The First One’s Free (Or Is It The Second?)

January 23.2008 at 5:04 pm 1 comment

a cup of starbucks

so starbucks, which initially entered my home town as the big bad wolf and quelled the natives shortly thereafter, is testing out coffee sales for a buck. two things come to mind: (1) how small are the cups? and (2) what does it mean for fair trade? i mean if starbucks can offer coffee somewhere around the price where it probably should have been in the first place, what does it say about previous price offerings? economists, please don’t pitch the obvious supply and demand responses.

given that starbucks sort of bit off of the mcdonald’s approach to being everywhere (come on, how many starbucks are on your neighborhood corners?), it seems fitting that they are providing some competition (i am not talking about quality for all of you caffeine geeks).

frankly, as long as i can operate my third office without more than the occasional gripe over laptop cord outlets and table space, starbucks will probably keep my business. i am pleased to know i don’t have to drop $5 a pop every hour just to stay there though. can we do something about the rip off of paying for wireless at the so-called hotspots? i’d probably pay a buck.

Entry filed under: business. Tags: , , , .

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1 Comment Add your own

  • 1. Steve Rosenbaum  |  January 23.2008 at 5:28 pm

    This is all part of the basic crash course in marketing.

    When everybody is oftening a la carte, you bundle it all together. When everyone is bundling, you offer a la carte.

    So when everyone offers Big cups, you offer small cups. When they change to small cups, you offer big cups.

    It’s really simple. Everyone is now a marketing genius.


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