The Economics of Starbucks

[pokerfan]

To the extent that economics is a science, I suppose this belongs here. I'm not a fan of Starbucks but the principle at work is seen everywhere as the author notes...

Here's a little secret that Starbucks doesn't want you to know: They will serve you a better, stronger cappuccino if you want one, and they will charge you less for it. Ask for it in any Starbucks and the barista will comply without batting an eye. The puzzle is to work out why.

<...>

The practice is hundreds of years old. The French economist Emile Dupuit wrote about the early days of the railways, when third-class carriages were built without roofs, even though roofs were cheap: "What the company is trying to do is prevent the passengers who can pay the second-class fare from traveling third class; it hits the poor, not because it wants to hurt them, but to frighten the rich."

The modern equivalent is the airport departure lounge. Airports could create nicer spaces, but that would frustrate the ability of airlines to charge substantial premiums for club-class departure lounges.

Starbucks' gambit is much simpler and more audacious: Offer the cheaper product but make sure that it is available only to those customers who face the uncertainty and embarrassment of having to request it specifically. Fortunately, the tactic is easily circumvented: If you'd like a better coffee for less, just ask.

http://www.slate.com/articles/arts/everyday_economics/2006/01/starbucks_economics.single.html

[DonCoquixote]

1. here is an example

Look too see if your starbucks has a french press. If you do not know what oen is, it looks like a glass tube had a baby with a spring. Now, most Starbucks do se;; coffe made in the frnech press, which has several advantages:

It is cheaper (usually about 2-3 bucks as opposed to the four or 5 dollar monster drinks)
It makes enough coffee for two (great for companions..It is also sometiems sold as the "French press double"
the french press simply makes more flavor as it brews longer (it is left on the table, let it alone for two minutes, then press the plunger)
and you can get ANY coffee in the store, even those fair trade blends they do not seem to focus on as much.

Here is a video:

And yes, most starbucks have them, but you have to ask, admittedly, most people are idiots and fear the french press.

[DonCoquixote]

3. Note

at starbux, the coffes is already ground, which takes most of the time out of this, and the frnech presses there are made with glass, not steel, still, if you take the time, your wallet and your tongue will thank you.

[rfranklin]

6. I know a guy whose finger was amputated by a French press...

When he gives someone the finger it looks like a W.

[DonCoquixote]

8. ha ha

very funny (not)

[elleng]

2. Science? Joke?

MANY know about asking for 'short;' no secret.

[OffWithTheirHeads]

4. News to me but I tend to eschew Starbucks for the mom n pops.

[elleng]

5. Just started to return there,

due to a bit more disposable income, and I really like their raspberry scones and tarragon chicken sandwiches.
McD's is often good enough for me. Not aware of any mom n pops for coffee around here.

[DonCoquixote]

9. Not many mom and pops

Though it depends on your area. There is usually some regional chain

[Scuba]

10. Little known fact: You can get a twenty-five cent cup of coffee at Starbucks....

.... It costs $3.75.