The author needs to take a small business class. Sure, the water, coffee and cup may not add up to $.50, but what about the lease on the building, lease of the equipment, the wage of the people working there, etc...?
I assume he meant the consumer could make it himself at home for .50, thus saving 3.50.
"The author needs to take a small business class"
Exactly. They are not selling a commodity and they are also a for profit company.
Go to any restaurant or grocery store and see if the input costs have any relationship to the price of the product.
I do buy this type of coffee. I try to buy it from places that have equal or better products than Starbucks.
There are some really good locally owned places in my area. They seem to have a few less of the Birkenstock crowd than Starbucks also.
see post 35... ;)