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Why Starbucks Sells a $2700 Espresso Machine
Yes you read the correctly.
Starbucks sells an espresso machine for $2700.
And you thought paying $5 for a latte was crazy.
Let me explain their reasoning in a minute…
…with some help from Perry Marshall’s 80/20 Sales and Marketing book.
If you don’t have a copy I highly recommend grabbing a copy as soon AFTER you finish reading the amazing email.
Are you familiar with the 80/20 principle?
It’s also known as the Pareto Principle.
Richard Koch wrote The 80/20 Principle and Perry Marshall applied the principle to sales and marketing.
In a nutshell, 80% of your revenue comes from 20% of your customers (probably your favorite clients).
80% of your customer service complaints come from 20% of your customers (probably your “pain in the ass” clients who invested in your low-end products).
You can apply 80/20 to almost any scenario and the consistency is incredible.
To see this for yourself, Perry created an 80/20 measurement tool at www.8020curve.com.
Back to that $2700 espresso machine.
