Starbucks - ripoff

Possedion

Recently I was out in Munich, and was comparing pricing between Rip of Ireland Starbucks and Germany. some examples
Germany VS Here
Muffin 2,15 VS 2,60
Grande Latte 3,40 VS 3,90
...
Why are they ripping Irish consumer off so much?
They are loosing my custom.

naoise80

They're only ripping off people who buy from them. And if you willingly pay for something, how can you be ripped off.

It's not as if they have a monopoly on selling coffee and muffins.

Scoffeymonster

I would presume that the cost of raw materials in ireland would be higher than Germany, and so this would be passed onto the customer.

Germany is a much bigger country, 80 million people compared to Irelands 4.5 million, so as the law of economics would state the more you make of something the cheaper it becomes to make. Even buying raw materials would be cheaper as they would be purchasing more.

An exagerated example would be that starbucks could purchase 80 million litres of milk at a cheaper rate per litre than they would if they purchased 4.5 million litres of milk. Plus as Germany is on the continent, they could purchase milk etc. from a nearby country if it was cheaper without having to incur the cost of shipping, that would be incurred in Ireland.

A french guy once told me that there was huge trouble in France in the dairy industry as all the milk was being imported from Poland for cheaper than the French farmers could produce their milk. Ireland doesn't have that option, because we're surrounded by water and so would incur more cost to do it.

The question I'd like to know taking all this into account, is why there is only roughly a 50 cent difference in the price considering Starbucks overheads would be a lot less in Germany!

Tordelback

What are commercial rents like in Munich? VAT? Wages? Customer numbers at peak hours versus off hours? Could be a dozen reasons.

Given the number of branches that have closed down in the last 18 months I'd say Starbucks has now got a very good idea of what they need to charge to stay afloat, and what the Irish customer is prepared to pay. Getting your coffee in Starbucks is aspirational living at its most basic - you can often get the same product for half the price just a few doors down. You're paying more just to have them here so that you can go there. Don't see the problem.

eightyfish

Possedion wrote: »

Germany VS Here
Muffin 2,15 VS 2,60
Grande Latte 3,40 VS 3,90

We have the second-highest minimum wage in Europe. Germany don't have a minimum wage.

Possedion wrote: »

They are loosing my custom.

Well go to a normal café then.

Slasher

Scoffeymonster wrote: »

I would presume that the cost of raw materials in ireland would be higher than Germany, and so this would be passed onto the customer.

Germany is a much bigger country, 80 million people compared to Irelands 4.5 million, so as the law of economics would state the more you make of something the cheaper it becomes to make. Even buying raw materials would be cheaper as they would be purchasing more.

An exagerated example would be that starbucks could purchase 80 million litres of milk at a cheaper rate per litre than they would if they purchased 4.5 million litres of milk. Plus as Germany is on the continent, they could purchase milk etc. from a nearby country if it was cheaper without having to incur the cost of shipping, that would be incurred in Ireland.

A french guy once told me that there was huge trouble in France in the dairy industry as all the milk was being imported from Poland for cheaper than the French farmers could produce their milk. Ireland doesn't have that option, because we're surrounded by water and so would incur more cost to do it.

Very well put. A small country with a small tax base will always have a higher cost of living than a larger country. I have a friend who lives on a small island in the Carribean and you wouldn't believe what they have to pay for things over there. Everything is imported, even most food. He usually gets people to buy things like razor blades in Ireland and post them to him.

mickoneill30

Scoffeymonster wrote: »

The question I'd like to know taking all this into account, is why there is only roughly a 50 cent difference in the price considering Starbucks overheads would be a lot less in Germany!

I was thinking that too. A 50c difference seemed good. I think Starbucks are ripping off their German customers.

Ghandee

naoise80 wrote: »

They're only ripping off people who buy from them. And if you willingly pay for something, how can you be ripped off.

It's not as if they have a monopoly on selling coffee and muffins.

Jaysus.......

I've heard that before somewhere!

91011

The problem with any labour intensive & fixed cost intensive product / service is that they will reflect the local area's costs.

The raw material cost of a cup of coffee is about 15c - 30c in nearly every market. Every other cost reflects local costs.

Hence the Big Mac index which was originally seen as a bit of fun, is now regarded as a fair reflection of costs v earnings for products by stating how long a person on average wage has to work to earn the amount for a Big Mac.

In the Big Mac index, Ireland comes about 9th cheapest in the world at 15 minutes whereas in Budapest you need to work for an hour before you've earned enough to buy a big mac.

eightyfish

91011 wrote: »

In the Big Mac index, Ireland comes about 9th cheapest in the world at 15 minutes whereas in Budapest you need to work for an hour before you've earned enough to buy a big mac.

