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+8 votes
Why does Starbucks Coffee have a high price tag?
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simple...supply and demand. People are willing to pay for it, so they charge as much as they can without decreasing how many cups they sell. It's as much about the perceived prestige and experience as it is about the coffee, although it is good.
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they have an excellent reputation worldwide, and after all, coffee is addicting.
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The actual coffee is 25 cents. Add in a dash of yuppie bourgeois self-importance for $2, and a sprinkling of the corporate branding of America for $1.75 and you've got yourself a 4 dollar cuppa joe.
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Profit.
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They use roughly TWICE the amount (two tablespoons for each 8 ounces water) of first class coffee beans per cup than the average american does in the home, and grind the beans themselves each day. (if you don't beleive me, try it yourself!). Then of course there has to be a profit or they couldn't stay in business. Most people who enjoy coffee could do it at home for much less as I've mentioned, but when you are out and about and want a perfect 'cuppa joe' Starbucks fits the bill. Sure, some people are just plain snobs who want to impress by being able to spend so much on such a simple luxury, but really, there IS a diferrence between the typical 'swill' we have all been familiar with, and good quality coffee made properly.
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because its so damn good!!!
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It's worth it if you have the money to burn. Like Cheesecake Factory cheesecake. like 40 bucks a cake? Sure... :)
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cause it need profits to cover the rents fee. the cofee beans might be special ones. then the coffee is nice and it quite high class
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Its all about perception. Look at wine. You can buy a $8 bottle of wine or a $80 bottle of wine. Some people will pay the $80 because they believe it tastes better. There was a test done in New York last month where they gave vodka samples to snobs. 95% of the time they preferred the cheaper one.
by (4.5k points)
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Once word: SHAREHOLDERS. The market has expectations and SBUX serves only to meet them.
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