Like Starbucks [SBUX]?
Shop at Costco [COST]?
Have we got a deal for you!
Several people have reported that, since September 29-30, several Costco outlets have begun to sell the famous Starbucks Cards (hmm, I’ve been told, famous due to the posts here, for some odd reason) at a discounted rate: five USD $20.00 Starbucks Cards for USD $80.00.
Too good to pass up? Hmm… yep, if you like Starbucks and shop at Costco. 
Management: Starbucks
This is a definite win for Starbucks, since it increases traffic into their stores. The presumptive intent is most likely to allow gifters to bestow these Starbucks Cards to people who enjoy coffee but don’t necessarily frequent Starbucks; this would indicate a way to promote the Starbucks brand to those individuals, who in turn may be incentivized to sign onto the Starbucks site to register their cards.
The value for Starbucks regulars is less obvious: since they already visit Starbucks stores on a routine basis, the question is whether these discounted Starbucks Cards represent a true-value up-sale mechanism. For this, the anticipated unaugmented position is approximately a 50/50 split: some people will opt to try some of the new Starbucks products, which not coincidentally are rolling out now, while others will use the Starbucks Card value to increase or prolong their regular purchasing habits.
The augmentation of the Starbucks Card with the recently announced new Starbucks products and the return of the holiday products may shift the 50/50 split toward a 70/30 split, or even a 75/25 split, in favor of trying the new and holiday products, given the current financial climate. This is obviously a good campaign play on Starbucks’ part.
Management: Costco
This is a moderate win for Costco. They continue to do well, primarily due to the perceived increase in purchasing value as the global economy continues its downward spiral. However, lately, there has been a bit of a slowdown at Costco due to consumers’ need to purchase products in smaller quantities. Offering gift cards is a good way to attract customers who otherwise may forego visiting Costco; this will encourage a prolonged visit and presumably translate to additional sales that may not have otherwise occurred.
