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A Cup of Joe

McDonald's will soon spend $100 Million marketing their new McCafe's featuring $2.29 tall latte's. The powers to be calculate their market to be worth a cool $1 Billion. My bets are with them.

But let's face it. That's a lot of money for a cup of Joe. Let's look at the choices available:

1. At-home brew per cup:    $.25 2. At-home packet per cup:  $.65 3. Fast-food per cup:           $.89 4. Gas station, any size:      $.99 5. Tim Horton's, Dunkin'       $1.19 6. Starbucks, tall:                $1.49 7. Office blend:                   FREE

If McDonald's can get you to upgrade your coffee purchase to $2.29, imagine the profits they will make. Imagine the increase in sales. And imagine why you would upgrade in the first place.

All for a cup of Joe. And here is the biggest reason why McDonald's will succeed: coffee is addicting and once we form a habit where we buy, we stick to it.

What are you drinking?

Happy Tuesday!


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