Would you be willing to pay $375 for a vibrant colored cup made out of plastic and metal? How about $200 for a used one? Sound like too much? Well, not if you’re part of a growing group of Stanley vacuum-sealed cup collectors. That’s right, Stanley cups, especially the 40 oz. Stanley Quencher H2.0 Flowstate tumbler, are in demand. The tumblers, sold as a durable and environmentally friendly option for outdoors enthusiasts, have been around for decades, sold in places like Target and REI. Now, thanks to some savvy marketing and the wellness trend, they’ve become a fashion accessory and a collector’s item as well, with eager buyers willing to fork over amounts two or three times the original cost of the cup, just to be able to add to their collection. As with other collector’s items like baseball cards and record albums, Stanley cups are subject to market fluctuations. Those cups that are only offered as part of a special, limited edition line such as the dual-branded Stanley x Starbucks cup command higher prices than everyday versions.
And it’s not just resellers who are benefiting from the growing popularity of Stanley cups. Stanley has seen its revenues jump 10-fold in just a few years, and that has caught the attention of some environmentalists. They note that while in theory the cups can be a sustainable option, that theory only holds when individuals buy one or two and reuse them for a long time, but not when they acquire many that then go largely unused. Indeed, critics note that the raw materials used in the tumblers and processes involved in manufacturing would require that the cups get years of use in order to offset the environmental impacts of production. One issue that may change the upward trajectory of revenue though, are recent reports that the cups may contain lead. While Stanley claims that there is no danger to consumers, it is too soon to know how the news will affect demand. For now, it seems that at least the Stanley people, as the collectors refer to themselves, are likely to keep expanding their collections, even if those with health concerns move on.
Discussion Questions:
1. Discuss behavioral economics as it relates to Stanley cups. How can it help explain why someone would pay $375 for a cup that normally costs about $60? Does it help explain why buyers looking for environmentally friendly options might choose a Stanley tumbler?
2. Do the laws of supply and demand hold when it comes to collectibles? Explain your response. Does your answer change if you consider the question in the short term versus the long term? Explain.
3. Comment on the recent surge in earnings at Stanley. Is overconsumption a factor? How do you think recent reports that Stanley cups may contain lead will influence demand for the cups and their price?
Sources| MarketPlace: https://www.marketplace.org/2024/01/12/inside-the-stanley-tumbler-collector-economy/?__s=hcsv4nt6ne4yaimm2p8z; NBC News: https://www.nbcnews.com/business/consumer/stanley-cup-resellers-attract-hundreds-of-dollars-online-where-rcna135305, https://abcnews.go.com/Politics/consumers-ditch-stanley-cups-experts-weigh-overconsumption-risks/story?id=106873913; https://www.nbcnews.com/science/environment/thirst-stanley-cups-raises-questions-green-stainless-steel-water-bottl-rcna136166; Unsplash: Photo by Florencia Simonini on Unsplash