

Is Starbucks a Cannibal? - Specstacular
http://internationalbs.wordpress.com/2009/09/30/is-starbucks-a-cannibal/

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shrikant
_Surely, if customers cannot readily taste any difference between the instant
coffee and the considerably more expensive version brewed in-store, then
Starbucks has broken their own business model._

That is ridiculous. Two immediate reasons:

1\. If brewed costs B and Via costs V, but they price the latter at slightly
more than the cost savings (B - V), their profit margin per unit sale has
still increased.

2\. Even after their double blind super funky scientific rigorous tests end up
showing most people cant distinguish between the tastes of the two variants,
there will always exist people who are quite willing to pay more for 'premium'
versions. Despite these being only same old stuff re-badged.

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joezydeco
What's not mentioned is that Via has larger upfront cost. $3 for 3 Via packets
or $20 for 24 packets.

I've tried Via, and it needs to either be WAY cheaper or lightyears better
than the in-store brewed coffee to make the purchase worthwhile for me.

I'm not saying that's a hard task on either count. Starbucks brew is way way
too strong and burnt for my tastes.

