Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Starbucks Prices the Coffee Experience
In this episode of Pricing Power, Lucas and Luna unpack how Starbucks sets prices for its coffee — from the $2.75 tall drip to the $7.50 venti Frappuccino. They walk through the three pillars of Starbucks' pricing strategy: the real-estate premium for prime corners, the customization surcharge that turns a latte into a $6 drink, and the loyalty program that masks price increases. Lucas explains how Starbucks uses its mobile order data to test price elasticity in real time, and why the company can raise prices year after year without losing its core customers. Luna brings in a comparison…
The skinny
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