Cocacola Gouging the Public

[CPA]

People bitch and moan that Walmart sticks it to vendors and manufacturers with pricing. But if Costco does the same thing, it's Coke's fault. C'mon Pisa you can't seriously think this is just Coke's fault or that it's necessarily bad.

 

[CPA]

Pop prices have been crazy lately. $5 for a 12 pack? I've been cutting back intake quite a bit, but I haven't yet cut it out completely. I have precious few guilty pleasures and sweet, syrupy, caffeinated beverages are one of them.

Where the hell are you paying $5 for a 12 pack? Krogers has 5 12 packs for $11 this week. They usually have sales that have the name brands at $3 or less a 12 pack. Stop going to Whole Foods for your shopping

 

[Athena]

Coke can afford to make up the volume from other major retailers....and they will....in the grand scheme of things Costco is a drop in the bucket and when they realize how much they'll lose in profits from trying to show up Coke...they'll go crawling back and beg for the original price offered and Coke will just smile and say fuck you.

And in the grand sceme of things, Coke is not a big money maker for Costco. No one goes to Costco just to get Coke and Costco's net profit isn't going be affected if just drops Coca Cola products.

The reason Coke doesn't want to give Costco a better price is because it would inevitable lead to more concessions to other retailers. I don't know the actual figures but the margin on soft drinks is quite high. And the proportion of "this brand only" consumers is actually rather low. People have preferences but the market is very price sensitive. If the going price is four 12-packs for $9 (the promotional price here for most of the summer), they will go for Coke. If there are no promotions though, they buy All American from Sams or other store brands.

 

[69Mach1]

I'm pretty sure this only affects Coke's price to Costco, not the world at large. Most of the big retailers get special pricing, and some of them pass it on to customers. Some of them just pocket the money. Since we don't know the specifics of what's been going on, I wouldn't jump to any conclusions about who the bad guy is.

 

[K1052]

Really?...you don't think they sat down crunched the numbers and said...eh, so what...given their sales volume overall we would loose more money by giving them the price they want vs. losing them as a customer...cut 'em loose.

and you should REALLY check into your statement....because Coke sells more product through McDonalds at a MUCH higher profit than they would EVER make through Costco.

Coke can afford to make up the volume from other major retailers....and they will....in the grand scheme of things Costco is a drop in the bucket and when they realize how much they'll lose in profits from trying to show up Coke...they'll go crawling back and beg for the original price offered and Coke will just smile and say fuck you.

Without knowing more about what happened behind the scenes it's difficult to say. A drastic reduction in high volume sales locations for their various bottled products isn't a good thing, regardless of how it came about. Costco's business is much more important to Coke than Coke is to Costco.

Fountain is a whole other game entirely with a signifigantly different dynamic between the major food outlets and Coke/Pepsi.

 

[BladeVenom]

I already switched to store brand soft drinks.

 

[Wheezer]

And in the grand sceme of things, Coke is not a big money maker for Costco. No one goes to Costco just to get Coke and Costco's net profit isn't going be affected if just drops Coca Cola products.

The reason Coke doesn't want to give Costco a better price is because it would inevitable lead to more concessions to other retailers. I don't know the actual figures but the margin on soft drinks is quite high. And the proportion of "this brand only" consumers is actually rather low. People have preferences but the market is very price sensitive. If the going price is four 12-packs for $9 (the promotional price here for most of the summer), they will go for Coke. If there are no promotions though, they buy All American from Sams or other store brands.

Very true, but Costco has more to loose than Coke does, they have nothing else to take Cokes place on the shelf, but there are plenty of ways for Coke to replace Costco.

 

[BudAshes]

buying bulk coke at costco is as good as buying ciggarettes. Diabetes cause almost as many problems as lung cancer.

 

[Atomic Playboy]

It's not reasonable to compare the cost of soda going up to the cost of gas going up. For the vast majority of the nation, gas is a necessity; people frequently have to commute several miles or more to get to work or other responsibilities (school and whatnot), and even if you don't personally drive, the increased cost of fuel affects public transportation, air travel, etc., not to mention an increase in the price of goods that need to be transported (which is basically all your food). Consequently, an increase in the price of gas has far-reaching effects over broad sections of the economy, and that makes it newsworthy.