Or 2hrs 38mins in Nairobi.

naoise80

Gucky wrote: »

Jaysus.......

I've heard that before somewhere!

Your point being?

keithclancy

Possedion wrote: »

Recently I was out in Munich, and was comparing pricing between Rip of Ireland Starbucks and Germany. some examples
Germany VS Here
Muffin 2,15 VS 2,60
Grande Latte 3,40 VS 3,90
...
Why are they ripping Irish consumer off so much?
They are loosing my custom.

Prices are different in all the Starbucks, its a Franchise.

I always knew Starbucks was a ripoff, but never went comparing the prices between each location.

Run_to_da_hills

I havent been to an Irish branch of Starbrucks in years, ever since Insomnia started doing specials, ie 3.50 muffin / bun = Coffee (Any type) any sambo for e5.00 They have also taken my Custom from O'Briens.

nitromaster

mickoneill30 wrote: »

I was thinking that too. A 50c difference seemed good. I think Starbucks are ripping off their German customers.

My thoughts exactly.

Irish prices aren't much higher then the german ones, the germans must be getting ripped off!


Case: Lidl in the middle of paris city: 2 Litre bottle of water = 19c.

Starbucks here isn't much of an increase compared to Germany considering all the extra costs.

naoise80

naoise80 wrote: »

They're only ripping off people who buy from them. And if you willingly pay for something, how can you be ripped off.

It's not as if they have a monopoly on selling coffee and muffins.

Why does this forum even exist if this is the reply every time?

borderlinemeath

bluewolf wrote: »

Why does this forum even exist if this is the reply every time?

Example
Argos - Philips gloss metal kettle - €39.82
Exact same kettle in Power City is a tenner cheaper.

I find Argos in general to be a rip off - they tend to mark down items to make them more appealing. I don't care whether something is on "Sale" or not - but a lot of gullible consumers fall for that type of blatant marketing.

This is the type of stuff I would expect to be posted rather than obvious non like for like comparisons such as the bottled water in airport V Lidl post.

borderlinemeath

borderlinemeath wrote: »

Example
Argos - Philips gloss metal kettle - €39.82
Exact same kettle in Power City is a tenner cheaper.

I find Argos in general to be a rip off - they tend to mark down items to make them more appealing. I don't care whether something is on "Sale" or not - but a lot of gullible consumers fall for that type of blatant marketing.

This is the type of stuff I would expect to be posted rather than obvious non like for like comparisons such as the bottled water in airport V Lidl post.

And if someone replies "don't buy it in argos then nobody is forcing you"?

pleasant Co.

Starbucks, a rip off....YES

A rip off compared to German starbucks...NO.

Plenty of cafes that provide both woeful and good coffee around every part of ireland, so just switch to the competition, problem solved.

borderlinemeath

bluewolf wrote: »

And if someone replies "don't buy it in argos then nobody is forcing you"?

I didn't buy it in Argos - I was highlighting a genuine rip off:)
Same product - both large suppliers of electrical goods and have bulk buying power behind them - yet one is selling at 25% cheaper than the other.

Whereas a bottle of water in an airport outlet V a bottle of water in one of Europes largest discount retailers is not a rip off. Thats market conditions associated with airport trading V bulk purchasing.

Or the cup of coffee in two different countries - different business conditions attached to both so there will obviously be different prices.

It's the silly posts that attract the retorts from posters.

Ghandee

naoise80 wrote: »

Your point being?

My point being that your response was predictable and not very original.

Take a quick trawl through these threads, and count how many times that EXACT same thing has been said before.

Or did you actually think of it all by yourself?

Awesome-O

I love starbucks, I would go there more as a treat, in comparison with other coffee shops it can be more expensive and that is why generally I would go somewhere else, I love that most other places now do loyalty cards ie: every 5th or 10th coffee free, also in Butlers you get a free chocolate too yummy!
I know starbucks is dearer, but I like it and I like the cosy couches therefore, when I feel like a treat I go there and am happy to pay the little extra for it.
I do agree however that it is annoying to see the difference in price between the different countries but then again this does happen in pretty much every shop.

Bowel Cancer

naoise80 wrote: »

They're only ripping off people who buy from them. And if you willingly pay for something, how can you be ripped off.

It's not as if they have a monopoly on selling coffee and muffins.

JESUS WEPT. The same **** every time in this thread.

It is a ripoff regardless if you buy it.

Tordelback

Bowel Cancer wrote: »

JESUS WEPT. The same **** every time in this thread.

