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Printer-Friendly ModeCarbonation inflation: Pepsi prices increase to $1.25
August 25, 2005 —
It's rare that anyone really speaks the same language. Regional dialects result in different words and phrases for the exact same thing. One study focuses entirely on soft drinks. By a landslide, the North prefers "pop," the East Coast drinks "soda," and much to the chagrin of Pepsi, those down south enjoy a nice "coke."
Students looking to purchase a 20-ounce beverage before class will quickly notice a difference this semester: the Pepsi products have risen to $1.25 a bottle.
The reason for the more pricey Pepsi is simple: Pepsi is charging SVSU more for its products, so SVSU in turn must ask for more from the customers. According to Connie J. Schweitzer, director of Purchasing at SVSU, the price increase is comparable to the amount that Pepsi increased the cost of their product. While not exact, $1.25 was just an easier number to work with in a vending machine than $1.15.
Schweitzer calls the decision "fair to Pepsi," but is it fair to the students as well? The fact that the bottles of soda, juice, and water cost more is really not what causes irritation among the students. What is inconvenient and frustrating is the need to always have that extra quarter.
Without that quarter, students will have to insert two dollars into the machine just for one Pepsi. They'll get change back, of course, but it will still feel like a lot more money than the simple one dollar that the machines once required.
So just how did this spare change nightmare begin? Years ago, Pepsi won the bid over Coca-Cola to become the only brand offered at SVSU. Pepsi was victorious because of the commission they were willing to offer SVSU from their sales and because Pepsi agreed to sponsor activities at SVSU and offer other incentives if the product sold well.
The decision to sell Pepsi was a successful one. Last fiscal year, 6,400 cases of Pepsi products were sold at SVSU. That's 154,000 bottles of Pepsi, or 3,080,000 ounces of soda, juice, and water.
But since Pepsi is the only brand available at SVSU, Schweitzer says it is important and necessary that they remain happy with their relationship with the University, even if that means increasing prices to keep that happiness.
Schweitzer says that she foresees no effect on sales after the increase, because the vending machines are still more economical than other outlets. She says the increase only "brings the vending machine price more in line with what other areas are charging."
Those other areas include the C-Store and local 7-11 stores. Currently, the C-Store charges $1.19 for 20-ounce Pepsi products, while 7-11 charges $1.29. These two prices do not reflect the ten-cent deposit that stores must add on. So in the end, the machines win - by four cents.