You’ve all heard it before …. probably several times.
But its still worthy of revisiting.
11 years ago, in 1999, the average price for a cup of coffee was $0.50 – $0.75. These aren’t hard and fast numbers – they are based on a basic google search coupled by asking some of my favorite coffee-aholics. A specific number isn’t the point of this post, so bear with me here. But, 10+ years ago, if you were to step into a 7-11, thats about what you’d pay for a cup of coffee.
Nowadays, the average price of a cup of coffee hovers around $1.50. You can’t blame that on inflation, or rising coffee prices. Even though those are both factors, they do not account for the exponential price increase of a cup of drip coffee. Have you thought about what does?
Starbucks came along. They came along, and they came hard. I won’t go into their marketing, or their business plan. What I do want to talk about is how they were able to convince the public that a cup of coffee was worth $1.50. Even better, how they invented a line of drinks that they could charge $4 for.
And its all found in the experience they created. Basically, that is what you’re paying for when you buy a cup of coffee from Starbucks. You could brew it at home practically for free: $15 for a coffee maker and $0.15 per cup. And don’t tell me that you like the Starbucks brand of coffee, and thats why you go …. because you can buy their brand of coffee, pre-ground, in the store for $6-10. No, its the experience, like it or not.
Starbucks, leaning on the experience of coffee in European countries like Italy, adopted a mentality that coffee was about so much more than just coffee. Coffee was about connection, about friends and family, about ritual and habit and tradition. It was about conversations and memories, about “jump starts” and “pick-me-ups”. It was about reconnecting with an old friend or some alone time with a good book. It was a stop-off before church, or a follow-up after dinner. But, whatever it was to each individual, it was about so much more than coffee. The coffee was merely the vehicle to deliver the “so much more”. Coffee was merely the vehicle to deliver the experience.
Picture yourself walking into a Starbucks. It almost seems commonplace now, but try to remove yourself from what you typically don’t even notice. The environment is clean, fresh, and controlled. Nothing too bright, nothing too dark. Its always fairly easy to find the line and slip into it. The menu is large enough to read, and clear enough to figure out what you want. There are the classic options, and the new ones, but its laid out in a clean and organized fashion. Typically, the barista greets you with a smile and takes your drink order quickly. You can have it however you want it, and you’re actually encouraged to customize your order here. Credit card, cash, or gift card – the purchase is always quick and consistent. You turn to walk away, and depending on the layout of the store, there are a variety of options for sitting. For the most part, though, there is also consistency here. Some large, overstuffed chairs, usually leather and soft and comfortable. Some chairs and tables in case you have some work to do. Music in the background, never too loud. Almost always there is some outdoor seating available.
Compare that to walking into a 7-11 for coffee. You walk back to the serve-yourself environment, where there is a stainless steel coffee station surrounded by the donuts, bagels, and hot dogs. Usually there are 4-8 different types of coffee sitting in warmers. You pick your size and the type of coffee you want. You can add cream, creamer, sugar, or a variety of creamer flavors. You walk back up to the front and pay for your order.
From a product standpoint, you could actually make the case that 7-11 has better options. While Starbucks will customize your $4 drink, they are very limited in customization of their $1.50 cup of coffee. 7-11 gives you options, and a lot of them. They provide a quick, speedy cup of coffee that is consistent. And, thats exactly what Starbucks does as well. But, they also provide an “experience”. And they can charge a premium for it. You never hear people say “Lets grab a 7-11 on our way to the theater”.
Let me be clear – I’m not knocking 7-11 at all. NOR am I making any sort of case for Starbucks’ coffee. Rather, I want to use the last 10 years in the coffee industry to discuss your business. I don’t care if YOU don’t like Starbucks “burnt” style of coffee – plenty of people seem to. And, on the flip side, I don’t care if YOU never notice the ambiance, and swear that you just go there because you like the coffee. This isn’t about coffee ….
Its about experience, and its about an industry that saw a 150% increase in their price point in the last decade. Sound familiar? To me, that sounds a lot like the wedding industry in so many ways. If “experience” isn’t a part of your business, it needs to be. And it needs to be soon! Here are some questions for you:
1. What are your clients getting from you that goes beyond “great images”? We’ve seen that, to charge $1.50 for a cup of coffee, Starbucks had to provide more than just a good cup of coffee ….
2. Do you have an “experience” that goes beyond just the images? Or is the client’s experience with your company based solely on what they think of their images?
3. What can you do to build an “experience” inside of your brand? An experience that goes beyond any image you take. An experience that supercedes anything they could ever expect. An experience that justifies the price you want to charge.
Believe it or not, being a photographer isn’t all that much about photography …. think about your EXPERIENCE!

by jared
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