Essay Question
Completion requirements
You are the owner of a small independent chain of coffee houses competing
head-to-head with Starbucks. The retail price your customers pay for
coffee is exactly the same as Starbucks. The wholesale price for roasted
coffee beans has increased by 25%. You know that you cannot absorb this increase
and that you must pass it on to your customers. However, you are
concerned about the consequences of an open price increase. Discuss
three alternative price-increase-strategies that address those concerns. (15 points)