Comments on: “Isn’t Starbucks always free?” http://www.spanglishgringo.com/weblog/2007/03/08/isnt-starbucks-always-free/ Stories, thoughts & insights on Jesus, college students, and the Bible; Los Angeles, immigration, politics, ethnicity and culture, and also about my daughter Isabel - from a spanglish gringo father living in, learning from, leading & loving life in East L.A. Sat, 19 May 2012 05:17:32 +0000 http://wordpress.org/?v=2.2.1 By: Tom Pratt http://www.spanglishgringo.com/weblog/2007/03/08/isnt-starbucks-always-free/#comment-1016 Tom Pratt Mon, 12 Mar 2007 05:13:04 +0000 http://www.spanglishgringo.com/weblog/2007/03/08/isnt-starbucks-always-free/#comment-1016 Starbucks sells a commodity (normally low profit margins on commodities) but created large profit margins by creating a sense of a funky coffee house catering to people 'who get it.' That's why they can charge the prices they do. Lots of us want a place that doesn't feel like a library or our own home. Starbucks figured that out and has mass produced a middle class man's Parisian cafe. When they started out in Seattle they were actually pretty cutting edge and did offer a real coffee house experience. Those days are long gone. I think they've done a pretty good job of retaining that feel for a long time even while outexpanding Walmart. I mean that as a sincere compliment. I think the only rule governing Starbucks' expansion is that they can't open a new Starbucks franchise inside of another Starbucks. You've gotta have marketing geniuses at work to convice people your stores are cutting edge when you're more common than McDonalds. Starbucks was one of the first businesses to build an empire on purely cultural and emotional 'value added.' Their coffee is nothing special nor is their service. They sell atmosphere. But it's a pretty darn good atmosphere for an assembly line. And I mean that as a sincere compliment too. Starbucks sells a commodity (normally low profit margins on commodities) but created large profit margins by creating a sense of a funky coffee house catering to people ‘who get it.’ That’s why they can charge the prices they do.

Lots of us want a place that doesn’t feel like a library or our own home. Starbucks figured that out and has mass produced a middle class man’s Parisian cafe.

When they started out in Seattle they were actually pretty cutting edge and did offer a real coffee house experience. Those days are long gone.

I think they’ve done a pretty good job of retaining that feel for a long time even while outexpanding Walmart. I mean that as a sincere compliment. I think the only rule governing Starbucks’ expansion is that they can’t open a new Starbucks franchise inside of another Starbucks. You’ve gotta have marketing geniuses at work to convice people your stores are cutting edge when you’re more common than McDonalds.

Starbucks was one of the first businesses to build an empire on purely cultural and emotional ‘value added.’ Their coffee is nothing special nor is their service. They sell atmosphere.

But it’s a pretty darn good atmosphere for an assembly line. And I mean that as a sincere compliment too.

]]> By: Eddy E http://www.spanglishgringo.com/weblog/2007/03/08/isnt-starbucks-always-free/#comment-1010 Eddy E Fri, 09 Mar 2007 14:20:46 +0000 http://www.spanglishgringo.com/weblog/2007/03/08/isnt-starbucks-always-free/#comment-1010 I know we've been around this before, but just want to point out that Starbucks is not a library nor a home. It is a business that aims to make a profit, so it is appropriate to purchase (or to use your terms, obliged to pay). I have no idea why I'm defending Starbucks, but there you have it. I know we’ve been around this before, but just want to point out that Starbucks is not a library nor a home. It is a business that aims to make a profit, so it is appropriate to purchase (or to use your terms, obliged to pay). I have no idea why I’m defending Starbucks, but there you have it.

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