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Prices

I promise this is a coincidence; I had no intention of writing about coffee for two articles in a row (previously: “Iced Coffee Savings“).

Yesterday, Starbucks started instituting pricing changes on some drinks, lowering the prices of easy-to-make, popular drinks and raising the price on larger, more complicated drinks. There weren’t a lot of specifics, but two different articles mentioned the frappucino as one of the targets for a $0.25 price increase. I’ve worked at two different Starbuckses, and that is not a difficult thing to make, but it does require people to wait a little longer, especially in the summer.

Easy drinks will see a price cut of five or ten cents, nothing to get real excited about. The thing that people usually forget about Starbucks is that – and I’ve heard this from managers of the store – it’s supposed to be a place you go to treat yourself once in a while. If a five cent price decrease at a gourmet coffee shop manages to save you a significant chunk of money over the course of a year, you’re already pretty wealthy, and you don’t need the discount.

Here are some insightful comments from the same story at the Huffington Post:

I’ve always believed that the price should be based on how long it takes to describe what you want.

From a business perspective, I believe this is a good idea. However, haven’t bars been doing this for years?

it would help alot if starbucks would charge $20 for an iced caramel frappuccino. that’s probably the only thing that would keep me from drinking every one I get my hands on.

ok, $50

And just for fun, here are my favorite two drink recipes of all time (I swear I have seen people order these):

  1. Three-quarters decaf quad grandé soy extra-hot no whip mocha valencia
  2. Triple venti upside-down non-fat extra caramel caramel macchiato

In a first, Starbucks lowers price of some drinks, Lisa Baertlein, Reuters, August 20, 2009

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In all likelihood, this will be a yearly reminder. The US Postal Service is no longer required to go through a lengthy approval process to raise postage rates if the increase is below the “inflation rate.” That presents a good chance that each May, we will be required to pay about one cent more for sending a letter.

In May 2008, the rate for mailing a standard letter will increase from $0.41 to $0.42. The “forever stamps” purchased at $0.41 will still be valid, however. So if you’re crazy enough to stock up to “beat the price increase” and use inflation to your advantage, then start hoarding stamps now.

This won’t affect most of the people I know. E-mail has been the main form of communication for me for 18 years or so. USPS hasn’t yet announced the increase for Express Mail and Priority Mail, most likely my only use for the postal service.

Snail mail gets more expensive [CNN Money]

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If you perceived a painful sting each time you opened a wallet in a grocery store or at a gas station last year, it wasn’t just you. The Bureau of Labor Statistics has informed the public that the Consumer Price Index for 2007 is 4.1%, the highest inflation rate since 1990. The increase is due to higher costs of energy (up 17.4%) and food (up 4.9%). Without energy and food, the core inflation rate is 2.4%. [BLS: Consumer Price Index Summary]

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