The price of Coke goes up? Drink something else. If Coke believes they can make greater profits by increasing the cost of their product, they will do so. They risk losing some of their consumer base by increasing the cost relative to competing products, but as long as they retain enough consumers so that the increase in price equates to greater profits, it is in the best interest of the company. They, like every other company, are trying to maximize revenue. Simple economics.

 

[GroundedSailor]

buying bulk coke at costco is as good as buying ciggarettes. Diabetes cause almost as many problems as lung cancer.

Actually I found buying Coke from supermarket weekly deals is cheaper than buying at Costco.

 

[WhipperSnapper]

I just drink zero calorie water, tea, coffee, and iced tea. I like carbonated beverages, but buying flavored carbonated sugar water has always struck me as a poor way to spend money. When I do want it, I'm happy to purchase the Walmart brand for far less.

So, if Coca-Cola wants to raise their prices, then fuck 'em.

 

[Gillbot]

I only buy whatever is on sale at $1.25/2lt or less.

 

[waggy]

LOl Costco is the highest volume seller? hahah fuck yeah.

its funny. costco is doing what many hate walmart of doing yet applaud them of it.

in the end its really not going to effect either much. costco is in no way in hell the highest volume seller of coke. and what they lose in costco is not really going to hurt them.

 

[OutHouse]

Loosing the highest volume retailer on the planet just before the holidays in no way whatsoever represents a win for Coke.

lol costco does not sell that much coke products compared to other stores like grocery stores or fast food.

 

[sandorski]

The only People being gouged are those who Buy Bottled Water. That shit is practically Free in every Home in the First World!!!!

 

[K1052]

lol costco does not sell that much coke products compared to other stores like grocery stores or fast food.

I should have qualified that as warehouse retailer. They still rank 4th overall I think.

Foodservice is an entirely different animal.

 

[RoloMather]

Do not buy coke if it's too expensive for you.

 

[piasabird]

After the cost of soda went up a while back, I drastically reduced my intake of soda and I use to buy a lot of soda. It was not but about a year ago when they raised the cost of soda by %30, and 2 years later they want to raise it again. This will hurt the poorest of the poor the most. Quit buying soda. You dont really need it.

Coke and Pepsi are oligopolistic whenever one company raises prices all the other few soda companies do the same thing. I dont believe thier costs have actually risen that much.

It is like they are purposely causing inflation.

 

[cubby1223]

Coke Reward points are nice too..it's like they are paying me for something I would have done anyway. Free car rentals, hotel discounts, etc....

What? I buy enough Coke, perhaps I need to look into this!

 

[ericlp]

I don't see why costco would care... Unless coke and costco want free advertisement for being in the news?

How much do you want to beat that they settle their differences in a few weeks and life is grand! Free Advertisements for all!

If pepsi bumped up it's prices and you were a store that carried it's products against other products that were cheaper... Then why would you care? You would know that more people would be buying the cheaper brand anyway. I drink soda and prefer coke, I guess I'd just wait for it to go on sale like I do anyway. I don't buy full retail price, and if I had to I'd just start drinking water or cool aid and start adding my own sugar to my water.

 

[KMFJD]

As a Coke drinker i would never purchase Pepsi as a replacement, i'd just make my purchase somewhere else.

 

[ScottyB]

Very true, but Costco has more to loose than Coke does, they have nothing else to take Cokes place on the shelf, but there are plenty of ways for Coke to replace Costco.

I think you fail to realize that Costco makes money off memberships, not merchandise. I highly doubt they will lose many members simply because they don't have Coke.

 

[Tom]

I thought the only reason to join Costco is so I can use a 60" plasma for 5 years then take it back and get a new one ?

 

[Schadenfroh]

People bitch and moan that Walmart sticks it to vendors and manufacturers with pricing. But if Costco does the same thing, it's Coke's fault. C'mon Pisa you can't seriously think this is just Coke's fault or that it's necessarily bad.

Indeed

As a Coke drinker i would never purchase Pepsi as a replacement, i'd just make my purchase somewhere else.

I prefer Coca-Cola products as well. Diet Barq's root beer is very good. However, these days I mainly stick to generic peach flavored diet soda. The Food Club and Sam's Club "brands" taste identical and actually taste much better than the name-brand equivalent peach sodas.

 

[jackschmittusa]

Coffee drinker here. The price of pop could go to $50 a 2l and I would hardly notice. (I don't even ruin good whiskey with it.)

I can't imagine buying bottled water and a summer soft drink for me is strong Kool Aid with very little sugar.