Arbitrage, Or Just Business Savvy?

As I read the Division of Labour Blog, and read the Starbuck’s post from April 7th, I actually agreed with the comments. But then after thinking about it for a minute, I realized they charge ridiculous prices for their coffee because swarms of people come everyday, willing to do so! Why would Starbuck’s offer their coffees, etc. for anything less, when they have such a large, and continually growing clientele willing to shell out big bucks? While I would never personally fork out that kind of money for a beverage, apparently Starbuck’s has found a way to capitalize on people with deep pockets, or cravings. No one can deny Starbuck’s has found a way to make good on the simple idea of a cup of coffee turned espresso.

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