66. How to Tell if You're Pricing Correctly

SUMMARY: In this episode we dive deep into the pricing strategies that help coffee shops thrive, even in a challenging economic landscape. Aaron, Ben and Drew tackle the big question every coffee shop owner faces: "Are our prices still the right prices?" From minimum wage hikes to fluctuating ingredient costs, they discuss why regular pricing evaluations are essential and how to decide which drinks need a price adjustment without alienating loyal customers. Drew and Ben share insights into their own experiences, including how to factor in competitors' prices, balance high and low-margin items, and even run promotions to make price increases feel like a win for customers. They introduce Ben's "Cost per Cup" tool, a powerful resource that provides a clear breakdown of production costs, so shop owners can make informed decisions about pricing. Listeners can get a free copy of this tool by reaching out on social media—just comment "Cost per Cup." Whether you're a new shop owner or scaling up, this episode is packed with practical advice to help you keep costs in check while ensuring customers feel they're getting value. Plus, hear how Drew and Aron are navigating the process of opening their third location and the challenges that come with it. Tune in for a thoughtful conversation on pricing, strategy, and finding the sweet spot between profitability and customer loyalty.   Minute by Minute: 0:00 Introduction 3:53 Are our prices still the right prices 15:12 Positioning based on competitors 19:25 Frequency of raising prices