Taste of Success: The Starbucks Story

FREDERICKSBURG, Va., April 11 /PRNewswire/ -- How has Starbucks achieved its phenomenal success? The April issue of Selling Power magazine reveals the secrets of selling an "experience."

The Starbucks story in a word? Growth. Relentless, exponential, dizzying growth. In October 2005, the stock underwent its fifth two-for-one split since its initial public offering in 1992. That means that if you bought one share for the IPO price of $17 your investment would now be worth $527!

The founders of Starbucks, writer Jerry Baldwin and teachers Gordon Bowder and Zev Seigl, began their business as sellers of coffee beans, offering samples of their coffee to buyers. They were joined by Howard Schultz, who envisioned selling coffee in stores with an ambience that would become "the Starbucks experience." The mood is created with soft jazz, indirect lighting and the aroma of coffee in the air. It's no wonder that "Starbucks" may become a synonym for "coffee" the way that Kleenex is a synonym for facial tissue.

Starbucks is the leading retailer of specialty coffee in the world. At last count, they have more than 10,000 retail locations. The company opened 1,672 stores in 2005 -- a figure considerably higher than their projection of 1,500, and one that makes their 2003 promise of "a store a day" seem positively quaint. During the same period, net revenues increased 20 percent to $6.4 billion and net earnings increased 27 percent to $494 million. In other words, as fast as revenues are expanding, the profitability percentage is expanding even faster.

Also in the April issue, Selling Power explores new research that reveals a buying bias based on emotion. According to the latest research, buying is a lot more emotional than anyone thought. Much selling misses the boat because it doesn't have a clue as to how buyers really make purchasing decisions. This article makes for engaging reading.

In the Training section, Selling Power focuses on the art of coaching. While it is often misunderstood, coaching can be one of the strongest tools a manager can use. When done correctly, coaching is a dialog with input from the sales rep. Coaching should strengthen the relationship through mutual success and build rapport between the manager and the rep.

Selling Power's April issue brings you these and other articles to increase your selling power. Check it out!


Source: Selling Power

CONTACT: Helen Moriarty of Selling Power, +1-540-752-7000,
Fax: +1-540-752-7001, or HelenMoriarty@sellingpower.com

Web site: http://www.sellingpower.com/