You'vestoppedoffat a servicestationtogetyourself a cool, refreshingdrink,
butyoucan't helpbutnoticethat, while a 12-ouncebottleofsodacosts a mere $1.49, thesame-sizedbottleofwatercostsabout 50 centsmore.
Youwouldthinkthatsodashouldcostmorebecause, inadditiontowater, itcontainssugar, flavorings, and a numberofmysteriouschemicals, whereaswaterjustcontains... water!
So, what's reallygoingonhere?
Ifwelookatproductioncost, theactualliquidreallyonlyaccountsfor a fewcentsofthepriceofeach.
Bottlingandtransportationcost a bitmore, buttheprimaryexpenseforbothproductsismarketing.
Beveragecompaniesspendmillionsputtingtheirdrinksonsigns, TVs, andinthehandsofcelebrities, allinanattempttoconvinceustopayforeither a productwithserioushealthconsequencesorforonethatcomesoutofyourtapvirtuallyforfree.