Starbucks makes almost $ 5 a profit from each cup of coffee: for which customers are willing to pay more

A product can be both raw materials, products or services. It remains a question how you use your product and how much can be sold.

For example, coffee beans. They are very cheap and available raw materials. By collecting half a kilogram of grain and selling it in the market, you get 50 cents of the cost of one cup of coffee.

If they additionally fried, grind and pack, while the same amount of raw material are available from 2 USD to 20 USD per cup. If this still brew coffee in a small cafe around the corner, one cup of profit equal to 27 USD.

Then how world famous Starbucks coffee can with this amount of profit at 130 USD?

The whole point in the level of value that companies create for their products. Companies that managed to turn the purchase of coffee a special impression will receive two orders of magnitude higher returns compared to the feedstock.


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