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The $50 gift card that costs $200

 
slate.com
slate.com
Published April 21, 2015

Starbucks economics

The $50 gift card that costs $200

Usually when you pay $200 for something, you expect to get roughly $200 of value, especially when that thing is a gift card. Starbucks does not subscribe to this philosophy. For Mother's Day, the coffee chain is rolling out its first-ever limited edition gift card to "treat mom." The card is "metal and ceramic" with "laser-etched floral details and satin ceramic finish." It comes in a "beautiful gift box with matching design." It's preloaded with $50. It costs $200. Crazily enough, this isn't the first time Starbucks has tried a 300 percent markup. Last holiday season, the company introduced a "silver" card that also retailed for $200 and came with $50 toward Starbucks purchases. With that item, Starbucks defended the cost as the actual value of the sterling silver that went into making the gift card and key ring it came on. If paying four times the value for something is your jam, you can go order this year's Mother's Day gift card online now. And hey, this isn't a total ripoff. That extra $150 also gets you free shipping! — Alison Griswold, Slate.com