks now becomes a costlier habit. At the margins this can drive someone to go elsewhere, skip, etc (basic supply and demand.) This may not apply to some given individual but across millions of customers over a long time price including tip obviously affects quantity demanded.