Starbucks Sells $450 Cards
Shares of Starbucks (NASDAQ:SBUX) have done especially well this year. Year to date, shares of the company are higher by an astounding 50 percent amid broad market strength, impeccable comps, and store growth in all of its market segments. The company has truly created the most loyal customer base on the planet. As a result, the company has the ability to offer its $450 gift cards to the public once again.
Last year, Starbucks offered 5,000 premium cards in a stainless steel color they reportedly sold out in about six minutes. To put these sales in terms of revenue for investors, that’s $2.25 million worth of gift cards in 360 seconds. However, this year, only 1,000 of the cards will be sold for a total of $450,000. Why the drop in sales? Well, the company wants this year’s card to be even more exclusive and premium.
The fancy looking card comes in a rose metal finish and carries a $400 balance plus a gold level rewards membership. A $50 premium will be added to cover the laser etching and other manufacturing elements of the card itself. Either way, coffee connoisseurs are getting themselves one nice piece of swag for their wallet. For Starbucks, the ability to sell such high priced cards at inelastic demand is truly impressive. How many retailers have the ability to sell a gift card for more than its worth? Not many. If you’re looking to buy one of the cards, act quickly at 12 P.M. eastern. Gilt.com will be the only retailer offering the card for sale.
At the time of this writing, shares of the company were higher by one percent on the day to $80.50. The S&P 500 was higher by 0.92 percent to $180.65.
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