I noticed in a few of my chains today the prices on Energy Drinks.
Rock Star is $2.19...but Diet is $1.99, while the 8 oz can is $1.69. If their whole thing is twice the energy, why bastardise their brand by selling the smaller version too?
Rock Star 4 packs....$8.49...it costs you more to buy 4 in the box than 4 singles.
Hansens 8 oz is $1.99
Hansesns 16 oz is $1.79 (every day price, no post off). Hansens has a bad enough time selling as it is, why do that with their priceing.
Does anyone know why these companies that come out with 16 oz verzions, and actually get sales from them, come out with smaller verzions. It makes their smaller one look like a rip off. And most of these companies can only compete because of their 16 oz value. Not one of them have any numbers to brag about with their 8 oz verzion. Someone clue me in.
First of all I am sure you know Ron that chain buyers set their own pricing in the end regardless of the suggested retail price of the supplier. I do agree that many times this pricing system fails to make any sense.
Secondly, as the 16oz category leaders grow and establish themselves, the natueal progression is for them to come out with different packages. It's called "Multiple sizes of a Brand Favorite."
My first guess would be shipping costs. For example Rockstar could cut shipping costs nearly in half by shipping 8.4 oz instead of 16 oz.
From the retail price it appears they have maintained their existing wholesale price per case.
A little money might also be saved at the production end, but not much. The Taurine sells for about 0.5 cents per 1,000 mg and the 8 oz cuts the 16 oz cans 2,000mg in half.
There are 12 cents of added profit per case.
Flavoring would result in smaler costs savings.
Production cost of both cans is nearly the same .
Like wise no real saving on less water used.
I understand comming out with new packaging to expand your lines and profits, but the current priceing structure does not make sence. Charge more for your smaller items. I just dont understand the priceing. Even if their double size cans were 20 cents more expensive...fine whatever...but I just dont understand it right now.