Bigger Bags Protect Starbucks Stores

Starbucks sells bags of coffee on almost any shelf that could contain the facings. Starbucks stores also sell bags of coffee as it does through Target, Kroger, Meijer, and a raft of retailers. Similar but not identical.

The bags at non-Starbucks stores are 12 ounce bags with a shelf price of around $7.50 unless the bags are on feature. At the Starbucks' store, though, the bags are 16 ounces with a roughly $13 price point. The price points for the bags of coffee at the Starbucks' stores vary depending on roast. The price points at other retailers remains constant regardless of roast.

At price per ounce, the smaller bags appear the better deal. The bigger bags, though, give consumers a reason to add to their ticket as Starbucks' places the bags at consumers' eye level and next to the consumers as they stand in line to buy a cup of coffee. Starbucks sells bags of coffee to impulse buyers instead of retailers who are trying to keep consumers happy.

Given the occasional longer dwell times, a strategically placed large bag of coffee represents the right placement. Perhaps other retailers should consider what items align with the associated price points consumers stare at while waiting to check out.

Two cups of coffee were drunk in the making of this blog post.