Why Do People Struggle So Much With Snack Prices?

[Incomudro]

Finally, someone that actually understands the company. A toy is the right word, not doubt. You see the single mom struggling to make ends meet buying a Tesla? Or any of the 47% of Americans paying no income tax? Or anyone in the south where commutes average 50+ miles roundtrip?

This Tesla can't even charge quickly enough to make it relevant, requires special charging stations, special outlets to even charge "quickly" (still takes over an hour for a 60 mile charge with a 240v connector and dual chargers). Don't have a garage or don't want to retrofit? It's going to cost $3.25, take 19 hours to charge, and only get you 60 miles on 120v.

BTW, a 60 mile charge costs around $2.50. With gas prices under $2, many gasoline cars get 40mpg, so you're looking at around 50 miles for $2.50 on gas versus 60 miles on electricity for $2.50.

I'm a bit of a car buff, so yeah - I don't get this cars relevance.
Me, my wife and kids drove from the NYC area to Martha's Vinyard two summers ago.
If we could afford a Tesla, and were driving one - we would have had to stop and recharge for a good 1/2 hour or more on the way there. Tesla fans will tell you this is acceptable, and even an enjoyable break.
Hang out! Get a cup of coffee!
Worse yet, on the trip back - I would have had to find a charging station somewhere in a rough section of the Bronx sometime after mid night, on a hot summer night, while my wife and kids slept in the car.
Just find a charging station, and hang out tethered to it for a 1/2 hour.
Yeah, ok!
Glad to have been driving my wives Hyundai Tuscon, having topped off on the highway somewhere in about a minute with no need to stop anywhere.

 

[Chef Mickey]

I'm a bit of a car buff, so yeah - I don't get this cars relevance.
Me, my wife and kids drove from the NYC area to Martha's Vinyard two summers ago.
If we could afford a Tesla, and were driving one - we would have had to stop and recharge for a good 1/2 hour or more on the way there. Tesla fans will tell you this is acceptable, and even an enjoyable break.
Hang out! Get a cup of coffee!
Worse yet, on the trip back - I would have had to find a charging station somewhere in a rough section of the Bronx sometime after mid night, on a hot summer night, while my wife and kids slept in the car.
Just find a charging station, and hang out tethered to it for a 1/2 hour.
Yeah, ok!
Glad to have been driving my wives Hyundai Tuscon, having topped off on the highway somewhere in about a minute with no need to stop anywhere.

Haha! I've heard the get a cup of coffee before. How many cups can you have before it's ridiculous? I recently drove 700 miles in 2 days...not an option with the Tesla. It's a step back from gas. Needs longer range, A LOT more charging stations, quicker charging, and cheaper. Until then, it's a toy.

 

[Incomudro]

Haha! I've heard the get a cup of coffee before. How many cups can you have before it's ridiculous? I recently drove 700 miles in 2 days...not an option with the Tesla. It's a step back from gas. Needs longer range, A LOT more charging stations, quicker charging, and cheaper. Until then, it's a toy.

Agreed.
Until, or if ever - recharge times from empty can match gas fill up times - the electric mode will never take off.
Unless of course, gasoline really does get scarce and/or becomes prohibitively expensive.
In my opinion the untapped market for electrics is in a Peoples Car.
A commuter vehicle that is affordable and outcompetes in price and utility it's gasoline fueled competitors.

 

[Pumbas Nakasak]

Haha people complaining about $3 water makes me laugh.

come over to london tourist locations where it can cost the equiv to $6+ dollars for a bottle of coca cola.

It's not just disney, most touristy places do the same thing because the demand is high.

take a trip to Walmart on arrival into orlando and stock up on cheap water, and take a bottle to the park every day and then use the fountains for refill

But you southern shandy drinkers are that thick you are happy to be ripped off, and your tap water is really urine so that explains why you can stand the fountain water. Cheapness may be a factor too.

 

[lazyboy97o]

Tesla Motors is relevant because the mantra that is being repeated is that Disney's short term focused strategy built on contempt for the consumer is the singular, only means of generating profit and shareholder value. Regardless of the specifics of any of their vehicles, Tesla Motors is utilizing a long term strategy built on good will. Nobody is denyin that Musk wants to make money, but his methods disprove the fallacy of a single means and attitude.

 

[DarthMileZ]

But you southern shandy drinkers are that thick you are happy to be ripped off, and your tap water is really urine so that explains why you can stand the fountain water. Cheapness may be a factor too.

Nothing wrong with our water here, dunno what you've been tasting

 

[Pumbas Nakasak]

water thats not been recycled.

