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Long black same price as latte - fair?

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  • #16
    Originally posted by jonster View Post
    I guess we see price rationalisation in all aspects of life eg raspberries $7 for 150g oranges $3 for 3kg yet marmalade and raspberry jam cost the same!
    I don't think that comparison has any relevance. To paraphrase the common saying, you're not comparing raspberries with raspberries. The fruit that is grown for whole consumption is different to the fruit that is grown for jam. Therefore the costs are not the same.

    Some cafes could drop the price a few cents for long blacks, but on the whole I don't think they are rolling in little gold bars, so I'm happy to let them have that one.

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    • #17
      Then presumably the same thing can be said for food costs?

      The rule of thumb for food markups as I understand it is a markup of 400 per cent on the raw ingredients - which seems to hold true for most joints except perhaps those at the very top end which have to absorb excessive labour costs as well

      Having worked with chefs and developed menus for nearly 20yrs I can pretty much glance at a dish now and calculate what it cost to make pretty quickly in my head - then extrapolate from there what the markup is based upon the sale price

      Went for dinner on Brunswick Street the other night and worked out that the food had been marked up by 600per
      Cent on average - which would be fine if the dishes were well executed -
      But for the main part they were slapped together without much love

      So to me at least my original point still applies, if you're happy with the meal / coffee - or whatever - for the price you pay and you think it represents value for money based upon quality of ingredients and skill of execution, then that seems to me to be a fair deal

      Hell, I'd gladly pay more than $5 for a truly remarkable and excellent cup of coffee - especially if it can be repeated with precision - put i resent paying less for an ordinary one when I know I can make better myself at home...

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      • #18
        Originally posted by Gustopher View Post
        ....each of these elements have a trade off profit wish making some coffee orders e.g soy less profitable and some e.g black coffee more profitable from a raw material perspective. And that's the price both cafe owners and consumers pay for a relatively simple system. To actually base the prices on a fixed profit increase on consumables there would be such a wide variance in prices from one coffee order to the next it would be for more trouble than its worth.
        Yes, and any attempt at fixed profit rate would only be a fixed gross profit. They all absorb overhead, and not necessarily in proportion to their raw material cost.

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        • #19
          As with pretty well everything, value for money determines whether I will go back or not.
          Cheap coffee won't ensure a return visit unless it is good.
          Expensive coffee will only ensure a return visit if it is excellent.
          Long blacks are very 'quality sensitive' and I quickly forget what I paid for it if it is very good.

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