Why Do People Struggle So Much With Snack Prices?

[jloucks]

I've seen this before, and I don't care. For me Dasani tastes better than any other water out there. I don't care if it's from a tap or from a spring, as long as it tastes like fresh water.

 

[jloucks]

How the heck did this turn from a rational discussion about high price points and the choice to pay them or not, to mud slinging, snide remarks, and insults? Now I'm starting to remember why I quit coming to this site all those years ago.

Opinions, lot's of them.

 

[Animaniac93-98]

Let the record show that someone on this board started a thread to argue about and "educate" the rest of us on Disney snack prices.

Not about the quality of Disney snacks. Nor their availability or selection. Or even whether they qualify for the dining plan. But the prices of snacks.

Just let that sink in for a moment.

 

[Chef Mickey]

Defenders of Disney often cite the pixiedust fantasy that Disney raises prices on item A to keep prices lower on item B. In point of fact, the outrageous markups that Disney slaps on in-park food and beverages don't "offset the value" of anything. Disney maximizes the price on everything they sell in the parks, from tickets to t-shirts. Management is constantly searching for ways to generate larger cash streams from the same products -- all the while slashing operating costs to the bone (now more than ever, with Chappie) on every line item that their brigade of beancounters can find.




That's another commonly heard defense of Disney. The reality is that cherry-picking scummy companies to show "Disney isn't as bad as them" is not only a poor defense of Disney, it's a guaranteed backfire -- it highlights how far Disney has fallen in its attitude toward its customers, and how much it has become like other arrogant, rapacious Wall Street corporations.

Sounds like DIsney's value doesn't do it for you. That's fine and you don't have to go.

Are the companies I mentioned "scummy" or just like most companies? Any drug company makes huge margins on their drugs and every TV/phone provider is killing you. The reason they can is because people will pay and that's the market for those products/services.

I've worked at different Fortune 100 companies and they are all the same, even ones you wouldn't believe. My point is, you'll be pretty much left with nothing if you boycott companies trying to maximize profit.

 

[Chef Mickey]

You are banging your head against a 9 foot thick, steel reinforced, kevlar coated cement wall. The other side is basically saying it's GOOD for Disney to price gouge captive customers. How can you possibly argue with that mindset?

It's not good; it's reality and common in every business.

 

[Chef Mickey]

Not when your customer blindly follows which is your entire argument of 'well place XYZ charges that, so its fine here". That model is unsustainable because businesses will just leapfroging prices with each other. Its this stupid train of thought that allows people to think paying $8 for a coke isn't THAT bad because it's $6 at the other stadium". This psychology is flawed and yet customers fall for it day after day.. this thread demonstrated it on page one.



I'm talking about the corporate ethos and their position for corporate responsibility. The mindset of 'profits above all else' and 'maximum shareholder return' are only examples of corporate strategy - it is not the ONLY one.

Hanging the entire discussion on the price of a bottle of water is shortsighted and argumentative. It example - not the scope of the issue.

The number 1 responsibility of ANY publicly traded company is to maximize shareholder value. Period. The end.

Anyone investing in stocks (which we all do, hopefully) is happy that companies are fighting for every dollar. They are all doing it...you might not like it, but it's true. It's what gives us money to buy those $3 waters and $400 park tickets.

 

[Lucky]

Let the record show that someone on this board started a thread to argue about and "educate" the rest of us on Disney snack prices.

But...but he went to the Wharton School!

Spoiler

just like this guy...

 

[Chef Mickey]

That was not Disney's business model in the past, and the the past that made Disney into the legacy it rides on today. So yes, I do make it very much about Disney and not general business. Because "maxium profits" is not the only business strategy on the planet.



But you set the tone that if you aren't willing to just go along - you are in the wrong and need to 'stop complaining'. When in complaining, what people are expressing is their dissatisfaction with the business.



Disney is a monopoly on food vending in the parks. Your counterpoints of 'haul crap around all day' and 'don't buy product X, instead accept the free product Y' do not change that but instead argue you can avoid the food vending, not that Disney is the only food vendor available. And if I'm hungry for a hot meal... packing a bag of goldfish and grabbing a free cup of water is not the same thing.

The truth is, every company is doing this to you on a daily basis but your perception is based on your focus group of 1. You're getting ripped off constantly but everyone's tolerance is different because everyone's perceived value is different. Companies are trying to find that right mix and Disney is just one of them.




That is one train of thought - and not the only one.. so you shouldn't act like it's universal law and everyone should just roll over and accept it.

If you accept any price because the business set it... because it's business... prices would never go unchecked. The only way the tolerance point is found is when customers DO COMPLAIN and DO RESIST. So why do you think those who do resist are somehow wrong or not worthy?

They are worthy. Everyone has a choice at the end of the day, making the free market a beautiful thing.

 

[Chef Mickey]

]
But...but he went to the Wharton School!

Spoiler

just like this guy...

I may have gone to Wharton, but I will be voting Libertarian in this election.

