Marketing Currents - Business and Marketing Current Events

Why your $7 latte is $7

[displaycategories]

If you are a connoisseur of fancy coffee and fancy coffee shops (or even just fancy-ish), you’ve probably noticed that the price of your favorite drink is higher than it used to be.

Click here to read the story at vox.com.

Discussion Questions:

  1. What is price?
  2. Why is it an important component of the marketing mix?
  3. What factors might generally influence decisions a business might make about price?
  4. What is profit?
  5. What is profit margin?
  6. Why are margins important in business?
  7. What are fixed costs?
  8. According to this story, what are the margins on a latte for a coffee shop before fixed costs?
  9. Why is that an important concept to understand for any business owner?
  10. What are some examples of fixed costs that might impact the price of a fancy coffee drink at a coffee shop?
  11. What is inflation?
  12. How might inflation impact prices?
  13. This news story states that almost everything is more expensive now than it was a few years ago. Why might that be?
  14. What factors influence the price of a “fancy coffee”, based on information from this news story?
  15. What is a commodity?
  16. How does that explain why the price of coffee beans fluctuates?
  17. How might that impact the price of a latte at a coffee shop?
  18. How does labor influence the price of a latte, according to this news story?
Chris Lindauer
After working for nearly a decade in professional sports, Chris Lindauer, formed Sports Career Consulting to provide unique sports business education opportunities in and out of the classroom. In the eighteen years (and counting) that followed, Chris has inspired thousands of students to pursue their passions and explore the career of their dreams. He currently lives in Portland, Oregon with his wife, two teenage daughters and their dog.

SEARCH MARKETING CURRENTS:

RECENT POSTS

POST CATEGORIES

MARKETING CURRENTS ARCHIVE

FOLLOW SCC