An Analysis Of Starbucks' WiFi Claims
from the where's-the-benefit dept
While Starbucks is making noise about just how "successful" their paid WiFi in stores is going, they don't give out any actual numbers. Carlo Longino, over at TheFeature, goes through the announcement, makes some reasonable estimates and explains how much more successful the program would be if they gave away WiFi for free. It's not too hard to do the math and realize that Starbucks isn't getting that much money for each person subscribing to the WiFi service. They are, however, getting a benefit from those users buying high margin coffee-like products from Starbucks. Put those together, and you realize that free WiFi brings in more users who will buy more high margin coffee, and it completely wipes out any rationale for charging for the WiFi. It's not clear why no one at Starbucks or T-Mobile has been able to make this calculation.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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hotspots and coffee
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I do have a few ideas of better models that could be applied, anyone from starbucks hiring? hehe..
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Prices and the subscription model are the problem
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Starbucks and charging for wifi
I urge you all to protest and contact them at their website to let them know.
Our kids in college use them to study. We use them to get out of the house to focus.
At $5 a coffee there had better be something else besides the newspaper to keep us.
Please Please contact Starbucks, Borders and Barnes and Noble about this corporate giant bullying.
Debra
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