 

[YozhikRoth]

What I'm not getting, is that there are no surprises here. Before one steps foot in Disney, they should know exactly how much every drink, burger, fry, cupcake..........costs. Everyone has options if they are looking to shave money off their budget. Disney is simply charging what the market allows them to, from park admissions down to the cost of water. I know that a population feels that Disney owes it to the public to make a vacation affordable, but Disney also has an obligation to everyone from the Board, the Shareholders, the Employees, the State of Florida.....to maximize revenue where the economy dictates it can. If the population gradually got fed up and stopped going to Disney, no doubt they would respond, but now there is no such economic pressure.

Does this make Disney good or evil, no, it simply shows they are a large corporation acting in the best interests of its shareholders.

 

[danyoung56]

Bottled unflavored water has taste?

I don't know about unfiltered water. But filtered water with minerals added back in (like Dasani) most definitely has a taste.

 

[danyoung56]

And it's even more at a Cowboys game where you'll see a lackluster effort and a usual home loss during the 3 hours of misery.

Hey, don't be baggin' on my Cowboys! (Although last year it was really really hard to be a Cowboys fan . . .)

 

[xdan0920]

It's not good; it's reality and common in every business.

Something that's common and sucks is the same if not worse then something that's uncommon and sucks.

 

[Incomudro]

You want high prices?
Take a look into what Atlantis charges for beverages and food.

 

[njDizFan]

The number 1 responsibility of ANY publicly traded company is to maximize shareholder value. Period. The end.

Anyone investing in stocks (which we all do, hopefully) is happy that companies are fighting for every dollar. They are all doing it...you might not like it, but it's true. It's what gives us money to buy those $3 waters and $400 park tickets.

But there are very different philosophies on how to grow shareholder value. TWDC is using the recent common forumla of massive stock repurchases and lowering operating expeditures.

Some may argue that that is shortsighted and will help the bottom line for this quarter. When corporations act like they are living paycheck to paycheck they have stand a good chance of forgetting their core values on what made the business profitable in the first place. Guest satisfaction, some sort of civic responsibility and a great product. But hey, if $5 water is going to give F&B their 10% growth for the quarter, we have to live with it right?

 

[The Empress Lilly]

How the heck did this turn from a rational discussion about high price points and the choice to pay them or not, to mud slinging, snide remarks, and insults? Now I'm starting to remember why I quit coming to this site all those years ago.

Because you know this side has high levels of mud slinging and snide remarks, they are ok. Also, if you don't like rude behaviour, you can go someplace else, it's called free market. Besides insults here are nowhere near as bad at select sports games.

Also, I own $3.27 worth of stock so my opinion overrides yours and speaks of superior business intellect.


[I have learned sarcasm detectors are left at the door at this site, so yes kids, that was all satire ]

 

[Disneyhead'71]

well, gee...now I'm confused.....IS Disney World a charity? or do they make a profit? My bad...

WDW is an NGO operated by SeaWorld Ent.,Inc, LLC. All the profits go towards funding of the endangered Oldwhiteceo and other endangered Super Flousvps.

 

[DisneyFans4Life]

You want high prices?
Take a look into what Atlantis charges for beverages and food.

Holy cow! My wife and I went there for our honeymoon back in 2011 and it wasn't the cheapest. Then again...that's where we wanted to go, we did our research, made a plan, saved some money and had a great time. If I wanted a $15 drink...I didn't care because I had planned ahead and knew what I was getting myself into.

A few years ago we did all inclusive in Ochos Rios Jamaica and that was the way to go. Pay a set amount of money and eat and drink as much as you want!

 

[Chef Mickey]

But there are very different philosophies on how to grow shareholder value. TWDC is using the recent common forumla of massive stock repurchases and lowering operating expeditures.

Some may argue that that is shortsighted and will help the bottom line for this quarter. When corporations act like they are living paycheck to paycheck they have stand a good chance of forgetting their core values on what made the business profitable in the first place. Guest satisfaction, some sort of civic responsibility and a great product. But hey, if $5 water is going to give F&B their 10% growth for the quarter, we have to live with it right?

Share repurchases can be powerful in growing EPS. Most of Disney's share repurchases have been made below its current trading prices, making it a pretty good thing for shareholders. Share repurchases get messy when the stock continues to fall, something DIS hasn't done.

I've been highly critical of Iger's short-sightetdess and lack of park expansion, particularly at WDW. However, he's not blind to worldwide expansion (Hong Kong, Shanghai) and this has been a primary reason for molasses movement at our beloved WDW. I do think he's stood on the the shoulders of geniuses at WDW, but he has made some good acquisitions and the jury is still out on the additions to WDW.

The key is, we need MORE at WDW and I do think they'll ultimately be some "I told you so" when WDW experiences some pause in guest growth.

All that aside, water prices aren't coming down.

 

[Chef Mickey]

Hey, don't be baggin' on my Cowboys! (Although last year it was really really hard to be a Cowboys fan . . .)

I am a GIGANTIC Cowboys fan, don't you worry. I absolutely can't wait for this season, although I am skeptical of the draft...