It is a ripoff regardless if you buy it.

Sorry, don't agree. Aside from the fact that others explained that the business costs are higher in Ireland than elsewhere, you are also paying to buy it in Starbucks - the Starbucks brand itself adds value to the product for some people (not me, I hasten to add).

Looking at three neighbouring coffee shops on Dublin's Dawson Street, the much cheaper deals offered by Cafe Sol and Insomnia are better value for the physical product itself, but if I were to go for a sitdown and a chat I might be persuaded to pay more for the more comfortable surroundings of Starbucks, and that's without the possible added satisfaction attaching to drinking in the Friends-alike American franchise (as it happens I get by with a flask of instant these days, and am happy for it).

In short: it's not a ripoff if you're getting something different for your money. My old economics teacher would say: divide the utility by the cost to get the value. Utility isn't just about physical product.

The excellent example of a ripoff cited above (Argos vs Power City) is unlikely to be fixed by the same factors - nobody goes to either shop expecting anything but suffering.

Basq

I got a Venti (Large) Americano in Dublin Airport this morning for €3.10.. that's 591ml of coffee.

A large coffee most places would set you back anywhere between €1.80 - €2.60 (the latter being Topaz) and it wouldn't be close to 591ml. It'd be 300ml - 350ml tops!

Maybe people consider the Tall (Small) or Grande (Medium) a bit pricey.. but ml for ml, the Venti is well worth getting.

Tordelback

basquille wrote: »

.that's 591ml of coffee.

Not really - its three shots of espresso (90ml) and about a pint of hot water. However, a euro per espresso shot isn't a bad deal either.

naoise80

Gucky wrote: »

My point being that your response was predictable and not very original.

Take a quick trawl through these threads, and count how many times that EXACT same thing has been said before.

Or did you actually think of it all by yourself?

It's my opinion.

I could mix up the words a bit if it would make you happier.

Ghandee

naoise80 wrote: »

It's my opinion.

I could mix up the words a bit if it would make you happier.

No, Mixing the words up a bit wouldn't make me happier.
What would make me happier is, if you actually bothered to get your brain into gear and think of something original, and not repeat what hundreds (possibly thousands) have said before you!

The same old feckin reply everytime!

Use your brain, contribute something original instead of trying to look clever by repeating what has been said a million times before FFS!

Rant over!

rubadub

eightyfish wrote: »

Well go to a normal café then.

Go to a BETTER cafe, and far cheaper. 3FE in town is run by a world class barista, serving up far better coffee than starbucks muck and at a cheaper price. I was in China and a starbucks coffee was €3.50, for the same price we got a slap up meal in a fancy restaurant, I was told that going to starbucks was seen as a status symbol, I reckon the same applies here, like people paying well over the odds for so called "premium" beers like budweiser or heineken -inferior product marketed to the naive and gullible as top quality. Maybe the Germans are not suck suckers for apparent "status" and are not willing to pay so much for it.

bluewolf wrote: »

Why does this forum even exist if this is the reply every time?

because its the same old crap day in day out, people who rarely do post legitimate ripoffs might not get many views or advice on their posts are they are lost amongst the endless posts like these. I feel sorry for people posting proper ripoff stories.

Gucky wrote: »

My point being that your response was predictable and not very original.

Same as this thread

Gucky wrote: »

Take a quick trawl through these threads, and count how many times that EXACT same thing has been said before.

Yes, and it seems people still do not get the message and continue to pay over the odds, then cry ripoff when they consensually paid, yet they make out like they were raped. So I would expect the same advice to be repeated over and over.

The poster would have found it FAR more productive to post in the bargain requests forum or the coffee forum and ask where to get cheaper & better coffee -like I suggested 3FE

Din Taylor

rubadub wrote: »

I reckon the same applies here, like people paying well over the odds for so called "premium" beers like budweiser or heineken -inferior product marketed to the naive and gullible as top quality.

Drink Budweiser because of its ubiquity in Irish pubs. Don't think Guinness travels well outside Dublin, don't like the taste of cider and shorts just make me obnoxiously p1ssed. Don't like changing lagers in the night either as it can make me sick. Nothing to do with it being marketed as top quality. I know it is sh1t. From what I know a lot of people are the same.

Btw if I'm staying in for the night it'll always be Tyskie.

orf

It's not a franchise

run_Forrest_run

Tordelback wrote: »

Not really - its three shots of espresso (90ml) and about a pint of hot water. However, a euro per espresso shot isn't a bad deal either.

not even a euro per shot when you break down other costs that the customer often doesn't realise, labour, rent, equipment, utilities etc..