Why are Starbucks mugs so expensive? In this post, we’ll explain why Starbucks mugs are so expensive by discussing the top 10 reasons why they cost so much. The price of a mug ranges from $1.25 to-1.75 depending on its size and design, but still has a reasonable profit margin for the company, since they sell over 125 billion cups of coffee each year.
You may be asking yourself, how can Starbucks afford to sell a mug for over $1? well if you add up all the ingredients that go into making a cup of coffee, you would find out that it’s not worth even a dollar. However, because Starbucks has built up an enormous brand name, people will buy it regardless of what they pay.
So, why are Starbucks mugs so expensive? below are the top 10 reasons.
10. Starbucks has a high overhead
As a large-scale company that relies heavily on technology and highly skilled labor, a lot of money goes into Starbucks’ infrastructure and maintenance. The company has over 15,000 locations throughout the world and more than 200,000 employees; this requires billions of dollars worth of funding for their in-house research and development as well as employee salaries.
9. There are no Starbucks mugs around the world
As a result of the fact that each cup is carefully handcrafted and unique, there isn’t even a single Starbucks mug anywhere in the world as a result. The only way you can get one is to purchase it from Starbucks’ online store or go to their physical locations and buy them directly since they don’t sell their mugs to any third parties.
8. They’re made of ceramic
Cups made of ceramic are not biodegradable, which means they’ll last millions of years and are thus very valuable. At $1.75 each cup, Starbucks will be making huge amounts of profit in the future if they keep doing this.
7. It’s patented
Starbucks may not have made a lot of money off their mugs, but they still hold multiple patents on them, so they make sure that no one else can even try to sell cups like this. This is key to their business model since they want exclusivity and they achieve that through these patents.
6. They make it look classy
Starbucks mugs are designed in such a way that no matter what you put inside of them, you’ll feel like you’re drinking from royalty. The cups are all very well designed, with their famous Starbucks logo on the front and elegant patterns (sometimes even flowers) on the back. These cups will impress guests, but they come at a price.
5. The price is still reasonable
Starbucks’ prices are surprisingly low for the amount of work that goes into making each cup. For $1.75 each, you would think that this price is high, but it’s a fairly decent deal since they’ve invested millions of dollars in their infrastructure, technology, and clever marketing strategies.
4. They look elegant and expensive
Starbucks’ “Iced Vanilla Bean” is the most expensive cup in the world at $4.65. Even though they’re selling these items at extremely high prices, many customers continue to buy them because they’re so appealing and look classy. Because of this, even though these cups are only $1.75 each, they’re still valuing their image over the value of the product itself.
3. They try to make customers feel important
Starbucks has a lot of in-house research and development and their employees are highly skilled, which is why their mugs look so elegant. They also make sure to maintain the coffee with the highest quality possible, because they want the customer to like drinking from the cup, instead of just putting it down after a few sips.
2. They only sell the most expensive mugs to high-end customers
Starbucks doesn’t sell their ordinary mugs for very cheap either, because they want to treat their high-end customers well. They try to ensure that only the best of the best get their hands on these cups, which is why they charge such a high price. Even if you buy a “tall” Starbucks coffee, it’s still only $1.25!
1. They don’t sell many mugs
Lastly, it’s worth noting that Starbucks does not sell its mugs to limit supply and drive up the price. This is because customer demand for their cups is so high that they’re making more money by selling them online and at physical locations. The company has 125 billion cups sold every year. If even half of those customers came into Starbucks and bought one, the company would still make a profit of millions of dollars, with not even a drop in revenue.
Thanks for reading and if you have any comments please leave them below. We hope that this article gives you a good understanding of why Starbucks mugs are so expensive.
Frequently Asked Questions:
Can you reuse Starbucks cups?
The cups are made of paper, which means it is not un-recyclable. However, people are discouraged from using the same cup more than once because the paper may have traces of their saliva left on it which can cause illness. Another reason why people shouldn’t reuse cups out of hygiene concerns is that bacteria can grow in hot liquids like coffee and tea. This would make it hazardous to re-use any warm liquid container, not just from Starbucks.
Are Starbucks tumblers worth it?
My mom always drinks her morning coffee in a tumbler. I’ve seen others do it, too.
It’s convenient because it’s just easier to drink out of a tumbler instead of a mug or cup (unless you’re drinking hot tea or something). The reason is that no matter how you hold your drink, once the lid is securely on and the beaker is in the right spot, there is nothing you can do to spill it.
The other reason is that the tumblers keep your drink hot for a long time. I’ve seen my mom leave hers inside her car, and it’s still hot when she leaves work. The last time I did this with a stainless steel vacuum insulated travel mug, it was still hot when I got home 5 hours later.
Tumblers may be disposable (and therefore waste), but they’re convenient and practical.
Are Starbucks mugs worth money?
The simple answer is yes. Many people have found them to be of an extremely high value. You can pay anywhere from $5-50 or more for these mugs, according to the demand and rarity of the mug.
Starbucks has been offering special edition mugs since 1997 and they’re designed by artists who reflect on the memories they share with their friends over a cup of coffee. These mugs are also a great way to collect limited edition artwork as a gift or trade.
Recently, 1.5 million units of limited edition “Jurassic Park™ mugs” were sold worldwide. They cost $2.95 each, and the proceeds go towards funding a wildlife conservation project. In 2003, 7 million units of a holiday-themed ‘Rudolph™’ mug were sold and in 2005 4 million units of a ‘National Parks’ coffee mug was sold at a retail price of $35 per mug with the proceeds donated to the National Park Service Centennial celebration.
In addition to collectibles, a few collectors have made huge purchases on eBay for their mugs. The most expensive known mug sold for $4,000, but there are plenty that sells for just a couple of hundred dollars.
Here is a list of which some of the rarest mugs are:
‘Wizard of Oz™’ (1997) – This one sold on July 21, 2005, on eBay for an amazing $1,200.00 and went to someone in Michigan. This was one of the first special edition mugs. There are only 1,000 of these in existence.
‘Special Edition Holiday Mug (2001) – This priced at $35 is the most expensive Starbucks mug to date. It sold for a total of $4,201.50 on eBay on June 4, 2006. The proceeds went to Heal the Bay and their efforts to provide clean water to schools and communities in Santa Monica Bay which is polluted from storm runoff from streets and parking lots as well as by industrial dumping.
‘National Parks – Anniversary Edition’ (2001) – This was one of the first Starbucks mugs that were released. There were only 5,000 of these produced and they sold for $35 each a few years ago. eBay purchased this in mid-2004 for a total of $1,142.50 on December 14 and then it went to the buyer in Arizona.
‘Rudolph™’ (2005) – This is the most popular Christmas mug by far. This was one of the most popular mugs this holiday season and it sold for $1,175.00 on eBay on December 14, 2005.
‘Jurassic Park™’ (2006) – This very special edition ‘Jurassic Park™’ mugs have been selling for $40 each and have only been released in the UK and Ireland at this time. Limited to 1.5 million units worldwide in
January 2006, there are just 500 of these still available from Starbucks in London according to their website.
The values on eBay are just a few examples of what you can expect to pay for these collectibles down the road as well. It is also interesting to note that different colored mugs hold different values. Most people don’t even realize this, but “green” mugs are much more valuable than other colored mugs.