2. Whose been drinking my London water
According to visitlondon.com �A drop of rain falling into the Thames at its source in the Cotswolds will have been drunk by 8 people before it reaches the sea.� (a)
Though Thames will argue they dont recycle in London, its the dirty beggars upstream beyond Richmond that would bother me. Drink ale its safer

 

[flynnibus]

Funny how when the company disproves the doomsdayers business rules they switch to trashing the products vs facing the discussion

 

[Chef Mickey]

Tesla Motors is relevant because the mantra that is being repeated is that Disney's short term focused strategy built on contempt for the consumer is the singular, only means of generating profit and shareholder value. Regardless of the specifics of any of their vehicles, Tesla Motors is utilizing a long term strategy built on good will. Nobody is denyin that Musk wants to make money, but his methods disprove the fallacy of a single means and attitude.

They won't survive long enough if they don't make a profit. Tesla is doing nothing you're implicating they are doing. All businesses are trying to crush their competition, make the most money possible, and trying to squeeze customer margin.

Telsa's concept is completely unviable in the current economic environment and current technology. The electric car technology is terrible at the moment, can't survive without government subsidies, and still cannot even turn a profit with the subsidies. The cars take WAY too long to charge, aren't cheap to charge, and owning an electric car of today is a step backwards in consumer experience. Study after study shows the average consumer loves green until they have to pay for it.

 

[lazyboy97o]

They won't survive long enough if they don't make a profit. Tesla is doing nothing you're implicating they are doing. All businesses are trying to crush their competition, make the most money possible, and trying to squeeze customer margin.

Telsa's concept is completely unviable in the current economic environment and current technology. The electric car technology is terrible at the moment, can't survive without government subsidies, and still cannot even turn a profit with the subsidies. The cars take WAY too long to charge, aren't cheap to charge, and owning an electric car of today is a step backwards in consumer experience. Study after study shows the average consumer loves green until they have to pay for it.

None of this counters my point. At best you are contradicting yourself. The economics not being entirely there now is just more evidence of the "non-existent" long term strategy.

 

[Chef Mickey]

None of this counters my point. At best you are contradicting yourself. The economics not being entirely there now is just more evidence of the "non-existent" long term strategy.

It's because if they don't do this strategy today, they have no business. Plenty of suckers are willing to pay for earnings that haven't materialized yet. Wallstreet likes a story more than they like a real business. TSLA is genius at selling this snake oil to Wallstreet while AAPL can't trade at a multiple over 7 despite making more profit than any company.

 

[flynnibus]

It's because if they don't do this strategy today, they have no business. Plenty of suckers are willing to pay for earnings that haven't materialized yet. Wallstreet likes a story more than they like a real business. TSLA is genius at selling this snake oil to Wallstreet while AAPL can't trade at a multiple over 7 despite making more profit than any company.

Yet, by your own metrics they are an amazballs business... returning all that value to the shareholders... yet they operate entirely opposite of how you say the business should be ran. Do you need enlist a public university person to help you understand that contradiction?

 

[bjlc57]

Why do people complain about the cost of water?

It's something they see in the supermarket and can quickly do the math on how much they pay for a bottle vs. how much Disney is charging.
My local supermarket has three twenty four packs on sale for $10. That works out to 14 cents a bottle. Disney HAS to be getting a better price than that, so people look at the cost and right or wrong feel they are being gouged.

I personally do not buy the water in Disney because I feel it is not a good value for me. I will get the free ice water from a QS with my meal, or I will bring in my own water. Personal choice.

About ten years ago, I was walking towards World Showcase and a couple were walking in front of me. As they passed the souvenir/water/juice/soda stand, the male reached into the ice cooler, grabbed a water and kept walking. I told the CM that the guy just stole a water and was told that policy is that the CM does not worry about theft of the bottles. So, another reason that water is so pricey is that the amount of inventory shrinkage is probably huge and the prices need to reflect this disappearing merchandise.

As for ice cream, how often have we seen a child drop their Mickey bar and a CM appears with a replacement? This cost has to be accounted for somewhere and that is part of the mark up.

I really don't mind the cost of ice cream at Disney as it is a luxury I never have at home, so I am happy to splurge. Again, my feelings, but I can see where someone could say they could get a box of ice cream bars at the supermarket for the same price at home.

On an unrelated note, I can see myself becoming that crotchety old guy, "$4.00 for a bottle of water? Heck, when I was a kid they were a quarter!"

Stealing is stealing.. I just cannot imagine some one doing that. That point being said.. on our last trip we paid to have groceries delivered to our rooms.. for less then $50 in delivery charges we had all the gatoraide you could possibly drink in 10 days for the two of us.. we brought in 3 32 oz bottles per day and drank plenty back in the room.. those bottles were far less then $2. a piece... basically each bottle was a third of what we would pay in the park for at least one third more product.. YOu can save on your drinks.. either go to the Hess store or have groceries brought to your room..and bring in your own drink.. our insultated bag is on its sixth trip.. and it cost us two bucks back in the day..

 

[Wdw62114]

But if they bring in drinks, that will take away the fun of them complaining.

 

[Much-Pixie-Dust]

It's not a knock on anyone's taste, it's how tap water is essentially repackaged in unnecessary plastic and marked up an insane amount. On a level, I can justify buying Poland Springs. Honestly it would be environmentally responsible of Disney to stop selling bottled tap water, and instead offer more water fountains and bottle filling stations.

I would love more bottle filling stations. I love using my filtered water bottle.

 

[Chef Mickey]

Yet, by your own metrics they are an amazballs business... returning all that value to the shareholders... yet they operate entirely opposite of how you say the business should be ran. Do you need enlist a public university person to help you understand that contradiction?

Careful there..TSLA has been somewhat of a rollercoaster and despite my great education, even I can't explain the irrational behavior on Wallstreet. This is a game, sometimes completely disconnected from reality. The market can stay irrational longer than many can stay solvent. I would not be a buyer of TSLA at any price and prefer Disney's long term business any day.

There is a ton of junk out there with billion dollar valuations, but it's musical chairs where you don't want to be left standing when the music stops and you're holding the proverbial bag.

 

[lazyboy97o]

So now Disney actually has the out-dated, useless, long term strategy? Musical chairs indeed.

 

[Chef Mickey]

So now Disney actually has the out-dated, useless, long term strategy? Musical chairs indeed.

Disney is a proven leader that actually makes real money, pays dividends, buys back shares, and has a huge portfolio of diverse assets set up for long term growth and profits.

 

[Chef Mickey]

For example, you really think AAPL deserves its current multiple while MSFT trades at 35 times earnings? You think Icahn sold his shares because he's worried about China? Markets are a fluid, sometimes irrational entity, but real businesses always prevail. I am a long term investor...traders have a different strategy.

For what it's worth, Icahn will be dead soon and wants to leave a legacy more than anything. He can lose $10b and just chalk it up to a bad trade and still be a billionaire. If he's right, people will talk about him forever.

 

[thomas998]

I just got back from WDW on a wonderful 8 day trip. If anyone else was there, you know it was pretty warm (over 90 several days) and water/drinks were definitely a huge need. There was 0 rain too.

I constantly heard things like:
"$3 for water is robbery!!"
"Why is water $3??"
"$4 for ice cream?"
"Why is Powerade $4.25?"
"Mickey isn't out here because he's too busy in the back counting our money!!"

Give me a break. What do people expect, honestly? We all get that water is expensive on a per bottle basis, but isn't it just the cost of doing business? Expensive snack items aren't a Disney thing. This is the case at most amusement parks, Fairs, and concessions (movies, shows, sporting events, etc). They have to make money on this higher margin stuff because despite what so many think, they don't make huge margin on park entry.

I still think many restaurants are pretty decent value, even without a meal plan. We ate at a favorite, Liberty Tree, and got the Pilgrim's Feast for under $20/person. This value for real food is better than a hot dog and fries and close to a standard lunch $15 lunch at a restaurant chain.

Also, they do offer free ice water if hydration is your concern. I just can't get over how much people complain about something so standard. I feel like people come to the parks feeling ripped off and it's a self-fulfilling prophecy.

Well your logic is pretty faulty. Movie theater charge so much because they don't get much of the actual ticket price for their own pocket. During the first run of a movie a theater will likely only get 30% of the ticket price the rest goes back to the distributor and studio that made or distributed the movie. So a 9$ ticket only generates about 2.70 in revenue for the theater... So I understand their need to charge more for snacks.... At fairs, the concession operators in those have to pay a fee to sell and then a percentage of the amount of the sales along with that so again I understand them having to charge more, the dirty secret there is that most people don't realize that the group putting on the fair is getting part of the money paid for every funnel cake even though they never helped to make it... BUT Disney on the other hand doesn't have to give any of the money from the gate to anyone else it stays with Disney... So when they charge $100 for a ticket they keep $100.... No real need for astronomical pricing here....

Now do I expect them to charge more for what they sell? Yes I do because they can.... And in general I wouldn't complain about the prices except for one tiny little problem... The quality of the food has gone down the toilet while the prices just go higher. It makes me think McDonalds and why I don't go there anymore, they decided to raise prices while lowering quality... I don't accept that. You need to raise prices to maintain the same quality of the product fine, I can accept that... But don't raise prices and lower the quality because then I have a problem with it and that is what Disney has done in spades.