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You've stopped off at a service station to get yourself a cool, refreshing drink,
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but you can't help but notice that, while a 12-ounce bottle of soda costs a mere $1.49, the same-sized bottle of water costs about 50 cents more.
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You would think that soda should cost more because, in addition to water, it contains sugar, flavorings, and a number of mysterious chemicals, whereas water just contains... water!
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So, what's really going on here?
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If we look at production cost, the actual liquid really only accounts for a few cents of the price of each.
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Bottling and transportation cost a bit more, but the primary expense for both products is marketing.
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Beverage companies spend millions putting their drinks on signs, TVs, and in the hands of celebrities, all in an attempt to convince us to pay for either a product with serious health consequences or for one that comes out of your tap virtually for free.
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But the average person doesn't know or care about any of this.
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They're just looking for something to drink.
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And companies simply charge whatever we're willing to pay for it.
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10 dollars for a bottle of water? Yeah, right!
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But 1.99?
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Eh, what the heck. It's good for you, right?
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Soda, on the other hand, suffers a far less favorable public opinion.
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We've caught on to the fact that it's an unhealthy, cheap beverage selection, and as a result, companies can't get away with charging us as much as they do for water.
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But lower that price to 1.49, and we'll take it.
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Essentially, it boils down to two very inexpensive products being sold at the highest price we are willing to pay for it.
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The real question is, when are we going to start buying bottled air?
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With the right logo, brand name, and marketing campaign, the sky's the limit!
