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by chiefofgxbxl 3206 days ago
> What would be really cool is automating crops that still require lots of manual labor. Like vegetables. That's the reason they are still so expensive.

Same deal with coffee beans, which contributes to their higher price. The coffee beans do not ripen at the same time, so they must be hand-picked so the worker can identify which ones are ready. Lots of manual labor.

And with coffee being so widely consumed, savings here would easily be felt by a lot of people, although I doubt Starbucks would like it...

1 comments

Why would starbucks be against lowered supply prices? Either the whole market drops in price and starbucks keeps the same profit margin but lowers actual price, or starbucks just sells the same price but now with higher margins than before
Because Starbucks has found a carefully balanced point between being affordable enough that it has mainstream appeal, and expensive enough that it seems premium.

Any change, absolute or relative, would reduce their margin.

Do you claim that the current price of coffee beans is the price that happens to maximise Starbucks' profits? (This seems implausible to me, unless Starbucks has fairly strong control over the price of coffee beans.)

Or is your claim more narrow than that?

My claim is that the current price of coffee beans happens by coincidence to be close to the optimum for Starbucks’ profits, and any major change would be a disadvantage.