# Why are energy drinks so !@#$%^& expensive?

**URL:** <https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849>\
**Category:** Cafe Society\
**Created:** [July 1, 2016, 3:22am UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849 "2016-07-01T03:22:10Z")\
**Posts on this page:** 20\
**Page:** 3

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**Author:** ![bump](https://avatars.discourse-cdn.com/v4/letter/b/7c8e57/32.png) [@bump](https://boards.straightdope.com/u/bump)\
**Post date:** [July 1, 2016, 2:46pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/41 "2016-07-01T14:46:56Z")

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> [@leahcim](#):
>
> This speaks to a misconception – the price of a thing is not determined by the cost of making that thing. The price of a thing is determined by supply and demand, and if that price is 1000 times what it costs to make, then someone is going to make a tidy profit.
> 
> For commodity-like products, eventually more manufacturers will enter the market and undercut the high-margin manufacturers, but that is not possible for branded energy drinks. No one else can make “Monster”.

This is the correct answer.

Commodity prices reach an equlibrium because everyone’s commodity items are fungible. One person’s bushel of field corn is indistinguishable from everyone else’s. So what happens is that one guy may undercut everyone, and sells all his corn, but next time, he realizes “Hey…everyone’s still buying at the equilbrium price, so next time I’ll sell for more.” Same thing in reverse- someone prices their corn too high, and he’ll end up lowering it to the equilibrium price to sell it. As supply or demand changes, that equilibrium price will fluctuate in response. In a sense, the equilibrium commodity price is basically a sort of crowdsourced average price- it’s based on the inputs of all the buyers and sellers of that good- which is only possible because their goods are identical.

In the case of an energy drink, it’s differentiated from every other energy drink, and from other beverages as well, so the manufacturer can set their price point wherever they like. Of course, there’s a sort of equilbrium pricing that goes on there as well, but there’s more room for variation based on brand. For example, the manufacturers know that they generally sell for $1.50-$2.00 per 16 oz can. So they may put some douchey graphics or super-macho branding on there and sell it as “Tactical Energy Drink” or some such, and charge a bit more than the going rate. But they can’t really charge much more without having some reason to be able to do so.

So a bushel of corn sells for a set amount, but energy drink prices can vary within a certain band of prices set by what people are willing to pay.

This is pretty much true for ALL retailed goods, FYI.

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**Author:** ![Mister\_Rik](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mister_rik/32/491_2.png) [@Mister\_Rik](https://boards.straightdope.com/u/Mister_Rik)\
**Post date:** [July 1, 2016, 2:48pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/42 "2016-07-01T14:48:17Z")

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> [@running\_coach](#):
>
> Some of us don’t like coffee.

I like coffee, but prefer tea. But in my case, I don’t work a desk job where I can keep a cup of coffee at hand. Years and years ago, I got tired of getting back to my coffee cup at work and finding it had gone stone cold. There are few things that make me go “BLEH!” faster than getting a mouthful of cold coffee when I was expecting it to be hot.

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**Author:** ![MacTech](https://avatars.discourse-cdn.com/v4/letter/m/c0e974/32.png) [@MacTech](https://boards.straightdope.com/u/MacTech)\
**Post date:** [July 1, 2016, 2:49pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/43 "2016-07-01T14:49:30Z")

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> [@Bear\_Nenno](#):
>
> Sounds like Monster’s Rehab series. Lemonade, Pink Lemonade, Pomegranate, Peach, and some other flavor I cant think of. They’re great. Low calorie, lots of vitamins, taurine, gensing, a little caffeine… Its the thirst mutilator!

But do they have Electrolytes? Like plants crave?

> [@Boozahol\_Squid\_P.I](#):
>
> Isn’t the thirst mutilator… you know… water?

Water, you mean, like, from the toilet?

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**Author:** ![kayaker](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kayaker/32/441_2.png) [@kayaker](https://boards.straightdope.com/u/kayaker)\
**Post date:** [July 1, 2016, 2:52pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/44 "2016-07-01T14:52:33Z")

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> [@Mister\_Rik](#):
>
> There are few things that make me go “BLEH!” faster than getting a mouthful of cold coffee when I was expecting it to be hot.

At work I often pick up my coffee mug, find it ice cold, and drink it down. No problem.

What I hate is doing this on a Monday morning, then realizing nobody has made a pot yet. The cold coffee is from Friday. BLEH!

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**Author:** ![Me\_Billy](https://avatars.discourse-cdn.com/v4/letter/m/e480ec/32.png) [@Me\_Billy](https://boards.straightdope.com/u/Me_Billy)\
**Post date:** [July 1, 2016, 3:24pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/45 "2016-07-01T15:24:45Z")

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Actually WHY do young people drink energy drinks?

They don’t need it! Old people should be drinking these???

