February 26, 2008

pepsi economics

Ok so I have this habit of drinking diet pepsi. I drink enough to be an expert on where the deals are for a little can! Busy guy I know. Anyhow interestingly enough the other I go and buy a can on my way to work, the traffic was brutal, so may as make the journey enjoyable. I get to the counter and I'm charge 1.61$ for one 357ml can. I don't even clue in right away and pay, then I turn aroun and I ask did you just tell me $1.61? Yes sir - with the taxes going down they are increasing the price... Forget it I think just carry on. So the next day, it's snowing a lot in Ottawa these days so traffic is often brutal in the morning, so I stop at another corner store. I go get a can and I read $1.61 for 2 pepsi cans, so did I just get scammed yesterday? I go to the cash and the guy tells me "do you like diet pepsi?, I have the two liters behind you for $0.99" I looked at him and I said I don't like diet pepsi that much, but thanks for the offer. Now just yesterday I paid 1.61 for one tiny 355ml can and today this guy is offering me 2L of this delicious beverage for $.99. The cans are lucrative business and on 2L they make it on volume? what volume. It's still takes 5.5 cans to make up a 2L, what are those insane margins on a can so that pepsi is still making money on a two liters, for a prices that is no where being 5X.

1 comment:

Matt Hately said...

You have just witnessed the genius of market segmentation my friend. An MBA at Pepsi has you profiled as a busy guy and knows you'll pay extra for the convenience of the can, because you're not about to drive down the highway chugging on a 2L bottle (well, I guess you could, but it certainly won't fit in a VW cup-holder).