Example: one bottle of water is like $2 but a whole pack of 24 is like $8. Isn’t the company losing money by charging less for more resources/labor & packaging?
In: 8
There are efficiencies in selling bulk… it takes the same effort to convince a consumer (marketing expense) to choose one bottle or 24-pack; it’s more efficient to place a pallet of 24-packs on the floor of a store vs. constantly stocking individual bottles in a fridge. Some of the pricing differences are supply and demand, convenience, competition — if you’re thirsty or grabbing lunch and need a drink, you’ll think little of spending $2 on a cold bottle of water. When it’s a case of warm bottles for future use, you are more price sensitive.
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