Denny’s Restaurants has been around for…well…for a long time. Long as I can remember, anyway. And they’ve been largely interchangeable, between their competition. I mean, can you really tell me how Denny’s differs from iHOP, Shoneys, or any of the other places that cater to big appetites with small wallets? I can’t. But Denny’s may have found a way to cut through the clutter and make a name for themselves. And it involves, of all things, television. Read the rest of this entry »
Like many brick and mortar businesses, Starbucks seems to be struggling with new media – specifically, how to treat WiFi. Is it a cost center? A profit center? A way to retain customers? A way to fill seats without monetizing them? The results are decidedly mixed. If the WiFi experience for coffee shops was a Magic 8 Ball, it would report “ANSWER HAZY…TRY AGAIN LATER.” But with any endeavor that involves customers, it’s a rule of thumb to keep things consistent. Nothing ticks off customers more than finding a situation where you pay for something at store A, and find it for free at store B – especially when the two stores are selling under the same corporate entity. Which is what makes a generally marketing-savvy company like Starbucks’ latest moves all the more puzzling. Read the rest of this entry »
What is coffee, really? Hot water run through some ground, roasted beans. What’s a soft drink? Carbonated sugar water. Pretty simple stuff, really. Yet, people are willing…nay, eager to pay $4 for a cup ‘o Joe at their local Starbucks, and $2 or $3 in a restaurant for a Coke or Pepsi.
What makes people willing to pay a premium for something with such a small cost of goods, and little inherent value?
I hate to harp on this “perception” thing (again) but people perceive that Starbucks coffee is better than Folgers, and they’ll pay more for it (plus the “experiential” thing that the Starbucks store represents). In a restaurant, when you want a Coke, you pay for it – without stopping to think that you can buy a case of Cokes at Sam’s Club for the same money you spend to buy a 12 oz. Coke while dining out.
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What is coffee, really? Hot water run through some ground, roasted beans. What’s a soft drink? Carbonated sugar water. Pretty simple stuff, really. Yet, people are willing…nay, eager to pay $4 for a cup ‘o Joe at their local Starbucks, and $2 or $3 in a restaurant for a Coke or Pepsi.
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