I’ve noticed that there are no cheap energy drinks available on the market. They all tend to be $1.99+ for a small 12oz can. About the only discount available is packaging them in quantity.
Why is this? It seems that someone would catch onto the trend and make a cheap version.
If they’re making money at the higher price, perhaps they’ve calculated that a lower price won’t bring in enough of an increased market to increase the total profit.
Perhaps the extra ingredients used really are expensive enough to preclude a lower pricing.
Shelf space is literally expensive as companies compete to grab as much of it as possible. Energy drinks are such small sellers overall that new companies can’t pay high enough stocking fees for a cheap version to justify supermarkets in carrying them.
Advertising costs are high as well, and a cheap energy drink might not be able to afford to market itself enough to compete in what is now a premium market.
Cheap energy drinks have already been tried and failed, so you don’t see them any more.
Interesting theory. There was a veterinary study looking at the placebo effect that showed just that. Clients who believed their placebo was an expensive product ranked effect higher than clients that were led to believe that their product was cheap.