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**Author:** ![GunnarFranz](https://avatars.discourse-cdn.com/v4/letter/g/da6949/32.png) [@GunnarFranz](https://boards.straightdope.com/u/GunnarFranz)\
**Post date:** [July 1, 2016, 3:43pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/46 "2016-07-01T15:43:17Z")

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> [@Me\_Billy](#):
>
> Actually WHY do young people drink energy drinks?
> 
> They don’t need it! Old people should be drinking these???

As referenced, some people enjoy the taste.\* I am not particular at all about food (I just hate olives.) I mostly just drink water and eat plain chicken and broccoli. However, as a rule for drinks, alchoholic and non, the more sour the better. I recommend Rockstar’s supersours, the only competition with regular green monster in terms of taste, imho. That being said I have maybe one a week? 8 a day is either an exaggeration or a cry for help, says right on the can (for Monster) to never drink more than two a day.

\*Also it’s like Adderall for those of us who don’t actually have Adhd and just want to get stuff done.

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**Author:** ![Hampshire](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hampshire/32/4887_2.png) [@Hampshire](https://boards.straightdope.com/u/Hampshire)\
**Post date:** [July 1, 2016, 4:02pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/47 "2016-07-01T16:02:52Z")

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> [@Bear\_Nenno](#):
>
> Today, for instance, I’ve had 7 Monsters. Im about to have another. That’s all that’s in my fridge. Though, sometimes I will drinl a Coke Zero. But usually all I drink all day ate Monsters and sometimes coffee.  
> Coffee can get pretty expensive too, actually.

I don’t think you’re getting enough. You should try to have at least 2 before you wake up in the morning and another one after you fall asleep at night.

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**Author:** ![thelurkinghorror](https://avatars.discourse-cdn.com/v4/letter/t/7c8e57/32.png) [@thelurkinghorror](https://boards.straightdope.com/u/thelurkinghorror)\
**Post date:** [July 1, 2016, 4:03pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/48 "2016-07-01T16:03:53Z")

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> [@kayaker](#):
>
> Why not go all out and drink Four Loko?

It’s been defanged due to public/legal backlash.

> [@Colophon](#):
>
> Low-calorie energy drinks? Now I really have heard it all. :smack:

You’ve heard of Diet Coke, yes? Now up the caffeine.

> [@Me\_Billy](#):
>
> Actually WHY do young people drink energy drinks?
> 
> They don’t need it! Old people should be drinking these???

I don’t have some people’s habits :eek:, but if really tired I’ll have two in a day. Coffee gives me instant diarrhea, whereas sodas and energy drinks don’t.

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**Author:** ![jasnooks](https://avatars.discourse-cdn.com/v4/letter/j/f4b2a3/32.png) [@jasnooks](https://boards.straightdope.com/u/jasnooks)\
**Post date:** [July 1, 2016, 4:10pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/49 "2016-07-01T16:10:21Z")

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Gensing lol

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**Author:** ![D\_Odds](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/d_odds/32/2882_2.png) [@D\_Odds](https://boards.straightdope.com/u/D_Odds)\
**Post date:** [July 1, 2016, 4:18pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/50 "2016-07-01T16:18:58Z")

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> [@octopus](#):
>
> People are willing to pay.

Nailed it in the second post. They will charge what the market will bear, and the major companies will likely collude to keep prices and margins high. Price wars only benefit consumers. Personally, I wouldn’t drink any of them even if it was given to me for free, but that’s me. To each, his/her own.

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**Author:** ![Snarky\_Kong](https://avatars.discourse-cdn.com/v4/letter/s/a183cd/32.png) [@Snarky\_Kong](https://boards.straightdope.com/u/Snarky_Kong)\
**Post date:** [July 1, 2016, 4:35pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/51 "2016-07-01T16:35:56Z")

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> [@kayaker](#):
>
> Why not go all out and drink Four Loko?

Being drunk at work is generally frowned upon.

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**Author:** ![D\_Odds](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/d_odds/32/2882_2.png) [@D\_Odds](https://boards.straightdope.com/u/D_Odds)\
**Post date:** [July 1, 2016, 5:00pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/52 "2016-07-01T17:00:38Z")

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> [@Snarky\_Kong](#):
>
> Being drunk at work is generally frowned upon.

You need a better job.

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**Author:** ![kayaker](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kayaker/32/441_2.png) [@kayaker](https://boards.straightdope.com/u/kayaker)\
**Post date:** [July 1, 2016, 5:03pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/53 "2016-07-01T17:03:53Z")

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> [@Snarky\_Kong](#):
>
> Being drunk at work is generally frowned upon.

A friend of mine manages a bar. The owner expects him to hang out and “have fun” once every week or two. Because this involves him giving out free drinks, he’ll tell me a day or two ahead of time when he plans to do this, and I’ll hang out and help him.

It’s a tough job, but somebody has to do it.

