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Writer's pictureUmpa Lumpas

🌟 Reflections from a Starbucks Coffee Cup: How High Costs and Experiences Define Our Customers 🌟



Have you ever wondered why paying a bit more for a coffee can be a smart strategy for your business? Howard Schultz, the visionary behind Starbucks, had a keen insight into customer value and experience.

🔍 The Natural Selection of Customers: High Costs 🔍

According to Schultz, high costs are not just a matter of profit margin, but a way to 'filter' customers. This tactic might seem counterintuitive, but it has its logic. By setting higher prices, Starbucks not only ensures sustainable profitability but also attracts a specific segment of customers: those who value quality, are willing to pay for it, and are likely to appreciate the unique experience Starbucks offers.

🌱 But What About Bad Experiences? 🌱

This is where Schultz's vision shines particularly bright. He firmly believed that while high costs might deter certain customers, it's the bad experiences that really drive away the good ones. In the world of Starbucks' high-quality coffee, a bad experience can be more damaging than a high price. A customer willing to pay for quality expects to receive just that, and a negative experience can quickly erode loyalty and trust.

🚀 Lessons for Our Businesses 🚀

This perspective invites us to reflect on how we are managing the cost-experience relationship in our own businesses. Are we investing enough in ensuring positive and memorable experiences for our customers? Do our prices reflect the value we offer?

Remember, price is just a filter, but the experience is the magnet that attracts and retains the best customers.

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