After watching the video from the Technology, Entertainment, Design
conference, the statement that stuck with me was that a cup of coffee costs
only two to three cents as a commodity, but is inflated to a few dollars or
more as a good. What I remember from my college barista days is that the
espresso machines used to make lattes and cappuccinos – and the blenders used
to make smoothies and frappuccinos – were much more costly to purchase, repair
and clean than the coffee makers. It was much quicker for me to pour a cup of
the house blend than brew a double espresso to be added to steamed or frothed
milk. I knew that a tall, regular coffee costs much less than its disposable,
logo cup.
Joe Pine speaks about authenticity and experience. It is undeniable
that the relaxed ambiance of a dimly-lit coffee shop with comfortable seating and
modern packaging increases the price of what is essentially the same product
sold at twenty-four hour convenience store. I liked the point he makes that an experience
cannot be inauthentic. Even if consumers visit a chain restaurant in a shopping
mall pretending to be an authentic Mexican taqueria, their experience is still
real. And it is this experience of going to the colorful venue, being greeted
by friendly servers and receiving bottomless nachos and salsa that turns
inexpensive – albeit time-tested and crowd-pleasing – goods into profitable
commodities.
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