Tuesday, April 16, 2013

Starbucks is Lowering Prices for Coffee

*Courtesy of The Examiner.

"Coffee enthusiasts will soon be paying less money to enjoy Starbucks coffee.
Michael Musto has reported on April 15, 2013, for the Village Voice, Starbucks Is Dropping Their Prices. Beginning sometime in May, the price of a 12-ounce bag of prepackaged coffee from Starbucks will drop about a buck.
Alexandra Ward has reported on April 15, 2013, for Money News, Starbucks Cutting Prices: Bagged Coffee in Grocery Stores 10% Less.
Starting next month, Starbucks will be cutting the price of its packaged coffee sold in grocery stores by 10%, with an interest in attracting new customers and in order to remain competitive with rival companies like Dunkin' Donuts.
Starbucks spokesman Jim Olson has said that prices will drop from $9.99 to $8.99 for a 12-ounce bag of Starbucks coffee beginning May 10.
Olson has said in a statement, "This will allow us to both enhance the value that we're providing our existing packaged coffee customers, and hopefully increase the frequency which they purchase Starbucks coffee, as well as attract new customers."
However, the list price is simply a suggestion and retailers are free to charge their own prices, and so some customers may not see a change.  But, with Dunkin' Donuts lowering their prices, the pressure has been on Starbucks to compete more effectively by doing the same."

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