​Starbucks Cutting Prices On Whole Bean Bagged Coffee​​

By: | 04/15/2013 01:05 PM ET

Starbucks is cutting their prices in order to compete with their competitors. The global coffee company is lowering the suggested retail price on their 12-ounce bags of whole and ground coffee from $9.99 to $8.99 in supermarkets and retail stores.

Starbucks Cutting Prices

In addition, they will be cutting the prices on their Seattle’s Best coffee from $7.99 to $6.99.

“This will allow us to both enhance the value that we’re providing our existing packaged coffee customers, and hopefully increase the frequency which they purchase Starbucks and Seattle’s Best coffee, as well as attract new customers,” said Jim Olson, a spokesman for the Seattle-based company. Starbucks Via instant coffee, K-Cups and Verismo pods aren’t affected by the price cuts, he added.

Only time will tell if this is a smart move for Starbucks.

Starbucks raked in $380 million from non-café sales last quarter — with a profit of about $2.55 per bag, says Kyle Stock at Bloomberg Businessweek. “Take away $1 per, and Starbucks would have to sell 65 percent more bags to book the same amount of profit.”

The new prices will go into effect on May 10.