Why is Starbucks so expensive?

Answer 1

My view:

I figured I would give a better answer and not a typical, lame, kids answer of "because it's awesome!", or something equally stupid, because that is not an answer.

Anything out there that is expensive, it doesn't matter what it is, gourmet food, coffee, designer clothes, sports cars, there are a few reasons why it can be expensive.

You are paying for a name. You might be paying for better quality. You could be paying for the time involved to make it if entirely handmade.

Personally, I find Starbucks to be MASSIVELY overpriced. I would never, in 10,000 years pay $5 for a cup of coffee. But there are millions of people who pay it every day and say "oh it is so worth it!!", ok fine, it's your money, hell, spend $20 on that coffee if you want.

Why are Nike shoes $75 and up? Are they worth it? Not to me. But to someone with the money, they probably are.

Anything is worth what someone is willing to pay for it. I refuse to buy anything at Nordstrom's. There is absolutely nothing in that store I think is worth the money. But thousands of people pay it every day.

So why is anything in life so expensive? Sometimes you get a higher quality product, and the materials, labor, and workmanship cost more. You are paying for their time. In other cases, like with Nike shoes, you are not paying for quality, you are paying for an athlete getting $150 million dollar contract. Those shoes cost about $2 to make.

In the past I used to get upset when a business like Starbucks was charging $5 for a cup of coffee that cost 15 cents to make. I don't anymore. Why not? Because I refuse to pay it. I don't pay it. I don't go there. I don't preach to others that they are getting ripped off. Most don't care, they will happily shell out $5 or $7 on that coffee. Fine, it's their money.

Anything that is overpriced is that way because someone is willing to pay it, and the part I find funny, is almost all of them can justify spending that much. Alright, fine, spend your money however you want.

If you opened a little coffee stand and charged $6 a coffee, and people were willing to pay it, even though each drink only cost 25 cents to make, wouldn't you be happy? Sure some people will tell you it's not worth that, and they are right, to THEM it isn't, but to those paying $6, it is.

As a final example, I buy Tommy Bahama shirts, which are VERY expensive. Retail is $110 to $175. But I don't buy them new. I buy mine used off ebay between $20 and $45. That's still expensive, but better than $110. To me, they are not worth full retail price, but to some people they are.

When people are willing to pay over inflated prices on anything, the prices will remain high. And when the item stops selling, the price goes down.

In short, if anything is too expensive for you, don't pay it. I won't. Those who do, that's fine, it is obviously worth it to them, so let them pay it.