Also from Ken Lonyai...
December 7, 2012
Just last week we discussed Starbucks' use of scarcity to build the perceived value of select estate coffees. Now the chain is offering a limited edition gift card that is sold only through the Gilt luxury products website and costs $450. Do you think the Starbucks Metal Card aligns with the company's brand? [more...]
Robbie Blinkoff summed it up nicely. This initiative will not make any direct mark on the company's balance sheet, but it will add to the cachet and perception that they sell something beyond diner or Dunkin' Donuts coffee. For the "99%" remaining customers, many will feel good and justified paying more to be part of the brand, even if they're only spending $4.50 (1% of the price of the card) at a time. That's where the card will have the most positive impact on Starbucks.