Anybody that knows me also knows that I am a Starbucks fan. I am a gold card carrying customer that frequents the green and white (surely cracked laced beverages) coffee house up to 5 times a week. However, after this last price increase I have drawn the line. There is a reasonable if not stubborn part of me that refuses to pay $5.05 for a flavored coffee! Part of the problem may stem back to the days when I was working at a pizza chain (and I know I may be aging myself a little here) making $4.25 an hour. What I don’t understand is why other people aren’t concerned about this current price hike. I guess I’m the only one that can’t afford the extra $100 a year it would cost to support my habit.
Doing some research I’ve discovered that the whole hike in coffee has nothing to do with the raise in Starbucks prices. Perhaps they are taking advantage of the news that coffee bean prices are up 70%, 90% even 100% depending on what news report you care to believe. Starbucks has confirmed that they have enough beans already purchased to support the remaining of this year and 40% of next year (2015). Regardless of why the price hike was necessary I will not be partaking in venti Cinnamon Dolce Lattes or Skinny Carmel Macchiatos any time soon.
So here is the breakdown of what I will be saving by passing on the fancy coffee. Lets say I did go 5 times a week. If I quit cold turkey today I would be saving $25.25 a week. Lets take this one step further.. In a month it’s an extra $101. I’m sure you see where I’m going here.. In one year I will have saved myself $1212. It’s like any habit really. There are two types of people, those of us that look at it as saving money by suffering just a little and not having something we enjoy and those that say “you only live once and I’ll do whatever I want”. Well.. I view it like this.. If I don’t go to Starbucks and bank that money I will have saved up $6060 in 5 years.. I could take that money and spend a week in Bora Bora in one of those huts over the water (my dream vacation) or just have $6000 dollars.
Here’s the thing, Starbucks is taking advantage of the situation and profiting from it. You can’t blame them, they are in the business to make money and people will pay $5.05 for a large espresso. It’s a hard sale for me but hey, I’m frugal.. Guess my parents did teach me a little something about saving.