Really, the simple answer is, because people will pay that much.
Basic pricing strategy is, you can compete on quality, or on price. If you choose quality, fewer people can afford your product, but there's more profit per can. Price, you charge less and hope that enough people buy the product to make up for the smaller profit margin. Coca-Cola chose quality, Shasta Cola chose price.
Comments
Here at my local supermarket, all coca-cola products are $2.24 a 12 Pack. Buy 2 packs at $5.60 get 3 packs free...Thats at Vons.
But its a good question why in so many places its so expensive. You'd think they made it with gold.
Really, the simple answer is, because people will pay that much.
Basic pricing strategy is, you can compete on quality, or on price. If you choose quality, fewer people can afford your product, but there's more profit per can. Price, you charge less and hope that enough people buy the product to make up for the smaller profit margin. Coca-Cola chose quality, Shasta Cola chose price.
A pretty basic explanation of different pricing strategies is available at http://www.marketingteacher.com/Lessons/lesson_pri...
Anyone who is bored enough by this to convert to Pepsi, congratulations!
Advertising
Because the company is run by greedy corporate sloths.
I usually get the store brands.
Because Coke Sucks.
Because people are willing to pay the price.
cause it tastes better than that other junk that goes flat in 30 minutes after it's opened.
advertising, quality ingredients, and brand name
marketing