A couple of weeks ago Starbucks announced that it will use a couple of Seattle stores as testing grounds for selling a cup of coffee for only $1 dollar. While the idea is both innovative and a bold marketing move by Starbucks, after visiting New York City it seems like a natural reaction to the increasing competition of companies in the East Coast. Through my observations I found that most customers have a $1 markup as their reservation price for a single cup of black coffee. I discuss this trend in more detail on my website.