Why are energy drinks so expensive.

Because people won’t pay more for cola. It’s an old beverage, with a (fairly) stable price set. They have to raise the price slowly (and they do. I remember when a can of coke was still 50 cents, and my mother remembers when a little bottle was a nickle). If they jumped it to $2.50 a can overnight, people would by Pepsi or (gasp!) RC instead. Brand loyalty will only take you so far. If you push them too fast, you’ll lose sales.

But energy drinks - ah! Those are New! and Exciting! and marketed at high school and college kids with nothing but play money. And once you try one, you’re hooked through the mouth like a wide-mouthed bass and keep shelling out $2.50 a can for that delicious caffeine elixir. Actually, when you’re broke, a can of Monster will fill you up for half the day, and is cheaper than a real meal.

Sure, they probably cost a little more to make, but we’re talking less than 10 cents per can more, not double.

Trust me, if Coca-cola was invented last year, they’d be charging more for it.

[Lewis Black] How many Coke drinkers have seen a Pepsi ad and thought, “Maybe I’m wrong. I’ve been getting my sugar the wrong way.”? [/LB]

Has the inflation-adjusted price of Coke steadily risen? I’m not saying that it hasn’t, just asking. Note the the US Consumer Price Index has more than doubled since 1980.

OW! My Balls!

Isn’t it a bit about “economy of scale” too? (please correct me if I’ve mis-used some rusty Econ 101 terms)

You’re more likely to buy Coke by the case or 2-liter. More likely to drink a couple cans a day, or buy a lot of it at once for a party. It doesn’t seem like Red Bull is something you would drink in the same manner/amount as a can of cola.

Coke can get your money and make profit by selling you their product 12 cans at a time, because you’re more likely to buy it 12 cans at a time. You’ll notice that when you buy ONE can of Coke at a time (say, from a vending machine), the cost is about 65 cents per 12-oz can. You can usually find a 12-pack for around $3 which is 25 cents per 12-oz can. Coke can probably sell more at 25 cents per can than 65 cents per can, so the lower price of the 12-pack is what they’re able to charge (note that this is actually what the store charges, and the store pays Coke, obviously).

When it comes to energy drinks, you’re most likely to buy one at a time, or at most, a 4-pack (which, in most cases, costs the same as 1 can times 4). So if everyone is only buying one at a time, and that’s the best way to sell it, then they have to fit their prices to match. It may even be considered strictly an impulse buy and that’s how they’ve all decided to price it.

All that, and the fact that people will pay $2.50 for a can, is what I think makes them so expensive.

It’s definitely a fad drink that all the kids love, bless 'em. It’s more edgy and hip because if you’re over 50 (i believe) it tastes like cheap perfume. And it actually gives you a noticeable lift (or buzz) whilst coke tastes good but it’s more of a sugar rush, plus everyone drinks coke (even my dad, bless 'im) so it’s not cool. And there’s the use as a mixer for vodka which the newly qualified drinkers have cottoned onto, which is very actively marketed in many drinking establishments. The stuff from the supermarkets tastes almost the same but you wouldn’t have wanted your mates to know you drank Kwiksave cola when you were a nipper, eh?

The same economic force that allows Dasani to sell millions of dollars of bottled water for 100’s of times what a product of comparable value would sell for if you drank it from the tap. It’s because suckers are being born at a rate of vastly more than once a minute.

I’d say that there’s also been some social conditioning going on. By now, people are used to paying $2.00-$3.00 for a cup of coffee at Starbucks, $7.00 for a beer at the ballpark, and a couple of bucks for an up-label bottled iced tea or fruit drink.