Why Do People Struggle So Much With Snack Prices?

[DisneyFans4Life]

Eve in resorts the ice and water is free, its only soda that is restricted.

Tea is free as well

 

[Chef Mickey]

So as long as EVERYONE is robbing you... it's ok to be robbed. Got it.

What's the alternative? Nobody said it is "OK" to get robbed, but it's never going to be different so trying to make some ridiculous stand over $3 is just going to leave you thirsty or hungry. It's just what it costs everywhere and you complaining won't change it.

Consumers struggle with margin in general because they are only educated on certain goods. You are getting a "bad deal" on MANY products and services you buy every day or pay every month. You think cell phone or TV service is low margin? How about software from Microsoft? ANY retail clothing? Or that $800 smartphone? Trouble is, consumers only know prices for things they buy at the store. You have very little reference for cell phone service or cell phones because you've always been robbed.

When people see $3 water, they quickly know it's a "ripoff" because they get a 24 pack for $3 at the store.

Does the grocery store have the Haunted Mansion and 40,000 employees? Everything in this business is about convenience and demand at the moment.

 

[Chef Mickey]

The argument of 'everyone else is doing it' does not justify poor behavior. Don't you remember that lecture from your parents?

Where would the world be if we didn't hold ourselves to higher standards and instead just accepted the spread of bad behavior as the acceptable norm?

The leapfrog and shadow pricing philosophies are ways you try to convince customers your prices aren't that bad (due to relative comparisons) -- they are not justifications for the pricing.

Other venues charge such prices because they have a monopoly on access and give customers no other options. They test customer's thresholds for tolerance. It's never been seen as GOOD customer treatment, but purely one of testing how far customers will tolerate before revolting.

And unlike other examples.. Disney has many factors going for it that would improve it's margins. Like, shared functions, shared labor, economies of scale on purchasing and stocking, effectively zero rent or facilities charges, etc. Yet, they continue to be a lead in how far pricing can be pushed...

I simply disagree with your assessment on pricing and much of it is grounded in facts about business in general. You're making this a Disney issue, but the truth is, EVERY company tests consumer willingness to pay higher prices AND wants to extract every dollar of consumer surplus possible. That's business and it's happening every single day with every single company. I never said it's "right" or "good behavior" but it IS reality. You will never stop companies trying to make money and ultimately, you have thousands of choices. It's called a free market.

I gave you examples in a previous post of companies extracting margin:

TV and Cell Services
Internet Services
Software
Movie Theaters
OTHER theme parks
Sports Stadiums - WAY worse than Disney
Airlines - Have you seen oil prices lately? You see airline tickets dropping? No, airlines are making RECORD profits because they can.
Makeup and cosmetics - the ultimate in robbery.

It all goes back to simple economics and what the market will accept. Consumers ultimately have choices in nearly every situation. Disney is not a monopoly. Don't like snack prices? They let you bring in your own. Don't want to pay $3 water? They'll give you FREE water, in a cup, with ice, with a lid.

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.

Clearly, Disney isn't charging enough because record crowds are causing their parks to burst at the seams as they seek further testing of demand based pricing to quell overcrowding.

 

[POLY LOVER]

in comparison the prices arein line if not better than most sporting events that last maybe 3 hours,
you can complain but I don't think concession prices are the place to complain.

typicical sporting event:
decent seat 100 to 150.00
Parking $35.00
Beer now 17.50 for anyhing better than water down beer.
Hot dogs , hamburgers etc off the carts.

 

[POLY LOVER]

digest this: sporting event vs Disney day


The index includes ticket prices for four seats along with the cost for two beers, four soft drinks, four regular-size hot dogs, parking, two programs and two souvenir caps.
The Eagles came in below the league average of $427.21, and were ranked ranked 21st in the 32-team National Football League.

 

[Chef Mickey]

in comparison the prices arein line if not better than most sporting events that last maybe 3 hours,
you can complain but I don't think concession prices are the place to complain.

typicical sporting event:
decent seat 100 to 150.00
Parking $35.00
Beer now 17.50 for anyhing better than water down beer.
Hot dogs , hamburgers etc off the carts.

Excellent post. 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. Cowboys charge $60 for parking and a decent ticket is $300.

 

[Wdw62114]

Why? Because they are intelligent enough to not smile when getting bent over?

$3 bottle of water is getting bent over? So you only compare that bottle price to a multi-pack breakdown at the grocery store huh? Yeah, talk about intelligence.

