People drink coffee everyday, it's a very common product. How can we make it special? Here is a new idea: By mixing the extremely rare Kopi Luwak bean freashly 'expellded' from a rare Indonesian cat through its faeces into coffee, one London entrepreneur has created an exotic new coffee brew in London that sells for 50 pounds/$100 a cup. Would Ripley believe this?
I think it's a really good idea, the price will get attention for people. People will think why the price is so high? And then they will interest in it, they want to try it. If the coffee is really nice, they'll think it's worth buying it. So they add the value to coffee and low cost make more profit. It's easyer to break-even.
However, high price also can be weakness, it's very expensive for many people, so that make the market smaller. And if we want to make this business bigger, the fixed may very high, because they need to buy a lot of shops to sell coffees. So it's better to open shops in some big cities and in some developed countries. That means open shops which people have high income.
Diseconomies of scale
7 years ago
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