As I was lining up for my double-double and my timbits at the cafe outside DLam this afternoon, I came across an article from Globe and Mail which states Tim Hortons is raising its price on April. 11, 2011. As soon as I read the article title I got pissed. Not because of I simply don’t like price increase as a consumer, but also because of the fact that I have been loving Tim Hortons for there is not too much mismatch between their price and the quality of their products.
Since Tim Hortons launched a war with their “rim up” event to compete with Macdonald’s premium coffee, they are doing a pretty good job till now. However, it seems the winery is only short termed. Even though the price increase is declared to be very little, Macdonald’s premium coffee is already getting in Tim Hortons’ way with their cheaper price and better quality coffee. Below is the comments by people on Globe and Mail:
It’s not surprising to me that people’s reaction to this is negative. Tim Hortons cannot offer good quality coffee, it seems to me that they attract consumers with their lower price. However, they decide on giving up their competitive advantage. This would really drive consumers away to their competitors like MacDonalds. Timmy’s should probably reconsider this pricing strategy.
Suddenly realized I won’t be lining up like a fool outside the door of Tim Hortons’ by next week if their price is going to be increased. “Half of my life at school is at Sauder and half lining up for Tim Hortons,” as a friend of mine puts it, “I won’t line up for a steeped tea that’s more expensive than $2.00”