We all love starbucks, no not the coffee, it is the soothing music, the nice sofa and it is a high class lifestyle for us to enjoy. Franky I love their ice blends but it is costly enough so I could only buy one for myself once in 2 months or so or when my mood isn’t that great that day.
When we walk into starbucks, the first thing that shown on our face is that, we don’t really care about the price and I don’t mind being overcharged. Well that is true, how on earth a coffee costs more than 10 bucks when the coffee powder just worth a few pennies. Furthermore you don’t need a great staff to prepare the coffee for you. The thing is, we feel great because we pay more, and ironically, we will feel better if you overcharge me more!
But does Starbucks takes all the profits? According to Tim Harford, author of the undercover economist, most of the time the landlord got most of the pie. It makes sense, considering Starbucks are everywhere and they have the strategic locations all time.
Lesson? well keep enjoying your starbucks. But just remember that we all love premium product. Be frugal sometimes. It feels great to spend on things we like, but hey be moderate!
