Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Starbucks Prices the Latte Premium
Starbucks charges four to five dollars for a latte that costs pennies to make. In this episode, Lucas and Luna unpack the pricing machinery behind that premium: real estate siting, store ambience, the third-place promise, and the psychology of customization. They trace how Starbucks uses its app to personalize discounts and nudge spending, and why its loyalty program quietly shapes what you pay. They also weigh the risks of raising prices too far, especially as more customers balk at the five-dollar mark. A tight look at how a cup of coffee became a status signal and a data stream.
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The skinny
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