Friday, January 30, 2015

I just gave Starbucks... (with corrections)

I just gave Starbucks... a bunch of some money.

Each time I would go to Starbucks and get my favorite Mocha Latte.  Each time I would lament throwing the cup, lid and cozy away.  Great beverage but a shame to just throw the cup away.  So I watched and waited until my local Starbucks again offered their very affordable ($1.00) reusable cups.  I bought two knowing that I would need one to use and have a spare.

As I was purchasing the reusable cups I went ahead and asked the barista to fill one with my Mocha Latte.  Mmmmm, mocha goodness.

A few minutes down the road it came to me.  Starbucks, offering reusable cups, had engaged me in a great marketing scheme.  First, if I used my cup then they didn't have to use one of their cups.  This might seem like a very small matter but the economy-of-scale rule became apparent.  Their profit margin just increased a fraction because they charged me the same price as a "Venti" beverage and did not incur the cost of the cup.  While my single transaction might be the one half (or even one tenth) of one percent increase in their margin when multiplied by the bajillion cups they sell now we are talking real money, a bunch of money.  Correction: I received a $0.10 discount for bringing my own cup.

I took another sip of my tasty beverage...and the second part of their great marketing scheme became clear.  The reusable cup was modelled after their "Venti" cup.  By asking the barista to fill it with Mocha Latte I was automatically ordering the "Venti" size beverage.  Chaching!  Correction: It appears that this morning I was charged for a "Grande" and not a "Venti".

So I am pleased that I am not throwing cups and lids and cozys away.  Instead I am just giving Starbucks a bunch of some money.

Great marketing guys and I really like your Mocha Lattes.

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