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How Starbucks uses pricing strategy for profit maximization

How Starbucks uses pricing strategy for profit maximization

How Starbucks uses pricing strategy for profit maximization

1. Starbucks raised their beverage prices by an average of 1% across the U.S, a move that represented the company’s first significant price increase in 18 months.

2. Starbucks claims the price increase is due to rising labor and non-coffee commodity costs, but with the significantly lower coffee costs already improving their profit margins, it seems unlikely this justification is the true reason for the hike in prices.

3. It only takes a 1% increase in prices to raise profits by an average of 11%.

overview of Starbucks’ strategy:

To know more about Starbucks Coffee’s strategy, read the full article : https://lnkd.in/gYdNme5

 

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