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Permalink Reply by Jason Dominy on January 25, 2008 at 9:01am

Quite simply, we offer a superior product, and our customers know that. Even in our stores now, we are more expensive than Starbucks on most items because we have to be. They don't have the same costs as we do. We can't afford to lose money on locations as much as they can. So, at first I thought, "Crap." Then, I sat back and thought about it, and they worked the public up to understand that the coffee is worth the price, which we have been able to benefit from. When you go backwards like this, to compete with someone like McDonalds, what do you think the message it sends is?
I know for us, it seems like a really foolish thing. Instead of marketing themselves as merely the superior product, and keeping the prices as they are, they are giving in to McDonalds by joining them in what will become, hear me out, a price war that goes beyond just drip coffee. Then, it really gets ugly. But for now, we must keep doing what we do, which is putting out a far superior product then both Starbucks and McDonalds, and reminding the customer of that value everyday. I am not the first to say there won't be business lost out of convenience to these two, I just think that we know our customers better than they ever will, and they know the value of what we do, and the coffee we put out. I never want to consider myself someone who battles with McDonalds, Starbucks, or even Dunkin Donuts for business. What we do really is completely different and better, and the experience cannot be replicated in a boxed coffee program. Just my opinion, though..... (Maybe I'm optimistic.)

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Permalink Reply by Z Bancroft on January 31, 2008 at 10:20pm

I had that same reaction. There they go again, but yeah, have to agree...I think most customers that come into our locations and have learned the difference (Taste and Quality, Organic, etc.) will stay put. For our location (Camarillo, Ca) it is an upscale community, so People don't pay as much attention to price. For that matter, how many people that come into your shop even think about the $4 they are shelling out for the cup o' love. Quality always pays off, something Starbucks or McDonald's will likely never be able to provide.

Zach

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Permalink Reply by Spencer on February 7, 2008 at 5:18am

Anybody from Seattle who can let us know the effect on business in their stores?

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Permalink Reply by ray peck on July 5, 2008 at 11:07pm

By this time as you know Starbucks dropped their program. However I have offered a "Buck a Cup" for two years and it is successful. This was not about increasing business with a gimmick. It was about providing a real value for those that ONLY have a buck to their name. This brings people in to my store that other wise would not come. I also have people that can pay more too, that love the Buck a Cup. It is perfect for Seniors who want just a cup of coffee. We use this as giving back to the community. Now listen up! It must be paid in exact change or they have to buy 12oz and up. There is No refill discount. The Buck a Cup is always a BUCK, even when a customer wants to top it off! Sometimes it may have penciled out for the customer to have bought our 12oz but so be it. We do have people that come in 2 to 3 times per day for the Buck a Cup that otherwise would only come in once. Yes, they most often purchase another item, so it works. This is our advertising budget AND we do not offer punch cards at all or we would not offer the Buck a Cup.

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