Re:The Coffeeshop Fallacy
by JohnFen on Saturday March 11, 2023 @11:04AM
(#35109455)
> IMO mostly on the “willingness to pay” side.
That's nearly always the most important factor, and it always has been. But you also have to recognize that there are different markets even for the same product.
McDonald's is selling their coffee and pancakes to a customer base that is looking for a specific benefit: something hot, fast, low-investment and inexpensive that will fill their bellies on their way to do something else.
A business such as what nobleach is talking about isn't trying to serve people with those needs. It's satisfying a completely different set of needs: relaxation, a pleasant atmosphere, a place to pause for a while. Luxury. They'll want higher quality food and drink, an "experience", and such.
It doesn't matter that it costs more than McDonald's because both of those sorts of businesses are selling different things. Comparing them is apples-and-oranges. Isn't really about the coffee and pancakes.
That's nearly always the most important factor, and it always has been. But you also have to recognize that there are different markets even for the same product.
McDonald's is selling their coffee and pancakes to a customer base that is looking for a specific benefit: something hot, fast, low-investment and inexpensive that will fill their bellies on their way to do something else.
A business such as what nobleach is talking about isn't trying to serve people with those needs. It's satisfying a completely different set of needs: relaxation, a pleasant atmosphere, a place to pause for a while. Luxury. They'll want higher quality food and drink, an "experience", and such.
It doesn't matter that it costs more than McDonald's because both of those sorts of businesses are selling different things. Comparing them is apples-and-oranges. Isn't really about the coffee and pancakes.