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There's no question that Starbuck's is overpriced. The problem is that if you want a good coffee drink (not just regular coffee), they have a monopoly on this in many areas - i.e., in most cases Starbucks is the only coffee bar you may see around.
Conversely, I was in Portland, OR & Seattle, WA on vacation back in June - though there were the ubiquitous Starbuck's all over, each city also had a lot of other smaller coffee places that I had never heard of in which the coffee was less expensive - and in some cases better - than Starbucks.
Starbucks is hardly overpriced. Have you looked at their financial statements and those of their primary competitors? They are losing business to local gourmet coffee shops but at the same price levels.. but not at a rapid rate. I don't understand how you can possibly justify that their product is overpriced in the market given the revenue they generate.
I like Dutch bro's much better than starbucks now.
.... Oh, yes. Excellent Americanos, etc. No preservatives either, which Starbucks use because they've grown to be so huge of an enterprise. The commitment to no preservatives is precisely why Dutch Brothers will remain just in Oregon, a manager of theirs shared with me years ago. They don't merely sell brewed coffee & serve treats, they establish relationships. Fine business model, in my opinion.
.... For well over 6 years now my a.m. routine is to use a small backpacking hand grinder, utilizing fair trade, shade grown, organic coffee beans for those first magic cups of joe. 15 cents/16 oz. cup including power, takes about 10 minutes.
Starbucks can charge whatever they want and people will still go and get their fix...
.... Indeed they will. While sojourning in Portland, Oregon a few years ago there was a Starbucks next to a Red Wind Shoes store. The manager & I were standing outside chewing the fat, so to speak, & had observed this guy with a huge smile zooming up to park, quickly trotting into Starbucks to grab his next cup of fancy coffee... his third of the day that late morning, or so said the manager who sees him come & go 3, sometimes 4x/day. @ $5 a whack, that adds up to some serious (Star)bucks. Just $5/day 5 days/week, one spends $1,300/year! Granted, there remain plenty of people that can afford that & not blink. Not me. 2 cups/day ($.15/pint) x .30 = less than $110/year. Good dollar value... & gives me something productive to do while yawning.
I went to Starbucks the other day for a venti vanilla latte and when the barista rung me up, I was surprised to be charged $5.03 for the 20 oz. drink. The price had gone up again. Going over the $5.00 mark made it mentally seem much more than when it was under $5.00 a few months ago when I last purchased the same beverage. Fortunately I don't go there often due to expense and not caring too much for the taste. But it's a nice change from drinking my drip Folgers at home almost every day. I think. Now I'm not so sure. Do you have any coffee alternatives, at home or otherwise? In Alaska, we have a lot of competition to Starbucks, but here, Starbucks has a lock on the java market. My home drip brew is good, but a change would be really nice.
$1,835.95 a year is not that much j/k.
I like Peets brewed myself better than a $2.20 (Seattle) cup of Starbucks.
I think Starbucks coffee is bitter and tasts like crap because of it. Lighter blends are available as you know, but they don't pack the same punch. Then there is the "having to go to Starbucks, wait in line, etc). It does give me a buzz though!
Peets can do both. Give me that rocket boost and taste smooth. Safeway/Vons has Peets on sale 1 time each month, about $8.xx bucks a bag. I get about 4, otherwise its about $12 bucks a bag.
Whoever says that Starbucks isn't overpriced is mistaken. If you go into any other coffee bar, the same/similar coffee is almost always less than Starbucks' prices.
Whoever says that Starbucks isn't overpriced is mistaken. If you go into any other coffee bar, the same/similar coffee is almost always less than Starbucks' prices.
On the contrary, anyone who says that Starbucks is overpriced is quite ignorant.
Their pricing strategy is fairing well in the market and is not hindering their sales. If you do a traditional SWOT (marketing 101) analysis on Starbucks, you'll see that pricing does not fall under one of their weaknesses.
Actually, I'm ignoring these articles/statistics, and paying attention to the comparison between their prices & the prices I see at the other coffee bars I've been to recently. Also, as was said, Starbucks just raised their prices recently.
Anyone who doesn't think Starbucks is overpriced is an ignorant tool.
And, yes, there are coffee bars other than Starbucks. They do exist, and aren't just a myth. You just have to look for them.
So you've decided to ignore the entire study of marketing? You can't use a marketing term like "overpriced" and totally ignore the fundamentals of pricing strategy that determine whether a product or service is overpriced in the market.
As the previous poster mentioned, you can do SWOT analysis on Starbucks and come to an interesting conclusion.
I also suggest you read Dr. Newman's research on pricing strategy and consumer behavior around coffee shops. It was published in Harvard Business Review in 2014.
Also, there's no reason to throw out insults and call people names. Are you 5?
Last edited by nancy thereader; 07-18-2015 at 01:32 PM..
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Excellent Americanos, etc. No preservatives either, which Starbucks use because they've grown to be so huge of an enterprise. The commitment to no preservatives is precisely why Dutch Brothers will remain just in Oregon, a manager of theirs shared with me years ago. They don't merely sell brewed coffee & serve treats, they establish relationships. Fine business model, in my opinion.
