7/19/2019 Brand Focus: Starbucks Premium Pricing Strategy — Goodman Lantern

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Brand Focus: RECENT POSTS

Starbucks Premium STRIPE OR BRAINTREE:

WHAT' S A BETTER PAYMENT
GATEWAY FOR YOUR

Pricing Strategy LOCATION-BASED APP?

(/BLOG/2019/7/12/STRIPE-
OR-BRAINTREE-WHATS-A-

(/Blog/2015/03/18/Brand- BETTER-PAYMENT-
GATEWAY-FOR-YOUR-
LOCATION-BASED-APP)

Focus-Starbucks- Jul 12, 2019

Premium-Pricing- LOCATION-BASED
GROCERY APP
DEVELOPMENT: GIVE

Strategy) CUSTOMERS WHAT THEY

WANT
(/BLOG/2019/7/14/LOCAT
BASED-GROCERY-APP-
March 18, 2015 (/blog/2015/03/18/brand-focus-
https://www.goodmanlantern.com/blog/2015/03/18/brand-focus-starbucks-premium-pricing-strategy
DEVELOPMENT GIVE
1/4
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7/19/2019 Brand Focus: Starbucks Premium Pricing Strategy — Goodman Lantern
starbucks-premium-pricing-strategy) CUSTOMERS-WHAT-THEY-
WANT)
Jul 5, 2019

Premium Pricing involves setting the prices of

products higher than comparable products. It is HOW MUCH DOES IT COST
TO CREATE AN ON-
usually used to boost profits in areas where the DEMAND DELIVERY APP?
customer is happy to pay more. Some brands, such as (/BLOG/2019/6/25/HOW-
MUCH-DOES-IT-COST-TO-
Starbucks can charge a premium price because their CREATE-AN-ON-DEMAND-
DELIVERY-APP)
entire brand image is based around luxury.Starbucks
Jun 27, 2019
sets its prices on a simple idea: high value at
moderate cost. When people feel like they are getting
HOW TO MEASURE AND
a good deal for their money, they are more likely to INCREASE YOUR APP USERS’
pay a higher cost. Starbucks appreciates that the HAPPINESS
(/BLOG/2019/6/20/HOW-
mainstream of their customer base is impervious to TO-MEASURE-AND-
INCREASE-YOUR-APP-
price, and uses small price rises that everyday
USERS-HAPPINESS)
customers may not notice to increase margins. The Jun 24, 2019
goal is to use the price increases to guide the
customer towards your most profitable product. HOW TO MAKE A
Starbucks do not increase the prices of their products SUCCESSFUL NEW APP
WITH A USED IDEA
with the highest margins. Starbucks raised the price (/BLOG/2019/6/18/HOW-
TO-MAKE-A-SUCCESSFUL -
of a tall coffee in order to convince customers to buy
NEW-APP-WITH-A-USED-
a larger coffee size (with slightly higher margins) How APP-IDEA)
Jun 20, 2019
many times have you walked into a coffee shop
and decided on a larger cup because there is only
20/30p difference? How can a company justify these WHY YOUR BUSINESS
NEEDS WHITEPAPERS
price increases? Well, if you’ve ever been into (/BLOG/2019/2/5/GETTING
IT-DOWN-IN-BLACK-AND-
Starbucks you might notice that they spend lot of time
WHITE-WHY-WHITE-PAPERS-
and energy differentiating themselves from their ARE-STILL -NECESSARY-IN-
2019)
competitors. The design of its coffee shops, the music
Jun 17, 2019
played and the types of products it sells. They situate
themselves as selling luxury and sought after
HOW TO BUILD AN
products, as well as being a luxury and sought after ENTERPRISE SAAS MVP
brand. (/BLOG/2019/6/13/HOW-
TO-BUILD-AN-ENTERPRISE-
SAAS-MVP)

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Jun 13, 2019

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(/blog/2015/03/20/when- Profits Online A TIME & PLACE FOR ALL
THINGS - WHY MOBILE
is-it-time-to-hire-an- (/blog/2015/03/16/ekarma-
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Brand Focus: Starbucks Premium Pricing Strategy — Goodman Lantern
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May 29, 2019

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