Minor Axis
Well-Known Member
I went to the local Ace hardware store today (did not feel like driving an extra 10 miles to Home Depot) looking for some paintable caulk. A 10 oz tube of caulk sells for $2.29. A 5 oz tube of the exact same stuff sells for $2.49. I told the clerk I only needed the smaller amount, but I refused to pay more for it and I thought this pricing encouraged waste. Why would anyone buy the smaller container? He said they sold lots more of the larger tubes so it was probably cheaper to make.
My question is why? You've got some machinery set up and some raw materials. If the 10oz machine runs, it costs $XX per hour to operate. I assume the 5oz machine would have a similar cost per hour to operate. So why would the smaller amount cost more? Why not price the smaller tube at something like $1.50? I would think the $2.49 price on the smaller container would discourage the sales of the lesser amount, no? What am I missing?
My question is why? You've got some machinery set up and some raw materials. If the 10oz machine runs, it costs $XX per hour to operate. I assume the 5oz machine would have a similar cost per hour to operate. So why would the smaller amount cost more? Why not price the smaller tube at something like $1.50? I would think the $2.49 price on the smaller container would discourage the sales of the lesser amount, no? What am I missing?