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When Will Starbucks' Prices Get Too Hot?

Stocks in this article: SBUX

NEW YORK ( TheStreet) -- Coffee chain Starbucks (SBUX) has been adjusting its prices in several markets for about a year since it switched to a different pricing model.

Prices in the Northeast and Sunbelt areas were raised recently about 1% on average, according to Starbucks spokesman Jim Olson. He added that the price of the grande-size brewed coffee, which is Starbucks' most popular drink, hasn't been changed in any market.

The "dynamic" pricing model Starbucks uses takes into account products' relationships to each other and customers' purchasing habits, explained Piper Jaffray analyst Nicole Miller Regan.

As prices of your favorite Starbucks items increase, will you continue to make purchases at these establishments or will you go elsewhere? Take our poll below.


Will you stop buying coffee from Starbucks due to the price increase?

Yes -- The price increase is outrageous.
No -- I'm a Starbucks addict.

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