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**Author:** ![GunnarFranz](https://avatars.discourse-cdn.com/v4/letter/g/da6949/32.png) [@GunnarFranz](https://boards.straightdope.com/u/GunnarFranz)\
**Post date:** [July 1, 2016, 5:05pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/54 "2016-07-01T17:05:30Z")

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> [@Hampshire](#):
>
> I don’t think you’re getting enough. You should try to have at least 2 before you wake up in the morning and another one after you fall asleep at night.

Assuming he isn’t being quaint -  
8 monsters a day  
56 a week  
240 a month  
2920 a year

That is $5840 + tax + deposit… $6000 a year on monster.

I mean it’s good but…

Anyway, I don’t see energy drinks as expensive because they aren’t meant to be had constantly, 2 a day max, that is slightly cheaper than one trip to starbucks for the basics before work each day.

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**Author:** ![Gatopescado](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/gatopescado/32/5711_2.png) [@Gatopescado](https://boards.straightdope.com/u/Gatopescado)\
**Post date:** [July 1, 2016, 5:13pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/55 "2016-07-01T17:13:55Z")

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> [@D\_Odds](#):
>
> Personally, I wouldn’t drink any of them even if it was given to me for free, but that’s me. To each, his/her own.

I laugh when I see all these athletes bringing cans of this shit to their lips out of some obligation to their sponsors. It’s pretty obvious that many of them aren’t really drinking this crap.

But hey, _someone’s_ paying for all those stickers on the car.

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**Author:** ![bump](https://avatars.discourse-cdn.com/v4/letter/b/7c8e57/32.png) [@bump](https://boards.straightdope.com/u/bump)\
**Post date:** [July 1, 2016, 6:42pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/56 "2016-07-01T18:42:57Z")

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> [@D\_Odds](#):
>
> Nailed it in the second post. They will charge what the market will bear, and the major companies will likely collude to keep prices and margins high. Price wars only benefit consumers. Personally, I wouldn’t drink any of them even if it was given to me for free, but that’s me. To each, his/her own.

I doubt they actively collude, but they almost certainly price their products relative to their competitors.

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**Author:** ![D\_Odds](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/d_odds/32/2882_2.png) [@D\_Odds](https://boards.straightdope.com/u/D_Odds)\
**Post date:** [July 1, 2016, 7:36pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/57 "2016-07-01T19:36:22Z")

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> [@bump](#):
>
> I doubt they actively collude, but they almost certainly price their products relative to their competitors.

Likely. I didn’t want to get into the whole active/inactive collusion thing. It’s more of a _wink, wink, nudge, nudge we won’t start a price war if you don’t start a price war_ sort of thing.

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**Author:** ![Seanette](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/seanette/32/9139_2.png) [@Seanette](https://boards.straightdope.com/u/Seanette)\
**Post date:** [July 1, 2016, 7:38pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/58 "2016-07-01T19:38:46Z")

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> [@Colophon](#):
>
> Low-calorie energy drinks? Now I really have heard it all. :smack:

You’ve never heard of sugar-free energy drinks? Just about every brand I see has that somewhere in their lineup. My husband’s diabetic, so we’re very alert to low-/no-sugar options.

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**Author:** ![Bear\_Nenno](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bear_nenno/32/3358_2.png) [@Bear\_Nenno](https://boards.straightdope.com/u/Bear_Nenno)\
**Post date:** [July 1, 2016, 7:55pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/59 "2016-07-01T19:55:03Z")

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> [@GunnarFranz](#):
>
> Assuming he isn’t being quaint -  
> 8 monsters a day  
> 56 a week  
> 240 a month  
> 2920 a year
> 
> That is $5840 + tax + deposit… $6000 a year on monster.
> 
> I mean it’s good but…
> 
> Anyway, I don’t see energy drinks as expensive because they aren’t meant to be had constantly, 2 a day max, that is slightly cheaper than one trip to starbucks for the basics before work each day.

It’s closer to $4000-$5000 a year, but yea. It’s not cheap. If I ever feel like I need to start watching my spending, it’s the first thing to go. Well… chewing tobacco ($20-$30 a week; $1300 a year) would be the first thing, then cigars ($300 quarterly; $1200 a year) would be next. Then Monsters. Okay, so I have a few vices. I can quit anytime.  
Could be worse. It could be alcohol and meth.

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**Author:** ![thelurkinghorror](https://avatars.discourse-cdn.com/v4/letter/t/7c8e57/32.png) [@thelurkinghorror](https://boards.straightdope.com/u/thelurkinghorror)\
**Post date:** [July 1, 2016, 8:43pm UTC](https://boards.straightdope.com/t/why-are-energy-drinks-so-expensive/758849/60 "2016-07-01T20:43:24Z")

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> [@bump](#):
>
> I doubt they actively collude, but they almost certainly price their products relative to their competitors.

Rockstar is typically cheaper that the other major brands, while Red Bull is more expensive. Off brands may be even cheaper.

From memory, it ranges from $0.09 to $0.33 per ounce.

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