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> It’s either the caramel coloring or the water… Or the lack of competition. There could be a lot of other factors involved. Governments and unions can add a
by VancouverMan 2y ago
> It’s either the caramel coloring or the water… Or the lack of competition.
There could be a lot of other factors involved.
Governments and unions can add a tremendous amount of artificial cost/overhead to goods and services, too.
A minimum wage increase or new collective bargaining agreements, for example, can increase costs throughout a supply chain, from manufacturing, to transportation, to retail.
A new or increased vehicle fuel tax, or a more general "carbon" tax, are examples of government policies that can also repeatedly distort pricing throughout a supply chain.
Also, keep in mind that the pricing of the lower-tier grocery products might not reflect the actual cost to the retailer. Such products are often sold as loss leaders. The actual cost may be much closer to the cost of the higher-tier products, but this isn't apparent to the customer thanks to the retailer subsidizing the product.
Cheaper grocery products can sometimes use inferior ingredients or lower-cost alternative ingredients, too. Comparisons with more expensive products may not be realistic because they're fundamentally different products, even if they may seem similar to the consumer.
- gamepsys 2y ago> Cheaper grocery products can sometimes use inferior ingredients or lower-cost alternative ingredients, too. Comparisons with more expensive products may not be realistic because they're fundamentally different products, even if they may seem similar to the consumer. The total cost of materials for a can of soda is negligible.