In 2009, Starbucks revamped it pricing structure. Starbucks redesigned its menu to feature lower priced brewed coffees and offered promotions on its drinks. In the struggling economy, Starbucks needed to think of a more practical plan in order to keep its customers from McDonald's cheaper brewed coffees and Lattes. Instead Starbucks increased the prices of its higher end and more complex drinks. The Frappuccino and Carmel macchiatos were raised by 8%, because dun kin donuts and McDonald's cannot compete. Starbucks is using the lack of competitors and gaining profit from its most devoted consumer of the drinks. 
Starbucks pricing may be considered unnecessary for more practical people, but this is America, and Americans are fascinated by the term of luxury. Starbucks sells itself on luxury and whether or not people can really afford it, they will still buy it. When a customer buys a cup of quality, it is seen as a small investment for quality. People who are all about luxury will never have a problem dishing out the extra bucks to receive it. Starbucks is aware ofthis and therefore can raise the price, because they have a strong net of devoted customers who may complain about the price increase, but you will see them with Starbucks the next day.
Prices for the smallest coffee:
Coffee of the day/ regular and decaf$1.40 $1.60$1.70
Carmel Macchiato$2.80$3.40$3.65
Plus Tax
Very good post Cassie.
ReplyDeleteprof. evans