 

[DisneyFans4Life]

$3 bottle of water is getting bent over? So you only compare that bottle price to a multi-pack breakdown at the grocery store huh? Yeah, talk about intelligence.

I like your avatar...

 

[flynnibus]

What's the alternative? Nobody said it is "OK" to get robbed, but it's never going to be different so trying to make some ridiculous stand over $3 is just going to leave you thirsty or hungry. It's just what it costs everywhere and you complaining won't change it.

Actually.. but your own argument, if everyone DID do something about it, the prices would change. The problem is when the bulk of customers just roll over the change is seen as accepted and the process repeats.

You did set the tone that if you aren't OK with the prices, then something is wrong with you. People in this thread even go as far as the cliche 'maybe a disney vacation isn't for you'... which basically says "If you care about value, or your money, a Disney vacation isn't for you".

Consumers struggle with margin in general because they are only educated on certain goods. You are getting a "bad deal" on MANY products and services you buy every day or pay every month. You think cell phone or TV service is low margin? How about software from Microsoft? ANY retail clothing? Or that $800 smartphone? Trouble is, consumers only know prices for things they buy at the store. You have very little reference for cell phone service or cell phones because you've always been robbed.

I'm not an uninformed customer - I've done manufacturing, I've done product development, I've done sales, I've done marketing, I've done pricing. I know the concepts in play. And I also know the consequence of 'captive audience'.

Just because you CAN do something doesn't make it the right thing to do by your customers.

Yes Disney has tons of overhead that is not directly monetized and needs revenue from other activities to fund the beast overall. But your HM analogy falls down when you compare Disney against itself. The HM has been there all along, and the model that supported it is generally the same... yet price escalation in things like food have outpaced the rest of the model and Disney's own fiscal results show higher margins. So it's not 'we gotta pay for this overhead' - its 'what can we charge and keep the chart going the correct direction'

 

[flynnibus]

$3 bottle of water is getting bent over? So you only compare that bottle price to a multi-pack breakdown at the grocery store huh? Yeah, talk about intelligence.

You're gonna be a new record for how fast you make the list. Your argument is basically 'You all are stupid' and you back it up with 'you are stupid'. A real winner.

 

[PurpleDragon]

Kind of funny that people pitch a fit about $3 for a bottle of water at WDW, but yet no one bats an eye at the $5 drinks at your average movie theater. I guess it comes down to what people are exposed to most. A lot of people frequent the movie theater on a regular basis and the pricing is nothing new to them, it something that is pretty much expected at a movie theater. But WDW people only visit once every few years at most, so people are often surprised by the higher prices in comparison to what they normally see outside of the parks.

 

[Wdw62114]

You're gonna be a new record for how fast you make the list. Your argument is basically 'You all are stupid' and you back it up with 'you are stupid'. A real winner.

Yet, still can't answer the question. And didn't you just do the same thing with your response? LMAO!! Please excuse me, I have to go complain at the bar I was at last night about how much my beer costs.....you know since that bottle is so much cheaper as an 18 pack breakdown at the store.

 

[flynnibus]

I simply disagree with your assessment on pricing and much of it is grounded in facts about business in general. You're making this a Disney issue, but the truth is, EVERY company tests consumer willingness to pay higher prices AND wants to extract every dollar of consumer surplus possible. That's business and it's happening every single day with every single company.

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.

That's business and it's happening every single day with every single company. I never said it's "right" or "good behavior" but it IS reality

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.

Consumers ultimately have choices in nearly every situation. Disney is not a monopoly. Don't like snack prices? They let you bring in your own. Don't want to pay $3 water? They'll give you FREE water, in a cup, with ice, with a lid.

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.

Clearly, Disney isn't charging enough because record crowds are causing their parks to burst at the seams as they seek further testing of demand based pricing to quell overcrowding.

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?

 

[Wdw62114]

Kind of funny that people pitch a fit about $3 for a bottle of water at WDW, but yet no one bats an eye at the $5 drinks at your average movie theater. I guess it comes down to what people are exposed to most. A lot of people frequent the movie theater on a regular basis and the pricing is nothing new to them, it something that is pretty much expected at a movie theater. But WDW people only visit once every few years at most, so people are often surprised by the higher prices in comparison to what they normally see outside of the parks.

