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Kevin H's avatar

What this article forgets to mention is I normally get Starbucks Gift Cards at a 15-20% discount. It is money I would have spent normally at the Starbucks store except at a discount with GCs. It is a direct cannibalization and opportunity cost to Starbucks.

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Connor Tabarrok's avatar

Interesting! I read this as Starbucks demonstrating a willingness to pay somewhere between 15-20% in order to be the custodian of your dollars for some time, likely with the expectation that many customers will not drain a gift card to 0, and that some gift cards will be forgotten or never used.

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Kevin H's avatar

Hello

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Mr. M's avatar

Each cappuccino we make costs about 45 cents. HOW: 1) we do the math, 2)we buy inexpensive - but very good - espresso grind coffee (La Llave, Lavazza), 3) when there is an especially good deal we buy more, 4) we sometimes grind our own espresso - no you do NOT need a burr grinder, 5) we do not go out to Starbucks, Victoria Pastry or Emporio Rulli for cappuccini but we have been told that ours are as good/often better, 6) it would cost over $5,500.00 more each year to 'go out' and have the 4 cappuccini we have every morning, 7) yes I factored in milk and sugar

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