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:
- What is price?
- Why is it an important component of the marketing mix?
- What factors might generally influence decisions a business might make about price?
- What is profit?
- What is profit margin?
- Why are margins important in business?
- What are fixed costs?
- According to this story, what are the margins on a latte for a coffee shop before fixed costs?
- Why is that an important concept to understand for any business owner?
- What are some examples of fixed costs that might impact the price of a fancy coffee drink at a coffee shop?
- What is inflation?
- How might inflation impact prices?
- This news story states that almost everything is more expensive now than it was a few years ago. Why might that be?
- What factors influence the price of a “fancy coffee”, based on information from this news story?
- What is a commodity?
- How does that explain why the price of coffee beans fluctuates?
- How might that impact the price of a latte at a coffee shop?
- How does labor influence the price of a latte, according to this news story?
