As a barista working at a local Vancouver coffee company, I am still often surprised at how much people are willing to spend on coffee. I get customers paying $4 for a medium vanilla latte, and often, they come back in the same day to get another one.
Why are people willing to pay so much for their cup of coffee? I certainly wouldn’t pay $4 for a latte, but I admit that I am a bit biased. Despite working in a coffee shop, I prefer tea and therefore do not understand the “I need my caffeine” antics of these latte lovers.
Perhaps it is for status, and the image they want to be perceived. Holding a cup of coffee in one hand from a local coffee shop instead of Starbucks maybe gives off the image of being different, not being part of mass consumerism.
Maybe it is for the experience of watching talented barista (ahem, like me) make their lattes, customized to their preferences and served with a friendly smile. Recently, I finally learned how to make latte art, and watching the customer’s reactions when they see a leaf or a heart on their lattes definitely shows they are happy to get value from their purchase.
Each customer is different, but sure enough, they are paying the price that they perceive is the value they are getting back in exchange. It does not matter that they could brew their own coffee for less than a dollar a day and get the same amount of caffeine. They believe the $4 lattes are worth it, and that’s what keeps them coming back for more.