Starbucks for a dollar: Good move, Howard

Sarah Gilbert — Wed, 23 Jan 2008 01:10:00 EST

Filed under: Consumer Experience, Competitive Strategy, Starbucks (SBUX), Recession

Got recession? More importantly, got everyone thinking your company is being damaged by a recession, especially your new lower-income customer groups? If you've got all that and a falling stock, you must be Starbucks Corp. (NASDAQ: SBUX). And you must be in need of a new entry point for the cash-poor masses.

Enter the dollar cup of coffee. Long an item found only on the "secret menu" (but for more than a dollar), a short (eight ounce) $1 cup of regular coffee is being tested in the Seattle area, along with free refills on all sizes of brewed coffee. It's a smart move.

In a world where even the old-timers have stopped complaining about overpriced cups of coffee, showing up with a very low-priced entry level for a regular-sized dose of caffeine makes sense. Why not see McDonald's dollar menu, and raise Starbucks' own version? It's certain that the company won't lose money on the product; costs for traditional brewed coffee are the lowest of the bunch, and baristas often throw away large quantities of coffee because it's not fresh enough. Free refills could end up not increasing the company's costs at all, and do great things for customer goodwill. It's a decision I would have made; is Howard Schultz already making waves?

Starbucks for a dollar: Good move, Howard originally appeared on BloggingStocks on Wed, 23 Jan 2008 01:10:00 EST. Please see our terms for use of feeds.

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Yahoo! joins Google in tiny CEO pay

Sarah Gilbert — Fri, 02 Jun 2006 20:19:00 EST

Filed under: Press Releases, Management, Yahoo! (YHOO)

In a move sure to take cost savings to a newly symbolic level, Yahoo! said today that Terry Semel's salary would be reduced to $1 each year throughout 2008, just like the top management at Google.

[Aside: as someone who's often been responsible for payroll, I've always wondered how these checks were processed; is it paid all at once or split up into bi-monthly amounts of four cents each? And do they withhold FICA?]

In return, Semel received 6 million stock options at an exercise price of $31.59 per share, as well as the opportunity to receive up to 1 million additional stock options each year. Semel has made $429 million in stock rewards, in addition to his $600,000 salary -- so please don't start sending him your leftover cans of garbanzo beans.

Yahoo! joins Google in tiny CEO pay originally appeared on BloggingStocks on Fri, 02 Jun 2006 20:19:00 EST. Please see our terms for use of feeds.

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