Why Starbucks Still Makes Money Off Groupon Deal

I swear I have not been keeping secrets from you. However, I was sworn to keep my mouth shut on all of you caffeine induced readers. I understand though that you may need that morning cup of coffee to stand reading another one of our articles. Fortunately enough for you, I do not drink coffee, and you still have my full attention.

This morning Groupon is offering a national deal with Starbucks, to offer a $10 gift card for only $5 (affiliate link). A a typical cost of $3.25-4.25 per coffee, you should be able to get at least two servings out of this offer.

For those that may not know, Groupon offers deals at typically at least 50% of their value. The vendor than keeps 50% of the proceeds, and Groupon keeps the other half. Though I would suspect for a large national deal like this, Groupon takes a lot smaller piece of the pie just by the sheer “buzz” that is caused by offering a Starbucks offer. However, assuming the 50% commission still holds true, it means Starbucks is getting paid $2.50 for your $10 in value.

Coffee bean prices have been falling significantly over the past couple of years, meaning to make that cup of latte costs just pennies. Surely the cup used to serve your hot java probably costs more than the liquid gold inside. Which means regardless of how this offer was served up, Groupon and Starbucks come out ahead, or at least that is my presumption. Feel free to prove otherwise in the comments.

This offer only runs though the end of the day tomorrow, so grab your before they are gone.

Save Money, Travel More!

Source: InACents

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