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The economics of bulk buying - Sally's Journal
March 19th, 2006
01:31 am


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The economics of bulk buying

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[User Picture]
Date:April 11th, 2006 08:25 am (UTC)
Maybe everyone who buys bulk orange juice wants 6-packs but most of their machines can only wrap 4 cartons; hence 4-packs are much cheaper than 6-packs.

I often buy 2 singles, but a bargain like that might make me buy a 4-pack. Because I am more frugal when I don't have much left, I'll probably drink the first two packs more quickly than the last two or the only two, so they have sold more than they would if I buy two now and two next week.

Maybe they make more profit on a cheap 4-pack than 2 expensive singles but the people who buy
6-packs wouldn't want 4 or 8 cartoons, so it doesn't affect sales of 6-packs.

Of course, if the extra orange juice that I drink is instead of tap water they win, but if it is instead of (more expensive) cranberry juice they might have lost...

And because of my Club Card (though I use Sainsbury's and my Nectar card much more) they have the data to go figure all this out.

[I don't drink much orange juice - it can bring me out in a rash; I've actually described my apple juice habits.]
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