You're asking a good question. But generally there's less money to be made in cheaper products.
Compare a Dollar General to an Apple Store, it's pretty obvious which company is more successful.
Krispy Kreme and Five Guys come to mind as businesses that were focused initially on one singular product. But they weren't necessarily focused on being cheaper. They used the savings of focusing on singular products to increase their overall growth.
Also... when it comes to coffee the cost savings you're describing aren't necessarily enough to motivate a consumer.
A small cup of coffee at starbucks is $1.55, at McDonalds $1... at this point it's kind of like driving out of your way to save a few cents on gas. Some people do, but not necessarily enough to motivate an entire new business model.
supergooduser t1_jaem253 wrote
Reply to comment by stairway2evan in ELI5- Given the average cost of a cup of coffee is marked up about ~80%, why hasn’t a company come in and charge significantly less to take a greater share of the market? by Educational_Sir3783
Good description, but to add:
I have a business degree.
You're asking a good question. But generally there's less money to be made in cheaper products.
Compare a Dollar General to an Apple Store, it's pretty obvious which company is more successful.
Krispy Kreme and Five Guys come to mind as businesses that were focused initially on one singular product. But they weren't necessarily focused on being cheaper. They used the savings of focusing on singular products to increase their overall growth.
Also... when it comes to coffee the cost savings you're describing aren't necessarily enough to motivate a consumer.
A small cup of coffee at starbucks is $1.55, at McDonalds $1... at this point it's kind of like driving out of your way to save a few cents on gas. Some people do, but not necessarily enough to motivate an entire new business model.