Pricing on the two major soft drink product lines vary throughout the United States. Remember, producing and selling either Coke or Pepsi to the end user involve three parties. Producing is usually done by local bottlers who pay for this right. Putting the name out to the public and probably alot of marketing fall upon the company. Finally, vendors, who sell the package products, are similiar to gas stations owners, all sell at about the same price or try to push the product out the door quickly.
IMHO, the following are reasons that effect what consumers pay. These are not in any particular order.
1. The cost of sugar and/or other sweetners.
2. The cost of labor. Having Teamsters restock displays and shelves at local supermarkets in my area, has to be added into the price.
3. Does the retailer want to draw customers into the store with a bargain? The idea behind loss leaders are get the consumers in the door and hope they remember to buy other things.
4. The value and cost of space and visibilty to the consumers. It starts from being on page one of the weekly store ad, to end caps and lots of shelving in the market, and finally, agreeing to pay for unofficial help. Again, these increases are past on.
5. For the cost to produce, transport, and sell either brand, an average person would assume the price could be cut in half and everyone would make money. But like Kellogg cereals, big money goes into convincing the public to choose my products over both the other other guy and cheap brands. Two weeks ago, a local grocery chain has Vess, distant third in sales, on sale with three two liters bottles for a buck.
6. Finally, although both Coke and Pepsi, each with a loyal base, sell billions annually, occasionally they will fight in a market just to pick up a point or two on the other guy. A win win situation for the consumers until normality returns.
I don't want to step on anyone toes with how better is my bargain on Pepsi. For me, I may from time to time catch Pepsi on sale. While at the store, I will buy other necessary items.
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