$1 Coffee At Starbucks

If you live in Seattle, you now have access to one dollar coffee at your local Starbucks.  According to this story by Reuters, The coffee giant not only is offering a shorter $1 cup of Joe in the Seattle area but also allowing free refills in those same outlets.  It makes sense.  Too many new coffee houses are cropping up and offering alternatives which is causing Starbucks to rethink certain business practices.  Of course, the official word from the company is: “This test is not indicative of any new business strategy.”  Oh really?  Then why do it?  Starbucks has seen their sales sag of late.  Competition, over saturation of shops, and an economy where folks are pinching pennies (not to mention the cost of dairy products has went up) has caused the company to rethink some things.  Though Starbucks isn’t my top choice for coffee, I still visit their shops frequently when driving about (Sometimes, that’s all you find).  I would probably increase my visits there knowing I could get a cheaper cup of coffee and sit to catch my breath for a spell in between things.  Paying nearly $2 for a cup of brewed coffee is too much in my opinion.  I don’t mind paying a premium for a good, stout Arabica blend, but brewed coffee could be cheaper.  At my local Seattle’s Best (Owned by Starbucks), I pay $2.01 for a medium cup (tax included) with no refills.  Peets coffee (one of my favorites), is about $1.70 with no refills.  The new guy on the block in our town, Forza Coffee out of Washington State, is offering a brewed cup for $1.40 WITH free refills.  On top of that, they are the only one of the three with free wi-fi so guess where I spend the most of my coffee drinking time now?  You got it.  I’ve met many folks who’ve asked about my church while I was studying and I get a great cup of coffee to boot.  You can’t beat it!

If I were Starbucks, instead of taking the route they’ve taken so far (”This is not indicative…”), I would employ an aggressive strategy to reach new customers.  State up front that you’re selling a premium product at quick shop prices, plug the unique music available, great atmosphere, etc… and say it’s just another way to improve upon the best…(That would be my marketing side coming out…They do have more locations than anyone else so why not say that and capitalize?  Even though I would disagree with the statement ‘we are the best’, you do what you can in marketing.)

When we change ministry practices in the church, we’re up front that we are trying new things to reach more people.  Starbucks should just say the same and move forward.  Now if they really want to increase sales, free wi-fi would be the next step.