They don't complain about the movie theater prices because there isn't a forum available to vent about getting "bent over". I totally agree with you though

 

[PurpleDragon]

They don't complain about the movie theater prices because there isn't a forum available to vent about getting "bent over". I totally agree with you though

Also people have gotten used to smuggling drinks and snacks into movies to avoid the high prices, I don't think its common knowledge that you can bring your own water bottle into the parks and fill it at the nearest water fountain. So a lot of it comes down to the fact that people end up paying extra for their own ignorance of the park policies.

 

[threvester]

Kind of funny that people pitch a fit about $3 for a bottle of water at WDW, but yet no one bats an eye at the $5 drinks at your average movie theater. I guess it comes down to what people are exposed to most. A lot of people frequent the movie theater on a regular basis and the pricing is nothing new to them, it something that is pretty much expected at a movie theater. But WDW people only visit once every few years at most, so people are often surprised by the higher prices in comparison to what they normally see outside of the parks.

im at a movie for 2 hours=1 beverage
im at Disney for 2 weeks=42 beverages
getting slapped in the face once is no where near as bad as 42 times in a row

 

[Wdw62114]

Also people have gotten used to smuggling drinks and snacks into movies to avoid the high prices, I don't think its common knowledge that you can bring your own water bottle into the parks and fill it at the nearest water fountain. So a lot of it comes down to the fact that people end up paying extra for their own ignorance of the park policies.

Complete ignorance! I usually bring my aqua flask which holds ice all day and just refill at the fountains. If I choose to spend buy a bottle of water or a soda, I don't even think about the price because i'm on vacation and I prefer to not complain about stupid things while on my vacation. Disney isnt forcing anyone to pay $3 for water. It comes down to that sense of entitlement people seem to have these days. They want everything for nothing and think they are owed everything.

 

[PurpleDragon]

Well if people were more aware of the bringing your own water bottle rule then this whole thing would end up being a non issue. Whenever we go to the parks, instead of bringing a water bottle, we buy a single $3 bottle of water and just refill it all day. We did this each day we were in the park so we ended up only paying $3 a day for our water intake.

 

[Chef Mickey]

Actually.. but your own argument, if everyone DID do something about it, the prices would change. The problem is when the bulk of customers just roll over the change is seen as accepted and the process repeats.

You did set the tone that if you aren't OK with the prices, then something is wrong with you. People in this thread even go as far as the cliche 'maybe a disney vacation isn't for you'... which basically says "If you care about value, or your money, a Disney vacation isn't for you".



I'm not an uninformed customer - I've done manufacturing, I've done product development, I've done sales, I've done marketing, I've done pricing. I know the concepts in play. And I also know the consequence of 'captive audience'.

Just because you CAN do something doesn't make it the right thing to do by your customers.

Yes Disney has tons of overhead that is not directly monetized and needs revenue from other activities to fund the beast overall. But your HM analogy falls down when you compare Disney against itself. The HM has been there all along, and the model that supported it is generally the same... yet price escalation in things like food have outpaced the rest of the model and Disney's own fiscal results show higher margins. So it's not 'we gotta pay for this overhead' - its 'what can we charge and keep the chart going the correct direction'

They don't roll over...they are willing to pay it. Some people (like myself) don't care about $3 water or $4 ice cream because we understand it's a way for parks to make money and it offsets the value of the park entry ticket. Disney could charge a more "real" price for park entry while giving you 25 cent water and it would be MUCH higher than today. Disney makes very little on park tickets because of enormous fixed costs, maintenance, and employees.

If companies screw up, they are punished by consumers. Your thesis that Disney isn't doing the "right" thing is completely subjective. Who defines right? Consumers are still willing to pay...simple as that. Disney's margins at the parks are not actually very high.

If you want to start talking about fair, many companies rip you off much harder than a $3 bottle of water on a hot day.

Make a list of the companies ripping customers off and Disney is still a ways down the list. Apple, Microsoft, Pfizer, Visa, and just about every bank are destroying you...Disney's prices are more visible and relatable so people get up and arms.

 

[Chef Mickey]

im at a movie for 2 hours=1 beverage
im at Disney for 2 weeks=42 beverages
getting slapped in the face once is no where near as bad as 42 times in a row

You're also getting 2 weeks of fun and value for your money. A movie is 2 hours and you're done. Completely different experience. Same argument if you go to 42 movies over 2 weeks (you could easily do that as the movie is 2 hour).

Movie theater drinks/snacks cost more than at Disney too, BTW.