Two-liter soda is a �loss-leader� - August 9, 2003

Mail Tribune (Medford, OR — Wayback)

2003-08-30

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CLEAR Temp: 90 °F Wind: NW at 10 mph Friday, August 29, 2003   SECTIONS Home Page Local News Sports Business Obituaries   Life   Opinion - Politics   AP News   Weather   Classified   Archives   Site Map   EXTRA HomeLife Magazine Joy Magazine Tempo A & E RogueValleyAutoFinder   RogueValleyHomeFinder   Real Estate Showcase   Wellness Connection   Newspaper in Education   Prime Times   Outdoor Journal   Personals   Movie Times   TV Times   E The People   CLASSIFIEDS Find a Car Find a Home Find a Job Find Everything  E SOUTHERN OREGON Automotive Communities   Entertainment   Publications   Recreation   Calendar   ABOUT US FAQ What's New Advertise Home Delivery Classified Ad Employment Contact Us Media Kit Email Story to a Friend August 9, 2003 Two-liter soda is a ‘loss-leader’ I notice that 1-liter plastic bottles of soda are priced much higher than 2-liter bottles. Now, why is it that 2 liters are sold at $1.04 and 1-liter bottles are sold at $1.56, or something in that range? — Jesse C., Eagle Point It appears you’ve found a bargain, Jesse. But the way grocery stores sell soda and other "loss-leader" items skewers the concept that higher content should require a greater price. A local grocer tells us that small amounts of soda are considered convenience items and bottling companies promote the smaller bottles because they are more profitable for the grocer. Advertisement While smaller bottles are almost never used in promotional sales, larger containers are used in advertising and serve as loss-leaders (items sold at or below cost to get people in the door) at discounters such as Bi-Mart or Wal-Mart. The resulting competition keeps prices down virtually everywhere. Our insider says that 2-liter bottles should sell for around $1.89. Send questions to "Since You Asked," Mail Tribune Newsroom, P.O. Box 1108, Medford, OR 97501; by fax to 541-776-4376; or by e-mail to [email protected] . We’re sorry, but the volume of questions received prevents us from answering all of them. Printer Friendly Version   Email Story to a Friend Subscribe Archive: Click to Search Mail Tribune Home Local News  | Sports  | Business  | Obituaries  | Life Opinion - Politics | AP News | Archives  |  Site Map   E Southern Oregon  | Classified   Copyright © 1997-2003 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback A D V E R T I S E R S SPECIAL SECTIONS Rogue Valley Auto Finder Rogue Valley Job Finder --> Rogue Valley Home Finder Joy Magazine Homelife Magazine Tempo Real Estate Showcase Food for Thought Hike of the Week Wellness Connection Outdoor Journal Moving to Southern Oregon? Volunteer Openings Prime Times