Starbucks' pricing.

I took notes on an intriguing conversation about Starbucks' pricing overheard at a coffee cart set up next to a hotel lobby. The Starbucks cart was operated by Aramark. The cart did a brisk business in spite of prices that did seem higher than Starbuck's prices found in "regular" Starbucks stores or kiosks. Here's roughly what I heard while sipping and waiting for a shuttle.

* "These prices are high, even for Starbucks."

* "$1.50 for a real orange seems reasonable for Starbucks, even though the orange is pretty small."

* "Do you know which coffee sizes are the best buy?"

* "The big ones they call 'venti.' I love that they call the small one tall."

* "Wrong! The middle one is the best buy per ounce. Few people buy it, so they charge less for it."

* "Wow. They are very smart, aren't they?"

* "You're both wrong. Every store is different. At supermarkets, where people know that the largest sizes cost less, the best buy is the biggest."

After hearing that conversation, I wrote down the prices of the Aramark-Starbucks and checked the prices at an Acme-Starbucks outside of Philadelphia. What I overheard was confirmed by what I saw, but I still wonder: How sophisticated is their pricing really? POSTED PRICES-Aramark Starbucks Size 12oz 16oz 20oz Cafe Mocha $4.00 $4.50 $5.25 Latte $3.75 $4.25 $5.00 POSTED PRICES-Supermarket Starbucks Size Tall Grande Venti Cafe Mocha $3.00 $3.55 $3.80 Latte $2.70 $3.25 $3.55