[davnicwil]

> ..$5 for a cup of coffee in a coffee shop. They are buying the experience more than the coffee.

Slightly OT but for me it's the reverse. If I go to a really good gourmet café then yes it may be expensive and yes, a component of the price is the experience (usually these cafés are nice places to hang out in) but most of it is the coffee itself. I cannot buy a coffee that good for less money in another place, hence I am willing to pay the price they are charging.

[bschwindHN]

Agreed. Where I work, I can get a cup of iced coffee at 7-11 for $1, or I can go to a coffee stand and get significantly tastier iced coffee for $4.75. They have roughly the same experience in this case because the coffee stand doesn't have a place to sit.