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Starbucks, monetary superpower

jpkoning.blogspot.com

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Re: Starbucks, monetary superpower

#3

Post by gamescodedogs »

jahbrewski wrote: post #2

Not so sure it's due to "coffee addicts" so much as the fact that Starbucks gift cards became the perfect, generic, gift. How many times have you been on your way to X, needed to bring a gift, and just run into Walgreens?

Definitely. A mission saver for time immediate events, when you need a gift. Use it a couple of times.

Re: Starbucks, monetary superpower

#4

Post by notatoad »

jahbrewski wrote: post #2

Not so sure it's due to "coffee addicts" so much as the fact that Starbucks gift cards became the perfect, generic, gift. How many times have you been on your way to X, needed to bring a gift, and just run into Walgreens?

the default setting on the starbucks app on my phone is to automatically top up every time the balance drops below $10. So starbucks basically has a permanent $10 loan from me. I'm sure i'm not the only one.

actual gift cards given as gifts though are probably more likely to be used up and discarded, instead of being set to auto-reload and carry a balance.

Re: Starbucks, monetary superpower

#5

Post by jakewalker »

jahbrewski wrote: post #2

Not so sure it's due to "coffee addicts" so much as the fact that Starbucks gift cards became the perfect, generic, gift. How many times have you been on your way to X, needed to bring a gift, and just run into Walgreens?

That may be part of it, but Starbucks has done a very good job of getting their regular customers to sign up for their loyalty program and online/app ordering, and to have them sign up for automatically replenishing (every time my balance goes below $10, load another $25) gift card accounts to use both features.

Re: Starbucks, monetary superpower

#7

Post by cryptoz »

jahbrewski wrote: post #2

Not so sure it's due to "coffee addicts" so much as the fact that Starbucks gift cards became the perfect, generic, gift. How many times have you been on your way to X, needed to bring a gift, and just run into Walgreens?

Anecdotally, I've spent maybe ~$5,000 at starbucks in my life. I used a gift card for ~$25 of that and I have never given one as a gift.

For me, it is the predictable atmosphere, the AC, the WiFi, the coffee itself, the hours of operation, and the location convenience that draws my money, not the gift cards. I would be surprised to learn I'm in the minority there, as I figured I was a common starbucks demographic / customer target.

Re: Starbucks, monetary superpower

#9

Post by 8bitben »

As for Wayne, while he may earn an implicit interest return in the form of Starbucks points, by forgoing a card payment he's giving up on the associated cash-back or airline points.

I don't agree with this. While merchants pay interchange fees based on the value of card transactions (plus a flat rate per transaction IIRC), as a cardholder rewards are earned only as a percentage of the total purchase, and are not influenced by the number of transactions.

So I earn 4% back on the value of all my Starbucks transactions, regardless of whether the purchase is made via the app or my card. I am willing to forgo a couple pennies in interest on my rolling $15-20 balance to have the convenience of mobile ordering.

If you use the system efficiently, I see it as a net value add as a customer.

Re: Starbucks, monetary superpower

#10

Post by kube-system »

jahbrewski wrote: post #2

Not so sure it's due to "coffee addicts" so much as the fact that Starbucks gift cards became the perfect, generic, gift. How many times have you been on your way to X, needed to bring a gift, and just run into Walgreens?

Have you used their rewards program? You'll usually carry some sort of a balance to do so, and many people use the program.
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