#1 By: Jason Fitzpatrick, October 26th, 2013 13:40
#2 By: Farris, October 27th, 2013 01:38
Ok. So why the Devil did it go from 5 cents for 6.5 oz in '59 to 75 cents for a 12 oz can in the vending machines? Or, $1.35 for a 20 oz bottle 54 years later? Jiminy Cricket! And don't gimme no smear about inflation, he said almost a century, at 5 cents!
#3 By: Ryan C, October 28th, 2013 10:03
Actually, it IS the "smear" that is inflation. They managed to avoid inflation for that long, but it can't last forever. New company owners, bottling contracts and companies change. Methods of distribution become different and more expensive (not to mention wider, geographically). Plus legal requirements not all that required in the 19th century - the type that makes every large company have its own internal legal department, just to keep up on regulatory requirements. Costs of utilities (rent, power, water, trash, and internet) go up, as do new methods of advertising. Plus, not to mention, a higher workforce to meet increasing demand (population growth), which turns into higher total wage payments, insurance premiums, etc.
A company can ignore inflation only for so long.
#4 By: Farris, October 28th, 2013 19:48
I guess my real gripe is with the economics that drive the price changes. I mean, look at this:
6.5 oz @ .05 cents = 1.3 cents per oz
12 oz @ .75 cents = 6.25 cents per oz
20 oz @ $1.35 = 6.75 cents per oz
That shows an average of 600% increase! 600! I don't think inflation went up that much in 54 years. I know you can justify an increase, I'm a businessman and have to increase my prices occasionally. But what keeps me in business in my highly competitive area, is recognizing that if I jack my prices up too much I'll loose customers, plus I like to make sure I'm giving my customers the most bang for their buck, it's one of the reasons I stay busy. I know once you've got "Brand Recognition" you're pretty much safe from the kind of thing I have to deal with, but at the same time, once you get into that kind of zone, you should also realize that you help drive up inflation as others try to keep up, or, make enough to buy your product and other factors. IMHO, any business that uses the phrase "What ever the traffic will bear", or, that can have it applied to them, is helping to drive inflation up and needs to throttle back.