Why Is Starbucks So Expensive?

WHY?...

ok i love starbucks and the main reason why its expensive is because of quality.

but what frustrates me is that why are the prices that high?...i think they wud get a lot more customers if they decreased the prices slightly.

cos i know for sure that it costs them under a £1 to produce a frappucino but yet it costs £2.90 with cream to purchase.

so that is why i only purchase occaisionally...if the price was around £2 then i would probably go everyday =D

Reply 1

Logan

4

demand... people still create the demend even though the prices are high... if nobody would go to starbucks then theyd lower prices... or even shut down

Reply 2

Juwel

18

Because enough people will pay that price that it becomes the profit maximising price. It's not about a greater quantity, just the right quantity.

Reply 3

Stick Man

11

I don't think your average Starbucks would have the capacity to handle many more people anyway.

Reply 4

kobrakai

1

Because Mr Schultz says so.

The lengths people will go to just to get to a Starbucks is actually insane though, despite it costing so much.

Reply 5

doctormbbs

They can charge high prices because they know people will buy them no matter what...

Reply 6

Thud

17

EconomyMan

WHY?...

ok i love starbucks and the main reason why its expensive is because of quality.

I love that mentality: it's expensive therefore it must be good quality. :rolleyes:

It costs them pittance to produce a frappucino, they pay the growers **** for their beans, and then wack up the prices because they know dumb people will still buy their products. As to it being good "quality", do a little research into that :wink:

burnt poor quality cheap beans anyone?

buy fairtrade coffee. :smile:

Reply 7

Metrobeans

19

Starbucks coffee is rather inelastic. (ooh, get me with my economic phrases! :biggrin:

)

Reply 8

Juwel

18

dk9

Starbucks coffee is rather inelastic. (ooh, get me with my economic phrases! :biggrin:

)

You mean it's price inelastic :p:

You have to specify the elasticity :biggrin:

Reply 9

hixey101

their mango and passionfruit fraps are pretty good

Reply 10

L i b

19

Starbucks is terrible, in my opinion. And I like my coffees.

Reply 11

Stick Man

11

White Chocolate Mocha for me :biggrin:

Reply 12

kateykat

Thud

I love that mentality: it's expensive therefore it must be good quality. :rolleyes:

It costs them pittance to produce a frappucino, they pay the growers **** for their beans, and then wack up the prices because they know dumb people will still buy their products. As to it being good "quality", do a little research into that :wink:

burnt poor quality cheap beans anyone?

buy fairtrade coffee. :smile:

Yeah but he probably meant in terms of taste. If your coffee tastes watery and stale then it's crap, but it's always creamy and tasty at Starbucks which therefore = good quality.

Reply 13

Evil-Tuna

2

Lib North

Starbucks is terrible, in my opinion. And I like my coffees.

I completely agree to the first part. But I dont like my coffees. But it's not because of that fact that I despise Starbucks

Reply 14

UngrownUnknown

In a business it's not the number of customers that matters, its the amount of gross profit. As each outlet can only serve so many people at once. They have made their products the price they are to maximise the profit they make with the resources (seats and staff) they have.

Reply 15

Mad Vlad

19

It's because Dr. Evil owns it.

Reply 16

*Sparkle*

17

It's an image thing.

Stick a starbucks and a cafe nero next to each other and people will always go in the starbucks, it's why carfe nero and costa have become so expensive.

Reply 17

mipmapped

13

HAHAHAHAH!!!!

Starbucks? Quality?!

AAAAAAAAAAAAAAAAAAAAAAAAAAAAAHAHAHAHAHAHA.

Frappucino's aren't coffee either. They're milk, sugar and ice, with a little brown colouring, and some coffee flavour, so that people that can only appreciate sugary ****e can show the world how sophisticated they are with their 'coffee'.

Fairtrade all the way.