Economics 101

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Minor Axis

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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?
 
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Kyle B

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It could be that the 10oz is the standard, and it takes more work to readjust and make the 5oz. I honestly have no idea lol.

I have an Ace hardware store in my town too. Everything seems old and outdated there.
 

Alien Allen

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It does seem odd to be more expensive. Normally you would expect it to be near the cost of the larger item. But still less. Part of it is due to extra packaging. Might be some other factors too.
 

Accountable

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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?
The machine has to be set up, which costs money. Likely the same time to set up the machines no matter which size. Higher demand on the larger size means a longer run on a single setup. The more items on a single run cuts production cost. The end result is that it probably costs the same or maybe even less to make the larger size, simply because of demand.
 

hart

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Minor.....me thinks u over think the little things, put that mind to capping the oil gusher or somerthing......buy the damn bigger one and throw away what u don't use....it's the American way!
 

RedRyder

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Forget the caulk..... I had to ponder buying a 9.2 oz bag of Reese's Peanut Butter Cups Miniatures at $2.99 or the 19.75 oz bag of the same product at $5.99. Obviously.... the larger bag... this time.... was the better deal. Not because of the mere pennies saved..... but because I could gorge myself with the larger bag and not be left wanting with the smaller bag. :D

Yes.... Choices are a fact of life.

You should see all the damn candy wrappers lying in the trash right now. Ugggghhhhhhh....... I love the Reese's..... but they so don't go well with the Capt. & Coke. *sigh*
 

RedRyder

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I know, right? I try to eat sensibly. I try to only have junk food on occasion..... but when I can get the bigger package that just jumps off the rack and entices me so.... I weaken my resolve and cave. Damn those marketeers.
 

hart

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And then there's my hubby. When I was single it was easy I bought what I was gonna eat and the rest was food wouldn't hurt me.....and sh*t then calories would fall off if I moved my pinky. Now, I eat less and there's damn superglue on the calories....NOT FAIR!!!!
 

Minor Axis

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Better yet cap the caulk and save it for another day down the road

Actually I had some capped caulk in the basement, but it had dried up enough it was no good.

Minor.....me thinks u over think the little things, put that mind to capping the oil gusher or somerthing......buy the damn bigger one and throw away what u don't use....it's the American way!

Lol. I did buy the bigger one. Maybe I'll get it used before it dries up. ;)

Forget the caulk..... I had to ponder buying a 9.2 oz bag of Reese's Peanut Butter Cups Miniatures at $2.99 or the 19.75 oz bag of the same product at $5.99. Obviously.... the larger bag... this time.... was the better deal. Not because of the mere pennies saved..... but because I could gorge myself with the larger bag and not be left wanting with the smaller bag. :D

Yes.... Choices are a fact of life.

You should see all the damn candy wrappers lying in the trash right now. Ugggghhhhhhh....... I love the Reese's..... but they so don't go well with the Capt. & Coke. *sigh*

You gals! Lol. :D
 
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