Thursday, July 3, 2008

Starbucks Coffee and Gasoline

Some cable TV show was running one of those ubiquitous polls (without which the media could ot longer exist, meaningless as they all are) about whether people thought it was better or worse to pay 4 or 5 dollars for a cup of Starbucks coffee or 4 or 5 dollars for a gallon of gasoline.

I leave it as an exercise for the reader to determine how much Starbucks has been charging PER GALLON, and the gross margin (windfall profit?) Starbucks has been making on a cup of coffee.  Just how much does it cost to produce a cup of coffee, as distinguished from a gallon of gasoline?  Which is the more OBVIOUS overpricing?  Price gouging?

It is no surprise that Starbucks is having some problems.  When people realize that they can trade one cup of coffee at Starbucks for a gallon of gasoline (and that does not even count the eXTRAS at Starbucks or the GASOLINE to get there), it is a no brainer.

Evben thouugh I don't know that it is what she intended, I do wish to thank the official blog illustsratior, Kenda, for the inspiration for this entry.  See two previous entries.

No comments: