-
Welcome to the WDWMAGIC.COM Forums!
Please take a look around, and feel free to sign up and join the community.
Soft Drink Prices being lowered for June
- Thread starter mkt
- Start date
POOHKILLEDTOAD
New Member
gee, i wonder which one eisner will pick... more money or less money:zipit:
you're as cynical as me... just not as well rounded.. :lol:
that being said, I don't think this was a decision made by Eisner... and I doubt that he'll really care about 50 cents... considering what Disney pays for those bottles. Somewhere in the neighborhood of free and almost free
that being said, I don't think this was a decision made by Eisner... and I doubt that he'll really care about 50 cents... considering what Disney pays for those bottles. Somewhere in the neighborhood of free and almost free
iluvstitch
New Member
That's interesting. Disney just announced sodas will now be free on the DCL, too. -Steph
Pioneer Hall
Well-Known Member
Coke must be treating them pretty well that they are lowering the prices. Not for nothing, they still make all the money on the fountain sodas. It costs them nothing for those. Unfortunately I don't see this sticking around for long. I think the same people that spend 2.00 per bottle would spend 2.50 per bottle. Especially in the summer when it is very hot.
ToTBellHop
Well-Known Member
I could definitely see this raising profits. I'm sure someone (or a team of someones) with a Ph. D. in Statistics told them the probability of profits rising from a decrease in price is high. All it takes is 25% more sales, which is quite possible. I'm more likely to spend $2 than $2.50. For one, the lack of change in my pockets would be nice. The lack of CMs foraging for quarters every time guests pay makes the CMs more efficient and the lines shorter to buy snacks. I'm sure you have all been in the position where you wanted to buy a snack but the line was too long, so you walked away. Shorter lines would have caused you to buy. There are a lot of effects to take into account.
wannab@dis
Well-Known Member
Totally agree with this. They have probably found that they can decrease the cost and increase their profits. I really believe they will shorten the lines since there will be less time involved in making change. And, I think more people will buy the drinks at the lower price.
If I remember correctly (probably a research CM can verify) they had a question on a survey that I took that asked about the costs of drinks and snacks. It was a web-based survey that I received by email when I returned home last December. That may have been used for this trial.
CTXRover
Well-Known Member
This was first rumored almost, what, a year ago now? I'm glad that they finally are doing it, even if it is just a "test". But why just AK and MK? Seems odd to have half the parks at one price and then Epcot and MGM have higher prices. But whatever could lead to lower costs is perfectly fine by me. Hopefully the "test" will go well and we can look forward to permanent lower prices in the future. My guess is as the costs for sodas increased over the past years, the saw a decrease in revenue as people just bought less at the higher prices. They probably reached that point where people don't bother buying as much when the prices get too high.
Interesting that all these tests are going on recently. This, PI's open gates all night, the Extra Magic hour thing in the evenings for resort guests etc. Somebody is working hard somewhere to improve things...even if some are based on which makes more $$$ overall. I'm eager to hear what they decide on some of these tests. Especially the evening Extra Magic hour. I loved that idea! I hope it went over well during the test.
Interesting that all these tests are going on recently. This, PI's open gates all night, the Extra Magic hour thing in the evenings for resort guests etc. Somebody is working hard somewhere to improve things...even if some are based on which makes more $$$ overall. I'm eager to hear what they decide on some of these tests. Especially the evening Extra Magic hour. I loved that idea! I hope it went over well during the test.
Mission: SPACE
New Member
Exactly. Price decreases, demand increases. It's the inverse proportionality (is that a word?) of simple economics.
Even if it's only 50 cents, if a family buys 4 Cokes at one time, they're getting one for free at the new prices. So it's a good deal for everyone, really.
TimeTrip
Well-Known Member
Hmm, well I feel the problem with that theory is the location where the bottles are sold. They're at disney. Tourists are hot and thirsty. I doubt that sales will go up that much if they drop from $2.50 to $2.00. They want their drink and they'll do whatever it takes to get it. Not to mention that most people are in the mindset of "i'm on vacation, of course its gonna be expensive".
At least the price difference between fountain drinks and bottled drinks won't be so bad anymore.
At least the price difference between fountain drinks and bottled drinks won't be so bad anymore.
We did a study on this in one of my Marketing classes at the University of Houston back in.......1995.:lookaroun We discovered that you rarely increase revenue when you lower prices because you have to sell so much more to get the same amount of revenue. I don't think that the price of a soda is restrictive at $2.50 a bottle. There will be an increase in sales but I don't think it will be enough to offset the lower price. I would love it if it happens because I love Coke (I should be drinking Diet Coke) and this could save me some money on my trip in November. The only argument that I have seen that seems to make sense is the change issue. No quarters given out at 2 bucks. Even that is not full proof. I would bet that about half of the time 2 cokes are bought instead of 1 which gets you back to no quarters to be given back. It would still help but I'm putting my money (no pun intended) on the price goibg back to $2.50 in July. 
Ringo8n24
Active Member
If quantity increases, then the commission checks Disney receives from Coca Cola will increase. Therefore, someone at Disney may have calculated that the increase in the commission checks will be greater than the 50 cent each decrease in price. I work for a very large entertainment corporation, but not as big as Disney, and those Coke commissions can be pretty substantial...especially in the summer.
ToTBellHop
Well-Known Member
The reason this is at MK and AK is simple. In terms of attendance, these parks are at the extreme (most and least crowded), so the total number of guests in these two parks in a given day is roughly equal to the total number of guests at Epcot and MGM. MK and AK serve as the test groups for this experiment, while Epcot and MGM are the experimental control, and the n value for both the test group and the control group are equal. This is the only way to perform such a study--the only thing that changes, hopefully, is price. Time of year, number of guests, weather conditions, etc. should remain constant. It's an extremely well-planned experiment if you ask me 
speck76
Well-Known Member
BAD...WRONG....
Sorry, I do this for a living.
Demand is demand. Let's say there is demand for 1,000 bottles of Coke per day at drink stand "A". No matter the price, the demand will still be 1,000 bottles per day. Now, say out of the demand of 1,000 bottles, 250 people will not buy due to the cost, this is your price sensitivity. The other 750 ppl that buy may not care what the cost is. Now, if the price is lowered, and 100 of the 250 people that would not previously buy now will buy a soda. The price sensitivity has now decreased, but the demand is still only 1,000 bottles per day....all the stand is doing is capturing more of the existing demand.
Now, the financial part. If Stand "A" sold 750 bottles per day at $2.50, the stand took in a total of $1,875. After the price decrease to $2.00, and the stand sold the additional 100 bottles, the total take for the day would only be $1,700. The stand would actually have to sell 937.5 bottles at the lower price just to meet the prior sales mark.
Furthermore, if each bottle has a cost to the retailer of $.10, the cost of 750 bottles would be $75, and profit would be $1,800. Under the new pricing structure, costs would be $93.75, so on the same amount in sales, profit would only be $1781.25.
Now, back to the increasing demand. If Stand "A" can create "new customers" then demand will increase. (this involves getting people that would not have gone to a drink stand to stop by) If stand "A" can not create new customers, demand will never increase.