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View Full Version : 20oz vs 2ltr pricing question



shadowlp06
01-07-2007, 05:43 AM
I think I've seen this before but I'll throw it out just in case. How come in alot of places its more expensive to buy a 20oz soda than it is to buy a 2-liter bottle? Just curious. Is it anything to do with the convinience factor? People paying more just to have something thats convinient? Thanks for your input.

jobbie
01-07-2007, 06:55 AM
in the UK the average price of a 2litre bottle of Coke is £1.45 which is around $2.79, a 500ml bottle is 89p which is $1.70.
So for a extra 56 pence you get 1.5 litres, yes you pay for convenience.

[ 01-07-2007, 06:00 AM: Message edited by: jobbie ]

Mr Zabe
01-07-2007, 07:50 AM
The quick and most agreed upon answer is that most people want convenience over value. They are willing to pay a premium for a 20oz soda pop. Most of us would not want to drive a car,go to their health club,buy a soda out of a machine and on and on....a 2ltr bottle is too awkward to tote around. So they will pay a $1.25 for 20oz even though they can get a 2ltr for a cheaper price.

[ 01-07-2007, 06:52 AM: Message edited by: Mr Zabe ]

rackitup
01-07-2007, 01:33 PM
I hear in Japan they take convenience a little further, for example there are two or three sizes of Coffee in vending machines with the same price.

BTW most stores don't have Cold 2 ltr's.

DGibb
01-07-2007, 01:42 PM
rackitup -- That is 100% true. Coke vending machines would have the 8oz cans, 500ml cans, and 750ml tall boys for Y120 (approx $1.20 when I was there). The 500ml bottles and bottlecans (my favorite, since it was resealable aluminum) were Y150 ($1.50).

I loved Japanese vending machines. I took so many pictures of them. I found one in Hiroshima that sold can coffee, juice, pop, beer, scotch, sake, and even a 6-pack of beer. It was about 8 feet wide. Amazing machines, and they kept hot and cold drinks in the same machine.

golee1
01-07-2007, 03:21 PM
You do pay for the convenience, but you also have to consider you're helping to pay for the cooler the 20 ounce are in, plus the electricity to run said cooler. The time to merchandise a case a case of 20 ounce is much more than for the shelf, so that is also a factor.

rackitup
01-07-2007, 08:12 PM
Originally posted by golee1:
You do pay for the convenience, but you also have to consider you're helping to pay for the cooler the 20 ounce are in, plus the electricity to run said cooler. The time to merchandise a case a case of 20 ounce is much more than for the shelf, so that is also a factor. Trust me 20 oz. PET is Far and away the most profitable package/container the bottler sells.

golee1
01-07-2007, 08:15 PM
Absolutely

cokepa
01-07-2007, 09:39 PM
It's also the most profitable for the retailer.

iluvsurge220
01-07-2007, 11:40 PM
Man, I remember about 10 years ago when I could get 20 oz. Sprite's and Mello Yello's for $0.39 I wish they were still that cheap:(

BluejacketT
01-08-2007, 01:34 PM
No wonder why the price on the 20oz went up. It was 99 cents the first time I saw it in Price Cutter in Muskogee.

NRGSLLR@
01-08-2007, 03:19 PM
It is one hundred percent a function of profitability for the beverage distributor. Consider that the average case of cans sells at $5 and it costs approximately $2.75 - $3.00 to produce that only leaves $2 a case for transportation / delivery / promotion and profit. As you can see there is no money to be made in 12 oz cans, that is why beverage companies continue to increase the base line cost of 20oz. Once the retail got over $.99 a bottle, it really didn't matter how far over $1.00 the retail is, the consumer sees magic numbers when they look at cost. $.99 is one $1.49 is the next one the beverage companies will have to deal with when there 20oz get up to that retail. It's all a matter of consumer perception and what they feel is a fair price.

CStoreCatMan
01-09-2007, 02:47 PM
Yes, yes and yes. Convenience is the number one answer for the higher price of 20oz. Secondly, NRGSLLR is right to say there is very little profit to be made from cans. PET is the way to go if you want to make money. I believe on average, a case of 20oz product equals around $4-$5 profit for the bottler.

mofizz
01-09-2007, 03:43 PM
Convenience is the answer indeed. Also, a 2 liter is considered take-home whereas 1 liter and 20oz is considered single serve. Same reason a bottle of beer at a bar is $2.50-$3.00, and a six-pack from the store is about $6.00.