We’ve all heard it, standing in the queue or scrolling through comments online: “Five dollars for a coffee? It’s getting ridiculous.” It’s a sentiment that can put any cafe owner on the back foot. But it often comes from a place of misunderstanding, not malice.
We were curious about what Australians really think, so we did something that’s never been done before in terms of testing the power of education on coffee prices and value. We conducted a national survey of over 850 people to get to the bottom of what they believe is a fair price for their daily cup and how education can change that.
And the results were fascinating.
“When we empower our customers with knowledge, we build a stronger, more appreciative community."
The information gap: What we don’t know, we don’t know
One of the first things we discovered was a simple yet crucial information gap. Most Australians, when asked to guess the price of coffee in other global cities, anchored their guess to their local experience: somewhere between $4.00 and $5.50. This isn't a criticism; it's a reflection that most of us live in our own economic context. But, what happens if we widened that perspective?
Read What do Australians really think about coffee prices?
The education effect: A single sentence changes everything
So, we ran a simple experiment. We told them one fact: “For your information: In some major international cities, a small regular cafe coffee can cost between $9.00 and $10.00 AUD, and in some cases, up to $15.00 AUD.”
No persuasion. Just one sentence of context.
The result was immediate and profound. The moment they had this single piece of information, their entire perception of value shifted. Before learning the actual global price, the maximum price consumers were willing to pay for a small coffee was $5.18. Afterwards, that number jumped to $7.69. The optimal price they were willing to pay for a small coffee jumped by a massive 37%.
Let that sink in. The price consumers are willing to pay is not fixed. It’s flexible and it’s directly influenced by knowledge.
Read Cafes, don’t price low to raise later
The opportunity: Turning price conversations into value conversations
This is the most exciting finding from our entire study. It proves that the conversation around price doesn't have to be a defensive one. It can be an educational one. It shows that our customers are reasonable. When they understand the context, the story of the coffee, the skill of the barista, the costs of running a business, or even just how our prices stack up globally, their appreciation for what’s in the cup grows.
This is a powerful opportunity to be seized. As Australian cafes and specialty coffee culture will not survive without closing this value gap.
For every cafe that obsesses over experience, this is your invitation to become an educator. Share the story of your coffee. Talk about the farm, the roast, the craft. Help your customers see the incredible value they get with every cup.
When we empower our customers with knowledge, we build a stronger, more appreciative community. We create space for cafes to thrive, we foster respect for the craft and we ensure the vibrant coffee culture we all love continues to flourish.
