Instead of cost-based or competition-based pricing, Starbucks believes in value-based pricing. Starbucks sells a coffee experience rather than just a cup of coffee. The company has made a concerted effort to set itself apart from other cafes. The Starbucks experience is enhanced by the decor of its coffee stores, the music played to relax you, and the types of products it sells. Starbucks has implemented a premium pricing strategy.