July 11, 2020

Now vs Later

Have you ever been in the supermarket and noticed that a 12oz can of Coke costs about the same as a 2 liter bottle?

(I did the math... the larger bottle contains about five times as much soda for the same price!)

Does this seem irrational to you?

It’s not.

In fact, understanding why it’s perfectly reasonable is critical to increasing your profitability.

Sure, the soda itself is the same in both bottles, but the packaging isn’t.

The little bottle is designed for people in a rush who want to consume the beverage right now.

The big bottle is designed for people who are not in a rush and plan to consume the beverage later.

(By the way, this is why the small bottles are kept cold and the big ones aren’t.)

Here’s the thing...

These two different “packages” of Coke, are for two totally different buyers.

Since the Coca-Cola Company prices their products based on value not cost, and since value is subjective (i.e., a perception in the mind of the buyer), it’s perfectly reasonable for these two different packages of Coke to be priced differently.

What does this have to do with you?

Your expertise is the soda.

Yours,

—J