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You find it hard to believe that a company would cut cost by reducing the amount of product they use? Tea, even if it is cheap, is still much more expensive th
by mywittyname 5y ago
You find it hard to believe that a company would cut cost by reducing the amount of product they use?
Tea, even if it is cheap, is still much more expensive than corn syrup and water. So if you want to cut costs, it makes sense to reduce the amount of tea and make up for it with more sugar.
If you do it a little bit over 30 year years, few people with notice. You get a panel of taste testers compare the current version with a slightly watered down version and see if they can tell the difference. If most can't, you make the change and pocket the savings as profit. It's like making a copy of a copy on a copy machine, you can't tell much difference between the two, but repeating the process over multiple generations and the small differences adds up to be dramatic between the original and the 30th generation version.
This exact situation happens for many food companies. They gradually reduce quality and costs over the years. And once the people who remembered the original product die off or forget, it can be hard to re-establish yourself as anything but a cheap brand.
Five cents is a big cut of a $0.50 product.
- hn_throwaway_99 5y ago> You find it hard to believe that a company would cut cost by reducing the amount of product they use? No, my point is that if you want to cut costs, why would you focus on the cheapest (perhaps not in the overall sense, but in the total value of the product) ingredient that actually gives you the most "bang for the buck". I would imagine that slight packaging changes could provide much more savings without changing the taste of what actually goes in your mouth.
- wyre 5y agoAt 99 cents i would imagine packaging and distribution is as efficient as it can be. Making the recipe cheaper would be the only way to cut costs.
- JamesSwift 5y agoBecause its the easiest knob to turn by far to adjust costs? What is harder, to tell the machines to mix 5% more water in, or to modify packaging in ways that affect all upstream and downstream processes?
- krsrhe 5y ago