Why is your coffee still so expensive?

The average coffee shop in Australia now charges $2.90 for a cup of joe.

While this is down from $2 around the year before, the average price per pound has also dropped by 20% in the last six months, according to data from market research firm Technomic.

The company’s latest data showed that the average Australian coffee shop now sells around 70kg of coffee per month, compared to 90kg in 2016.

A cup of iced joe costs about $2, and a cup that tastes like instant coffee costs around $3.50, according a company spokesperson.

This is all part of the ongoing cost-cutting effort in the industry.

The world’s coffee companies have been cutting costs for years, and the price of coffee has increased over time.

While this trend has been fairly consistent over the last couple of decades, it hasn’t been driven by the cost of coffee.

A coffee shop on the outskirts of Sydney, Australia.

(Photo by Joe Raedle/Getty Images)In fact, the industry is starting to take on more of a price point driven approach.

“This is the first time in the coffee industry that we’ve seen that cost-per-cup pricing has been significantly lower than it was at the beginning of the year,” said Peter Gollop, director of coffee at coffee chain Alcoa, in an interview with Quartz.

Alcoa currently charges $1.50 for a single cup of coffee, and is seeing its sales drop by around 30% a year.

For the sake of comparison, a cup now costs about 20 cents.

Gollop said that the price reduction has helped reduce the amount of money spent on marketing, and that this is something that is reflected in the increase in sales.

“[The cost of marketing] is now a lot less expensive,” he said.

Even more interestingly, Gollow said that Alcoas sales are on a much more gradual decline, as customers are getting more creative with their coffees.

If the trend continues, he expects the cost per cup to increase, and coffee shops will have to start selling more coffee to keep their customers coming back.

“If they don’t have a lot of customers, then they’ll have to have a little more creative marketing, like marketing to those who aren’t coming in because of the price,” he explained.

This article was originally published by The Conversation.

Read the original article.

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