Pricing of coffee!☕

Same coffee - different price. A pricing lesson hiding in plain sight!💡

Should you differentiate prices across countries, segments, or channels?

Some say NO:

➡️ Costs are the same, so prices should be too

➡️ Customers might notice and push back

Others say YES:

➡️ Cost-plus pricing is outdated

➡️ Price variation is already everywhere in B2B and B2C

➡️ Value perception and price sensitivity vary widely

📍Real example in Athens that proves the point:

I buy a latte from a well-known coffee chain.

Price: €3.00 including water, so effectively €2.50.

Walk just 10 minutes to another shop from the same chain... Same coffee, same branding, similar neighborhood. Price? €3.20 - a 28% increase!🙄

💡The only difference? The pricier location is near two major hospitals.🤔

📱Even more interesting: Order online - same product, same chain - and you’ll pay €3.30, regardless of store.

👉 If they can differentiate pricing for coffee within a few blocks, imagine what you can do with your SaaS, enterprise offering, or a global product.

Price differentiation isn’t optional - it’s a must for growth and profitability!🚀

Interested in learning more about AI-Powered Price Optimization and Strategic Forecasting?

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